[Invest&Law] Court Sentences Ado International CEO to 15 Years for 440 Billion Won Fraudulent Investment Scheme

The CEO of the multi-level marketing company Ado International, who committed a pyramid scheme fraud amounting to approximately 440 billion KRW, was sentenced to a heavy prison term in the first trial.

On the 9th, Judge Kim Ji-young of the Seoul Central District Court Criminal Division 25 sentenced Ado International CEO Lee, who was detained and prosecuted on charges of fraud and violation of the Act on the Regulation of Conducting Fund-Raising Business Without Permission, to 15 years in prison.

Seoul Central District Court, Seocho-gu, Seoul. Photo by Jinhyung Kang aymsdream@

The court sentenced another Lee, the head of the IT department, to 7 years in prison, and Jang, a senior recruiter, to 10 years in prison. Kang, an IT assistant, was sentenced to 3 years in prison.

The court stated, "It is necessary to severely punish the multi-level marketing pyramid scheme that distorted economic order by stimulating the gambling instincts of an unspecified large number of people to fraudulently obtain huge investments, producing victims in a short period," adding, "Most victims have not recovered their losses and are expressing mental and economic distress, pleading for severe punishment."

Regarding CEO Lee, the court pointed out, "He was the main planner and overall commander of the crime, and his level of involvement is serious," adding, "Although he appears to have led the case, he claimed he was not the leader and shifted responsibility to accomplices, and destroyed evidence and fled once the investigation began."

Lee and others were prosecuted on charges of raising a total of 446.7 billion KRW through a pyramid scheme from February to July last year by promising principal guarantees and profits through luxury goods transactions.

A pyramid scheme refers to a criminal act of raising funds from an unspecified number of people by promising principal protection without permission, registration, or reporting as required by law. If it is proven that money was received despite no possibility of repayment, fraud charges are established.

It was investigated that they raised investment funds by creating an investment payment application (app) called 'AdoPay.'

So far, a total of 120 people have been arrested and prosecuted, and 11 people, including CEO Lee, are on trial while in detention.