"Guaranteed 50% Profit in Tuna Sashimi Business"... 60s Investor Lured to Pocket 2.8 Billion Won

A man in his 60s who founded a tuna sashimi delivery company and lured investors by promising guaranteed profits, collecting billions of won, was sentenced to prison.

On the 16th, Judge Kim Seon-beom of the Seoul Northern District Court Criminal Division 7 announced that he sentenced Mr. A (67), who is accused of fraud and violation of the Specialized Credit Finance Business Act, to one year in prison.

Mr. A is accused of establishing Company B, claiming to run a tuna sashimi delivery business without sufficient capital or business network, and deceiving multiple investors by falsely guaranteeing full investment returns and promising to open and operate franchise stores to obtain investment funds.

It was revealed that from around May 15, 2006, to around September 29 of the same year, Mr. A received a total of 2,890,180,000 KRW from victims through 1,184 transactions using a so-called 'Ponzi scheme' method, attracting short-term investments and using subordinated investments to repay principal and interest to existing investors. He is also accused of fraudulently creating false credit card sales slips without selling goods or providing services to raise 276,570,000 KRW in funds.

Mr. A advertised in newspapers with phrases like "Hope, Company B Grand Opening, Enthusiasm for the Success of Over 600 Business Operators," then lured investors by promising, "If you invest, you will receive your principal plus 50% profit." He also falsely claimed, "If you invest more than 30 million KRW, you can open and operate a franchise store," and "My son works at an investment company in the UK, and we have signed a consulting contract, so there is no problem with recovering the principal or distributing profits."

The court explained the sentencing rationale, stating, "The defendant fled during the investigation, the degree of involvement in the crime is not light, and the scale of the damage is large. However, considering that some of the damages were returned to the victims and that the crime appears to have been led by another suspect, we have taken these factors into account comprehensively."