Approaching Volunteer Organizations Nationwide to Solicit Investments
2,200 Victims Targeted by the Scheme
Dozens of Criminal Group Members Stationed in Closed Cambodian Hotel
A group posing as a volunteer organization and pretending to run an "AI-powered eco-friendly agriculture business" has been indicted for fraudulently collecting 215 billion won in investments.
On the 19th, the Criminal Division 4 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Jung Hyun) announced that four individuals, including the domestic ringleader surnamed Jung and members surnamed Jeon, Ahn, and another Jung, had been indicted and detained on charges of organizing, joining, and participating in a criminal organization, fraud, and violating the Act on Regulation of Conducting Fund-Raising Business Without Permission.
According to prosecutors, since January of last year, these individuals organized a criminal group based in a closed hotel building in Cambodia, established a corporation in Korea for their scheme, and collected 215 billion won in investments from victims.
The domestic ringleader, Jung, stayed in Cambodia and spent several months planning the crime with Chinese nationals. He set up a call center in the closed hotel and assigned dozens of members of Chinese and Myanmar (Chinese diaspora) nationality to prepare for the operation.
Inside Cambodia, the group members pretended to be overseas employees of Company G, which they claimed was headquartered in the UK. They approached Korean volunteer organization members via social media, wore hats and vests bearing Company G’s logo to take photos as proof of volunteering, and provided sponsorship funds, all as part of a sophisticated strategy to promote the company and build trust with the volunteer members.
Jung established an illegal investment-receiving corporation in Korea under the guise of a volunteer organization, became the CEO of Company G’s Korean branch, and falsely claimed that the company was receiving large-scale sponsorship from its UK headquarters. He then encouraged volunteer organization members across the country to invest in the so-called "AI-powered eco-friendly agriculture business."
During this process, Jung incentivized investment by offering high-end cars and gold bars to members based on their investment recruitment performance. He also gave interviews in weekly current affairs magazines, stating, "My corporate philosophy is to create a world where good people become wealthy," demonstrating bold behavior.
However, within less than a year, Jung collected more than 215 billion won in investments from 2,200 victims and then closed the office. It was revealed that Company G, created by Jung, developed and distributed a sophisticated application for the purpose of raising investments, established trust with potential investors early on by providing sponsorship funds, and promoted itself as a reputable company.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
