Fraud Scheme Involving 10 Billion KRW Through Circular Financing... 50s Female Gang Arrested and Indicted [Economic Crime 24 Hours]

17 Victims... Crime Committed After Receiving 10 Million to 6 Billion Won Investment
One Fled When Arrest Hearing Scheduled... Apprehended After 2 Months

"You can make a 10-20% profit in just one week."

In November of last year, a woman in her 50s named Lee (alias) approached Jin-hwan Kim (alias), a man in his 50s living in Busan. Introduced by an acquaintance, Lee proposed a quasi-partnership to Kim, saying, "If you invest in the travel business, you can earn profits within a week." Although Kim was hesitant because it was a large sum of over 10 million won, he was tempted by the fact that his acquaintance was already making some gains. After consulting with his wife, he decided to try investing.

However, even after a week passed, Lee neither returned the principal nor paid any profits to Kim. Whenever Kim brought up the investment money, Lee avoided answering or stopped responding altogether. Growing anxious, Kim tried to contact her multiple times but could not meet her. The acquaintance who introduced Lee also did not know her whereabouts. Eventually, Kim filed a complaint with the police against Lee.

In February of this year, the Anti-Corruption Economic Crime Investigation Team 4 of the Busan Metropolitan Police Agency began investigating Lee and her accomplice Jin (a woman in her 50s). Although analyzing their bank accounts was challenging during the investigation, the police confirmed that both had prior convictions for similar crimes and focused on uncovering their criminal methods.

According to the police investigation, they recruited investors among acquaintances or acquaintances of acquaintances under the pretexts of fruit business, travel business, and electronics business. Using the same method as with Kim, they deceived people by promising "principal guarantee and 10-20% profit after one week." They showed photos of fruits or travel products, but all were fabricated.

The police confirmed that there were 17 victims ranging in age from their 20s to their 70s. Most were older adults in their 50s and 60s, similar in age to Lee and Jin. The amount invested per person ranged from 10 million won to as much as 6 billion won. From November 2022 to January of this year, the group collected a total of 10.2 billion won in investment funds using this scheme.

A significant portion of this money was used for so-called "Ponzi payments," paying returns to later investors, and the actual damage amount is estimated to be around 2 billion won. Lee and Jin spent all 2 billion won on repaying personal debts or living expenses, so no money was recovered.

Considering the method and scale of the crime, the police judged the offense to be serious and applied charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes in April, requesting arrest warrants. When the date for the pre-arrest hearing was set, Lee chose to flee. The police resumed efforts to locate her and eventually arrested and detained her after two months. Lee and Jin are currently on trial at the Busan District Court.

A representative of the Anti-Corruption Economic Crime Investigation Team at the Busan Metropolitan Police Agency said, "Investments that guarantee high returns should always be suspected. When large sums are involved, you must thoroughly investigate the business and not just focus on profits," adding, "You need to understand the specific profit structure and verify details more carefully."