Recruited Young Investors via SNS, Failed to Pay Returns
Over 320 Victims, Damages Estimated at Approximately 96 Billion Won
The head of an art brokerage firm, who attracted young investors by promising high returns and then embezzled large sums of money, has been referred to the prosecution.
The Gangnam Police Station in Seoul announced on the 25th that on the 19th, it had detained and referred Eom, the head of ArtContinue, to the Seoul Central District Prosecutors' Office on charges of fraud and illegal fundraising under the Act on the Aggravated Punishment of Specific Economic Crimes.
Eom is accused of promoting "Art Tech" (art + finance) and recruiting investors through social networking services (SNS), promising to pay monthly returns of 12 to 16 percent on the principal. He then allegedly absconded without paying the promised returns.
The police have received complaints from more than 320 people so far, and the total amount of damages is estimated to be approximately 96 billion won.
In addition to Eom, the police have booked more than 50 recruiters involved in attracting investors and are investigating their involvement in the crime and the possibility of additional damages.
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