"20s Group Running Stock Leading Room Promising 10x Profit If Invest Now Sentenced to Prison"

Embezzlement of 360 Million Won from 4 Victims

A group of people in their 20s who operated a stock leading chatroom and fraudulently sold stocks, embezzling hundreds of millions of won from victims, were sentenced to prison.

On the 7th, Judge Kim Jae-eun of the Seoul Southern District Court Criminal Division 13 announced that Kim (28), who was indicted on charges of fraud, was sentenced to 4 years and 6 months in prison, Lee (28) was sentenced to 4 years, and Sung (28) was sentenced to 3 years, respectively.

Kim and Lee quit their jobs and while looking for work, saw a post on an internet website last October seeking people to work in “IPO sales.” They were offered the job of opening a stock leading chatroom and acting as promoters. During this process, Kim proposed to his friend Sung to commit the crime together, forming a group.

They received scripts and instructions from an unidentified ringleader through the Telegram messenger and called an unspecified number of people to induce them to join the stock leading chatroom. They then deceived victims by pretending to sell IPO stocks, handing over 40% of the amount received as IPO purchase funds to the ringleader and planning to divide the remaining 60% among themselves.

In November of last year, they rented an office in Bucheon, Gyeonggi Province, purchased a file containing thousands of names and phone numbers, and called an unspecified number of people, telling them they would provide stock information free of charge for a month, thereby enrolling about 100 people in the stock leading chatroom. They pretended to be senior researchers from a famous broadcasting company and posted stock-related information received via Telegram in the chatroom.

Moreover, they each operated 5 to 10 IDs in the stock leading chatroom and posted files such as account statements for profit verification received from the ringleader. Following the ringleader’s instructions, they posted messages in the chatroom stating, “If you invest now in stock A, which is scheduled to be listed in December 2023, you can earn tenfold profits. We will sell the stock we hold at a cheap price, so those who want to buy should apply. Stocks will be delivered sequentially starting the day before the listing date.” At the same time, using other IDs, they acted as if they were also purchasing the IPO stocks, playing the so-called “promoter” role.

Using these methods, the group received a total of 366.55 million won in 18 transfers from four victims between mid-November and early December last year.

The court stated the sentencing reasons, saying, “The defendants conspired with an unidentified ringleader to deceive victims and embezzled about 360 million won from victims under the pretext of purchasing unlisted stocks. Their culpability is not light, and considering the planned nature of the crime, the quality of the offense is also poor.”