"IPO Shares for Institutional Investors"... Investment Leading Scam Room Impersonating Securities Firm

A group that operated an investment leading scam room in Bangkok, Thailand, by impersonating a domestic securities firm has been handed over to the prosecution.

The police arrested a group involved in investment leading scams in Bangkok, Thailand, on August 21 last year and repatriated them to South Korea. Seoul Metropolitan Police Agency

On May 9, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency announced that it had referred 11 members of the investment leading scam group to the prosecution on charges including violation of the Act on the Refund of Damage from Telecommunications-based Financial Fraud, organizing a criminal group, and joining a criminal group. Among them, nine individuals?including the chairman, the main leader, team leader, headquarters chief, scenario director, and four other members?were referred while under arrest. One account transferor and another main leader, who was already detained for a different crime, were referred without detention.

According to the police, between August 16 and August 21 last year, the group impersonated a domestic investment securities company and defrauded 10 victims of approximately 39 million won.

After setting up an office in Bangkok, Thailand, in April last year, the group obtained 2.84 million domestic phone numbers and created fraudulent websites. They then operated the scam room, deceiving victims by claiming they could allocate IPO shares reserved for institutional investors. During the period of the crime, the group demonstrated meticulous planning by living together in a Bangkok accommodation, restricting members from leaving, and controlling their mobile phones. In addition, two members who were referred without detention?the other main leader and the scenario director?passed on criminal techniques they had learned while working with a scam group running an investment leading scam in Cambodia.

The police, in cooperation with the Thai authorities, arrested nine members, including the team leader and other members, in Bangkok on August 21 last year, just six days after the crime began. They also tracked down the chairman and two main leaders of the scam room who were in South Korea. The police also discovered that the chairman of the scam room participated in a voice phishing crime worth 600 million won in October 2023 by impersonating a Financial Supervisory Service employee and laundered the proceeds, and are currently investigating these allegations. One member escaped after being repatriated to South Korea and has been placed on the wanted list.

Additionally, the police secured 22.76 million won of victim funds that had not yet been withdrawn and returned 22.61 million won of this amount to the victims.

A police official stated, "We will continue to pursue and strongly punish criminals who commit organized fraud against the public," and urged, "Please remember that there are no investments that guarantee both principal and high returns, and report any damages to the police promptly."