Over 100 Complainants in Investment Fraud Case... Damages Exceed 200 Billion Won
There has been a surge in police reports regarding the so-called 'frozen meat collateral investment scam,' where investors were promised high returns by investing with imported frozen meat as collateral but failed to get their money back.
According to the Anti-Corruption and Economic Crime Investigation Unit of the Gyeonggi Southern Provincial Police Agency on the 21st, the number of complainants has exceeded 100 since the first report was filed in April. The amount of damages, initially reported as 80 billion KRW at the beginning of the case, has now increased to 200 billion KRW.
The police explained that the scale of the damage has significantly increased as victims have continuously visited police stations to file complaints following media coverage. The police have criminally booked and are investigating Mr. A, the former CEO of a livestock distribution company located in Gangnam, Seoul, on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes.
Mr. A is suspected of deceiving wholesalers and retailers by claiming that purchasing imported frozen meat at low prices and selling it when market prices are favorable would yield profits, thereby attracting investment funds and failing to return them. In addition, the police have booked about 20 people, including representatives of online and offline investment companies that gathered investors for Mr. A's company, frozen warehouse operators, and fund lenders.
One victim who filed a complaint with the police stated, "The suspects committed fraud by using false shipping and inventory documents to deceive victims and greatly inflate the transaction volume." The victim added, "Accomplices who participated in Mr. A's crimes by recruiting investors are lying to victims, claiming 'I was deceived too,' so a thorough police investigation is necessary."
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