Former Midas Partners CEO Sentenced to 16 Years in Second Trial for 350 Billion Won Fraud

Former CEO Seo Seokhyeon, who operated the illegal investment firm Midas Partners and committed fraud amounting to approximately 350 billion won, has received a heavy sentence in the appellate court, following the initial trial.

On May 16, the Seoul High Court’s Criminal Division 7 (Presiding Judge Lee Jaegwon) sentenced former CEO Seo to 16 years in prison, the same as the first trial, for violations of the Act on the Aggravated Punishment of Specific Economic Crimes (Fraud) and the Prohibition of Unregistered Solicitation Act. The court also ordered the forfeiture of 98.4 billion won. The bench dismissed Seo’s bail application, which had been filed in December 2024.

Kim, who served as the executive vice president and was indicted alongside Seo, was sentenced to five years in prison, while Hwang, the finance officer, received a seven-year sentence. Both received the same sentences as in the first trial.

However, the appellate court overturned the first trial’s acquittal regarding violations of the Act on the Regulation of Unregistered Solicitation, stating that sentencing was redetermined because the amounts defrauded from two additional victims, which were not considered in the first trial, had now been specified.

Additionally, appeals by three other company associates were dismissed, and their original sentences of one to four years in prison were upheld. All 22 claims for compensation orders filed by Kim and others against Seo were dismissed.

Prosecutors alleged that from September 2018 to June 2021, Seo and his associates defrauded 5,316 victims of 360 billion won, and indicted them in December 2021. Seo was accused of establishing Midas Partners, setting up regional branches nationwide, and luring victims with promises of a 2% monthly return. It was revealed that Midas Partners did not generate any actual profits, and that Seo and others personally used the invested funds.

The first trial court recognized 5,288 individuals as victims and acknowledged the defrauded amount as 352.8 billion won. The court stated, "The defendants established a nationwide organizational structure and enticed victims with high interest rates. By using a Ponzi scheme, they deceived over 5,000 people and embezzled 350 billion won, causing enormous financial harm."