Group and Individual Complaints Filed One After Another by Victims
Recently in the Gwangju area, there have been a series of group and individual complaints filed by victims who were deceived by a Ponzi scheme (multi-level financial fraud) company that promised "a 10% return on investment every month."
According to the Gwangju Police Agency and Bukbu Police Station on July 10, the police launched an investigation after receiving group and individual complaints on July 7 requesting punishment for the CEO and executives of "U Company," based in Changwon, South Gyeongsang Province, on charges of fraud.
The complaint stated that executives who introduced themselves as "2~3 Star" and headquarters managers of "U Company" attracted investors by promising "to pay 10% of the investment amount once a month for five years." However, investors were unable to recover their principal or any promised returns, and the platform has since shut down.
It was found that U Company assigned the "Star" rank to those who brought in a certain number of investors and invested a significant amount of money.
One complainant claimed, "From September last year to March this year, I invested about 170 million won in several installments through the platform operated by U Company, but I only received 40 million won as returns and have not recovered my principal."
Previously, on June 27, a similar complaint was filed with the Gwangju Bukbu Police Station, but it was withdrawn on July 2 after the accused, who held a 2 Star rank, reached a settlement with the complainant.
U Company received investors' funds through its own app (platform) and reportedly recruited investors by promising that the monthly 10% return could be used for dental care, Korean medicine, stem cell treatments, overseas travel, and luxury car rentals.
The company also attracted victims by offering a "referral bonus" of 10% of the investment amount to existing investors who brought in new investors.
The platform suspended transfers in early July, citing "the chairman's arrest on stock and hospital-related charges," and changed its policy to allow only one withdrawal application per week, limited to 100,000 won each time.
Recently, executives have been persuading investors by claiming, "If there is even one complaint or accusation, the chairman will not be able to be released on bail, and it will be difficult to normalize the company."
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