[Economic Crime 24 Hours] "Investment in Cashing Out Former President's Slush Fund"... Gang Defrauding 3 Billion Won

Investment Solicitation Claiming Gold Bars and Foreign Currency in Secret Fund Warehouse
Meticulousness Including Issuance of Cash Deposit Certificates by Bank

The secret fund warehouse ‘Chang’ storing slush funds of former presidents.

Mr. A first heard about ‘Chang’ from an acquaintance in April 2021. The acquaintance said, “There is a secret fund warehouse directly managed by former presidents,” and added, “A huge amount of gold bars and foreign currency are stored there.” Then he persuaded Mr. A by saying, “Investment funds are needed to cash out this ‘black money,’” and “If you invest 3 billion won, I will return 4.5 billion won in a week.”

When Mr. A was skeptical about the extraordinary expected profit, the acquaintance introduced him to the chairman managing ‘Chang.’ Mr. B (67) and Mr. C (52), whom he met that way, said, “We understand it’s hard to believe you can get a 50% profit in just one week,” and “Since it’s not a small amount, we will have the bank issue a cash custody certificate,” actively encouraging Mr. A to invest.

A few days later, Mr. A met Mr. B and Mr. C and visited a bank, where he was actually told that issuing a cash custody certificate was possible. Thinking he could make a large sum of money, Mr. A gathered all the available cash he had, as well as from his family and acquaintances, to make 3 billion won. Then, he went to the bank again with Mr. B and Mr. C, received the cash custody certificates, and invested all the money. Because the bank issued the cash custody certificates, he never suspected it was a scam.

However, even after the promised week passed, neither the profits nor the principal were deposited, and when Mr. A visited the bank, the investment money had already disappeared. Mr. B and Mr. C were also unreachable. After this situation continued for over a year, Mr. A finally realized he had been scammed. The bank had only issued the cash custody certificates assuming Mr. A was simply investing in Mr. B and Mr. C’s business. Ultimately, in August 2022, Mr. A filed a complaint with the police against the group.

The Economic Crime Investigation Team 3 of the Anti-Corruption and Economic Crime Investigation Division at the Gyeonggi Northern Provincial Police Agency conducted a long and intensive investigation into five people, including Mr. B, Mr. C, and two recruiters. However, since most of Mr. A’s 3 billion won was in checks, tracking the flow of funds was difficult.

It took one year and four months just to grasp the outline of the crime and apply charges to the group. On December 27 last year, the police arrested Mr. B and Mr. C on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes. The other three, including the recruiters who scouted victims, were sent to prosecution without detention on the same charges. The Uijeongbu District Prosecutors’ Office Goyang Branch, which took over the case, also indicted all of them on the same charges on January 18 this year. The trial, which began in February, is scheduled for a first-instance verdict on December 13.