[Exclusive] Three Top Recruiters of Huestem Korea, Suspected of Illegal Multi-Level Marketing Worth 1 Trillion Won, Sent to Prosecution in Custody

Regional Manager 'Platformjang' Position
Compensation Based on Investor Performance

Top recruiters of Huestem Korea, suspected of a 1 trillion won-scale illegal multi-level marketing fraud, have been handed over to the prosecution while in custody.

The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency announced on the 1st that last week, three top recruiters of Huestem Korea, including Mr. A, were sent to prosecution in custody on charges of fraud.

[Image source=Yonhap News]

Mr. A and the other two individuals held the position of regional managers called 'Platform Managers' within Huestem Korea. They are suspected of being deeply involved in Huestem Korea’s scheme to embezzle membership fees worth over 1 trillion won from investors by disguising it as goods transactions. It is known that Platform Managers received 5% of the platform sales performance based on the recruitment achievements of lower-level investors.

Meanwhile, the prosecution has requested a heavy sentence of 7 years imprisonment for Lee Sang-eun, the CEO of Huestem Korea, who was indicted in the first trial on charges of violating the Door-to-Door Sales Act.

The prosecution believes that Huestem Korea has been conducting a type of 'Ponzi scheme,' paying returns to existing investors using the investment funds of new investors without any real income.

Victims claim that the corporation promoted that investment funds would be paid out as digital assets inflated by 2.6 times, which could be converted into cash or used to purchase agricultural products, thereby attracting investors.

The first trial sentencing date for CEO Lee is scheduled for the 29th. Separately, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency is investigating Huestem Korea on charges of fraud and violation of the Act on the Regulation of Similar Financial Transactions. Initially, this case was handled by the Seocho Police Station in Seoul, but for a swift investigation, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency was reassigned as the dedicated investigation office.