Returned Home After 30 Years... Even Funeral Expenses Were Taken [Analysis of 126 Petitions on the Old 'Coin Scam']

Analysis of 126 Petitions on the Old 'Coin Scam'
①(Part 1) Allegations of Involvement in Multi-Billion Won Fraudulent Investment
Ado International CEO Lee, 15 Years Prison in 1st Trial
3 Others Acquitted in Related Case

Editor's NoteThe Ado International coin scam, known as a "4.4 trillion won Ponzi scheme," is considered a textbook case of multi-level marketing crime in South Korea. A total of 36,000 people were defrauded, with a significant number of elderly victims. In July, the main perpetrator, Mr. Lee, was sentenced to the maximum 15 years in prison for fraud, marking an encouraging verdict. In response, this publication conducted an in-depth analysis of the "126 handwritten petitions for severe punishment" sent by Ado International scam victims to the Seoul Central District Court. Through these handwritten petitions, we aim to deeply explore the crises and suffering that "similar receipt and multi-level marketing fraud" cases?often headline news?bring to the concrete, individual lives of victims. We also urgently review the issues of recovering criminal proceeds and confiscations related to similar receipt fraud crimes across various levels.

Handwritten petition written by victim Kwon Hyun-seon of Ado International. Photo by Korea Fraud Prevention National Association

"I am tormented by debt and cannot even live like a proper person." The elderly victim’s shaky handwriting revealed desperation. Ms. Kwon Hyun-sun (pseudonym), an Ado International scam victim residing in Bucheon, Gyeonggi Province, wrote this sentence in her petition for severe punishment. While her husband was undergoing treatment for liver cancer, she was deceived by the Ado International scam and took out a credit card loan to invest 50 million won, losing all the money.

The tragedy of "economic exploitation and fraud" experienced by Ms. Kwon is something that any elderly person vulnerable to financial knowledge could suffer. When cognitive and judgment abilities decline, it becomes easy to fall prey to exploitation and fraud. Keywords like "retirement funds" and "loneliness" are the bait for scammers.

Among the 320 people who participated in the Ado International lawsuit, the age distribution was ▲0.3% in their 80s ▲11.87% in their 70s ▲43.75% in their 60s ▲29.68% in their 50s ▲8.75% in their 40s ▲4.37% in their 30s ▲1.25% in their 20s, showing that those aged 50 and above overwhelmingly dominated.

Many victims were in dire circumstances, worrying about retirement, hospital bills, and living expenses. Ado International recruiters exploited these vulnerabilities. They coaxed victims by claiming that even if they were too ill to work, had overwhelming hospital bills, or faced ever-increasing retirement costs in the era of longevity, investing in Ado International could cover these expenses. Targets included ordinary working-class people who dreamed of a modest life but lived just a little short of it: a breadwinner with an autistic son, a full-time housewife with three children, a single mother who lost her husband, and a family with a daughter who suffered a cerebral hemorrhage.

Victims’ Cries: "A Hellish Old Age"

"The poorer and more desperate people are, the more they fall for temptations like me, grasping at any lifeline. I blame myself deeply. Though I was deceived, I lacked the insight to identify those who deliberately intended to cheat, leading to today’s outcome." Victim Ms. Song Jeong-hwa (pseudonym) blamed herself. She regretted that the investment she made hoping for a better life only tightened the noose around her existence.

Petition for Severe Punishment Written by a Victim of Ado International. Photo by Korea Fraud Prevention National Association

Ado International deceived victims by promising a 200% monthly return on principal if they invested in AdoPay, their investment payment system. The scam group promoted a structure generating profits through 16 affiliates, including entertainment, interior design, construction, butcher shops, virtual assets, lumber, distribution, event planning, and sash industries. From February to July last year, they amassed 446.7 billion won in investments.

"I only wanted to help with hospital bills, but I ended up sinking into a quagmire I cannot escape." Ms. Lee Mi-jung (pseudonym), a mother of four in her mid-50s, sent multiple petitions with such content to the Seoul Central District Court handling the Ado International case. After separating from her husband, she raised a son diagnosed with a brain tumor alone, always struggling financially. Despite working herself to exhaustion, her situation did not improve. She even worked cleaning corpses. For her, the temptation of Ado International promising monthly returns equivalent to a month’s salary was hard to resist. "The pain is so severe I cannot sleep or eat, and sometimes I wish I would not wake up in the morning." Ms. Lee poured out her agonizing feelings in the petition, feelings she could not show in front of her son.

