The country's largest stock fraud ring, which deceived investors by claiming they could earn 'up to 500% returns' and embezzled approximately 20.8 billion KRW, has been handed over to the prosecution.
On the 8th, the Cyber Investigation Division of the Seoul Metropolitan Police Agency announced that they had arrested and sent to prosecution 11 individuals, including a man in his 30s identified as the ringleader A, branch managers directly under the headquarters, and sales agents, on charges of unfair trading practices and fraud. Additionally, 92 others were sent to prosecution without detention.
They are accused of establishing a shell company without financial investment business authorization from July 2020 to October 2022 and promoting on social networking services (SNS) that 'unlisted stocks will yield 300-500% returns once listed,' thereby defrauding 580 investors of a total of 20.8 billion KRW.
Operating primarily from their headquarters in Incheon managed by A, they had managers in a total of 11 branches across regions including Gangnam, Songpa, Janghanpyeong, and Geumcheon in Seoul, moving in an organized manner. Internally, they communicated only via Telegram and used aliases, paying close attention to security.
False corporate information text message sent by Il-dang to investors. Provided by Seoul Metropolitan Police Agency
They distributed the criminal proceeds to each branch according to settlement ratios. The police estimate that the total damage, including hidden victims who have not filed complaints, could reach 141 billion KRW (approximately 6,700 victims).
The police sequentially arrested and detained the ringleader and branch managers and continued to apprehend other members of the organization. They also seized and preserved assets worth approximately 3.9 billion KRW, including real estate, vehicles, and deposit claims acquired by the suspects before prosecution.
A police official stated, "We have identified the reality of the country's largest unlisted stock investment fraud group that has been continuously committing fraud against unspecified masses online for years and arrested all members involved. We will continue investigations into victims who have not yet realized they have been defrauded and have not reported the crime."
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