A group that deceived over 100 people by claiming to generate profits from overseas aluminum business and embezzled 6 billion KRW has been handed over to the prosecution.
According to the police on the 6th, the Gangnam Police Station in Seoul sent 11 people, including Mr. No, the CEO of company A, and Vice President Mr. Choi, to the Seoul Central District Prosecutors' Office on the 1st on charges of fraud and violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission.
They collected investment funds by claiming profits from aluminum business in Vietnam and then embezzled the investment funds using a so-called 'Ponzi scheme' method. A Ponzi scheme is a multi-level financial fraud method that pays returns to existing investors using money from new investors.
So far, 107 victims have been identified, with damages amounting to approximately 6 billion KRW.
As additional complaints are being filed, the scale of the damage is expected to increase further.
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