Petition for Severe Punishment Written by a Victim of Ado International. (Provided by Korea Fraud Prevention National Association)

Experts say investment education is essential to prevent digital financial fraud targeting the elderly. However, for low-income people whose daily labor is directly tied to survival, education is often seen as unrelated to making a living. Most elderly people, who have accumulated assets through labor, show little interest in investment education. This explains the continuous occurrence of financial scam cases targeting seniors. According to the Financial Supervisory Service, in the first half of last year, 36.5% of similar receipt complaints and 46.7% of voice phishing victims were aged 60 or older.

In the Ado International case, where many elderly victims were involved, individual losses were not large. However, the daily life victims must endure is far more painful. The older the victim, the harder it is to find reemployment and to recover from a life shattered by fraud. Mr. Lee Jeong-su (pseudonym), who introduced himself as "an elderly person in his mid-70s" in his petition, wrote, "Since encountering Ado International, I have been burdened with debt and am living a hellish old age."

No matter the amount lost, elderly victims inevitably must spend long hours working to recover. Even if they are lucky enough to find a job at an advanced age, most positions barely exceed minimum wage or are unstable part-time jobs. Ms. Jung Young-sook (pseudonym), 57, was even fired from her company after investing in Ado International. Having invested over 20 million won, she lamented, "I work as a restaurant server earning 2.2 million won a month to repay my personal rehabilitation debt. It may not be a large amount to some, but I have to work for two years to pay it off."

Petition for Severe Punishment Written by a Victim of Ado International. Photo by Korea Fraud Prevention National Association

Lost Vision from Stress of Fraud... Even a 77-Year-Old Korean Naturalized Joseonjok Was Victimized

Some victims developed chronic illnesses from extreme stress after discovering they had been scammed. Mr. Lee Geun-young (pseudonym) was self-employed all his life. He opened a neighborhood mart but had to close it due to the dominance of large supermarkets. He dreamed of a comeback running a small pizza shop but fell into Ado International’s trap. Now burdened with credit card debt, he works as a caregiver in the morning and as a disability activity assistant during the day to patch up his negative life. He wrote, "Since being scammed, I have developed macular degeneration from stress and am losing my eyesight. The future looks bleak."

The victim, Mr. Kim, is writing his innermost feelings, which he cannot even confess to his family, in a petition. Photo by Korea Fraud Prevention National Association

Ms. Park Eun-mi (pseudonym), who lived in Bangladesh for over 30 years, returned to Korea last year. She wished to spend her remaining years with family in her homeland. After hearing a recruiter’s explanation that depositing money for just one month would yield higher returns than bank interest, she impulsively transferred 100 million won, saved for her and her husband’s funeral expenses, into the recruiter’s account. The investment, started to avoid asking her children for money, boomeranged as a "twilight scam." "I couldn’t tell my husband for fear he would have a heart attack," Ms. Park said, expressing that she felt like sitting on a bed of nails every day.

Ms. Yoon Kyung-hwa (pseudonym), a 77-year-old naturalized Korean, works as a caregiver. Unfamiliar with Korean circumstances, she was tempted by the promise that investment could cover her husband’s hospital bills, which were difficult to manage with physical labor alone, and was scammed. After settling in Korea and working as a caregiver, she invested 40 million won she had painstakingly saved. After pleading that she needed money for her husband’s cancer medication, she barely recovered 5 million won.

Ms. Choi Hee-jung (pseudonym), who suffered a relatively large loss, ran a karaoke bar for over 10 years. When COVID-19 struck, social distancing made operating the karaoke bar practically impossible. Even during the government-mandated closure, she paid 5 million won monthly in rent and management fees. Crushed by debt, she was invited to invest by her husband’s friend of 20 years in June last year. "When I visited the office in Yeoksam-dong, Seoul, they explained the business was about buying used goods cheaply and exporting them to Southeast Asia to make profits. They even showed me a warehouse full of used products." At that time, many refurbished specialty stores and recycling shops were emerging nationwide. Ms. Choi invested 120 million won, combining loans secured by her store and 50 million won borrowed from her daughter, but did not recover a single penny.

Petition for Severe Punishment Written by a Victim of Ado International. Photo by Korea Fraud Prevention National Association

Victims, unable to even afford lawyers, pleaded in their petitions for the harsh punishment of the main perpetrators and key accomplices. Mr. Lee Geun-young said regarding the multi-level marketing scam, "Fraud should not just leave damage but also leave punishment; scam groups must be severely punished to instill this awareness." Despite these appeals, on the 16th, the Seoul Central District Court sentenced Mr. Ham, one of the top recruiters of Ado International, to only five years in prison. Three others indicted alongside Mr. Ham on similar receipt charges were acquitted.