Former Securities Firm Employee Promised "5% Monthly Returns"
Defrauded 11 Victims Using Ponzi Scheme
A former securities firm employee has been arrested by police for defrauding investors of hundreds of billions of won by promoting so-called "employee-only investment products" that promised high returns.
The Anti-Corruption and Economic Crime Investigation Unit of the Daegu Metropolitan Police Agency announced that it had arrested former securities firm employee Ms. A (a woman in her 50s) on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.
According to the police, from November 2022 to August 2025, Ms. A leveraged her experience at a securities firm to induce customers and acquaintances to invest by telling them, "If you invest in employee-exclusive investment products, corporate short-term loan products, or initial public offerings, you will receive a 3-5% return within a month."
Through these methods, it was found that she defrauded a total of 24.7 billion won from 11 victims.
However, the investigation revealed that the "employee-exclusive investment products" mentioned by Ms. A did not actually exist. Ms. A received investment funds into her personal account and, without making any real investments, continued her scheme by paying some victims returns using money from other victims-a so-called "Ponzi scheme." A significant portion of the funds was used for personal expenses and living costs.
The police believe that there may be additional victims beyond those currently identified and are expanding their investigation, focusing on the flow of funds. A police official stated, "We will respond strictly to serious economic crimes that exploit the trust in financial sector employees and work to establish a sound financial order."
The police also warned investors to exercise particular caution, noting that similar crimes are on the rise, in which individuals impersonate securities firm employees or financial sector workers, lure victims with promises of high returns, induce deposits into personal accounts, and then misappropriate the funds for personal use.
Meanwhile, this case has been made public as an exception under public relations rules due to the public interest in preventing the recurrence and spread of similar crimes. It was also specified that the allegations against the suspect have not yet been confirmed as criminal facts by a court of law.
This incident demonstrates how the title "securities firm employee" can transform personal trust into a dangerous illusion. The most dangerous sign is not the promise of high returns, but the moment investment funds are transferred into a personal account. Even if the explanations for financial products are complicated, the procedures must remain transparent.
The more phrases like "products known only to insiders" or "guaranteed short-term returns" are repeated, the more investors should pause and double-check. This case serves as a reminder that financial fraud disguised as trust almost always begins with those closest to us.
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