26 Billion Won Embezzled from Elderly
Jeju Autonomous Police Unit, 2 Including CEO Arrested
A group known as 'Tteotdabang' who illegally sold health functional foods to the elderly in Jeju, defrauding over 2.6 billion KRW, has been arrested.
On the 4th, Yonhap News reported that the Jeju Autonomous Police Unit arrested Mr. A, a man in his 30s and the head of the 'Tteotdabang' company, and Mr. B, a promotional instructor in his 70s. They are accused of deceiving the elderly by falsely representing general foods as medicines and selling them at high prices to gain unfair profits (violations of the Medical Service Act, Pharmaceutical Affairs Act, Health Functional Foods Act, Cosmetics Act, and Door-to-Door Sales Act, among others). Promotional instructor Mr. C and 19 other employees have also been booked and are under investigation for the same charges.
They are suspected of operating a promotional center in Jeju from November 2021 until recently, falsely and exaggeratedly advertising health functional foods and other processed foods as medicines effective for preventing and treating various diseases. During this period, it was found that about 1,700 victims were deceived, with sales amounting to 2.6 billion KRW.
Their methods were meticulous. They set up promotional centers along roads near markets or hospitals, using samples and prizes as bait to mainly attract women aged 60 and above. They also created membership lists to strictly control access and prepare for crackdowns.
They deceived victims by introducing themselves as university professors, biotechnology PhDs, CEOs or researchers of famous pharmaceutical companies, and falsely and exaggeratedly advertised that the products they sold were effective in preventing and treating various diseases. During this process, they induced purchases by performing unlicensed medical treatments such as manual therapy in the office within the promotional center.
In particular, they sold products priced at 40,000 KRW for as much as 980,000 KRW, charging up to 24.5 times the original price to make excessive profits. For elderly people who lacked purchasing power, they first allowed them to take the products, then after a certain period, sent threatening messages through employees or visited the addresses recorded in the membership lists to collect money.
The Jeju Autonomous Police Unit obtained intelligence in February, collaborated with the Jeju District Prosecutors' Office, Jeju City, and Seogwipo City to secure related evidence and prove the charges. A police official stated, "We are expanding investigations into other companies engaging in similar illegal activities," and added, "If elderly people frequently purchase health foods, we ask those around them to pay attention."
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