Fraud of Over 3.1 Billion Won Involving 193 People, Victims Also Mocked
A group that deceived investors by promising principal protection and high returns and embezzled billions of won was arrested by the police.
The Gyeongnam Provincial Police Agency's Metropolitan Investigation Unit announced on the 20th that they arrested 76 members of an investment fraud group suspected of embezzling over 3.1 billion won from 193 people in two periods: from March 2021 to September 2022, and from April to May 2023, and that 14 of them were detained.
According to the Provincial Police Agency's Metropolitan Investigation Unit, the ringleader, Mr. A, and his group approached victims claiming to be "overseas famous virtual asset exchange investment experts," promising "high returns and principal protection."
They sent text messages containing internet shortcut addresses (links) to unspecified many people, inducing them to sign up on falsely established investment sites, and invited them to group chat rooms on social networking services (SNS) operated by accomplices.
Conversation content sent by investment fraud gang. [Image provided by Gyeongnam Provincial Police Agency]
In the chat rooms, they randomly guided (led) the timing of product purchases and recommended stocks as if they were investment experts, and used multiple ghost accounts to post fake profit certification photos to induce investment.
When victims were deceived by the fake profit certification photos posted by accomplices and deposited money, the group embezzled the funds, shut down the sites, and disappeared.
They even mocked victims by exchanging photos of chat rooms with victims through social networking services, saying things like, "Are these really XX guys? One grandmother brought her whole family and put all their money in."
The group was revealed to have operated systematically, divided into roles such as the ringleader, a deception ringleader responsible for preparing front items and establishing the fraudulent investment website, decoys posing as professional investment consultants, money laundering agents, and cash withdrawal and delivery agents.
When the police investigation began, the ringleader Mr. A recruited additional deceivers and started another crime, promising high returns through solar energy investments.
The organization divided the embezzled funds with the ringleader, deception ringleader, and deceivers taking 70%, and the money laundering ringleader, account recruiters, and money laundering agents sharing the remaining 30%. The money laundering agents distributed 2% of the amounts to the cash withdrawal and delivery agents.
The ringleader Mr. A, who planned and oversaw the entire crime, reportedly secured enormous financial power, owning several sports cars.
Among the group were members belonging to three violent organizations under management in the Gyeongnam region, who collaborated in recruiting bank accounts, withdrawing funds, deceiving, and laundering money to gain illegal profits.
The police confirmed the scale of the case with 193 victims nationwide and fraud damages amounting to 3 billion won, then merged 110 cases from 77 police stations nationwide to conduct the investigation.
They arrested five violent organization members involved in the fraud, five deceivers, four money laundering agents, four account recruiters, and four cash withdrawal agents.
Interpol red notices have been issued for the ringleader and some deceivers who fled overseas.
Chief Kim Byung-woo urged, "Approaching people through phone calls, texts, and SNS group chat rooms with bait such as high returns and principal protection is fraud," and advised, "Do not engage in any transactions."
He added, "We will strictly respond by arresting everyone who helped the crime, including those who provided front phones, front bank accounts, front SIM cards, or created the sites."
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