Man Arrested for Defrauding Acquaintances of Over 900 Million Won in "Ponzi" Scheme

Prior Conviction Confirmed, Registered Address Also Different

The police have taken a man into custody who allegedly swindled more than 900 million won from acquaintances using a so-called "ponzi repayment" scheme.

The Gwanak Police Station in Seoul announced on the 13th that they have arrested Mr. A on fraud charges.

Gwanak Police Station, Seoul. Photo by Yonhap News Agency

According to the police, Mr. A is suspected of deceiving multiple acquaintances into believing he had the ability to repay loans, borrowing money from them since July 2021, and then using funds from new victims to pay off earlier debts, ultimately defrauding approximately 950 million won.

After receiving the case in November of last year, the police tracked Mr. A's movements by seizing bank accounts and analyzing financial transaction records, and apprehended him near a subway station in Gyeonggi Province on the 6th.

The police explained the necessity of Mr. A's arrest by citing his prior conviction for similar offenses and the fact that his registered address did not match his actual residence, raising concerns that he might flee.

However, it is reported that Mr. A partially denied the charges during police questioning.

The police plan to continue investigating to determine if there are additional crimes or further victims related to Mr. A.

This content was produced with the assistance of AI translation services.