‘440 Billion Won-Scale Fraudulent Fundraising’ Ado International Senior Recruiter Sentenced to 5 Years in First Trial

The top recruiter of the quasi-deposit company Ado International, who was indicted for participating in the illegal procurement of funds worth around 400 billion won, was sentenced to prison in the first trial.

On the afternoon of the 15th, Judge Park Byung-gon of the Seoul Central District Court Criminal Division 5 sentenced the top recruiter, Mr. Ham, who was charged with violating the Act on the Regulation of Conducting Fund-Raising Business Without Permission (quasi-deposit act), to five years in prison. Quasi-deposit refers to so-called ‘multi-level marketing’ where funds are raised from an unspecified number of people by promising principal protection without permission, registration, or reporting according to laws and regulations.

On this day, Judge Park acknowledged Mr. Ham’s guilt regarding the quasi-deposit charges related to Ado International. Judge Park criticized, “Quasi-deposit crimes often target economically vulnerable people who lack knowledge and information as victims, and many victims fall into long-term poverty because they cannot properly repay the principal.” He added, “Since quasi-deposit crimes have a significant adverse impact on society as a whole, strict punishment is necessary.”

However, three others who were also indicted for quasi-deposit activities through a fake investment company were acquitted. Judge Park stated, “In February, the National Assembly amended the quasi-deposit act to include virtual assets as regulated funds. Interpreting the defendants’ receipt of virtual assets such as Bitcoin or Ethereum as fund-raising under the previous quasi-deposit act and considering it as quasi-deposit activity violates the principle of legality.”

According to the prosecution, Mr. Ham attracted investment funds by claiming that investing in Ado International, which purchases and distributes luxury goods at low prices, guarantees the principal and yields high profits.

Meanwhile, Mr. Lee, the CEO of Ado International, who led the quasi-deposit crimes, was sentenced to 15 years in prison in the first trial in July. Both the defendant and the prosecution have appealed, and the appeal trial is currently underway.