Employees and executives of Happy Money INC, the issuer of Happy Money gift certificates whose use was suspended due to delayed settlements by TMON and WEMAKEPRICE, have been referred to the prosecution without detention.
The police sealed the office during a raid on Happy Money ENC in September last year. Seoul Metropolitan Police Agency
On the 26th, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency announced that it had referred seven employees and executives of Happy Money INC to the prosecution without detention on charges including fraud, violation of the Electronic Financial Transactions Act, obstruction of official duties by fraudulent means, and evasion of compulsory execution.
According to the police, despite knowing in June and July last year that it would be difficult to continue the Happy Money gift certificate business due to the poor financial conditions of TMON and WEMAKEPRICE, the suspects sold gift certificates to 64,353 victims and misappropriated approximately 141.8 billion won. They are also accused of hiding corporate funds by transferring 5 billion won to accounts of other corporations.
Since 2014, they had manipulated the outstanding balance of the online Happy Money gift certificate, "Happy Cash," to keep it below 3 billion won, which was the exemption threshold for registration as an electronic financial business with the Financial Services Commission at the time, thereby evading financial authorities' regulations. They also submitted false documents to the prosecution, according to the investigation.
A police official stated, "Gift certificate companies operate on a business structure in which the purchase funds from later buyers are used to settle payments for earlier buyers. Therefore, we urge consumers to check the financial status of the company and whether it has payment guarantee insurance before purchasing gift certificates."
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