China-Based Group Arrested for Investment Scam, Swindling 14.2 Billion Won

Five members arrested and detained, eight others booked without detention
292 victims defrauded with promises of high returns
Shell companies used to open bank accounts under borrowed names

Police have arrested a group that allegedly ran a fraud scheme worth tens of billions of won, using promises of high returns on investments to lure victims. The group was based in China.

Seoul Gangseo Police Station said on November 5 that it had arrested and detained five people, including A, on suspicion of fraud and other charges, and booked eight others without detention.

In June, officers from the investigation department of Seoul Gangseo Police Station tracked suspects riding motorcycles while working undercover.

According to police, A and the others are suspected of inducing people to invest by promising high returns through online messaging services and other channels from December last year through March this year, then defrauding 292 victims of 14.2 billion won.

A and the others operated in an organization they established in South Korea and overseas, working out of an office in China set up by an unidentified Chinese ringleader. They divided up roles, including recruiting people to open accounts, managing accounts and laundering money. The account recruiters allegedly received 5 million to 7 million won per account, set up shell companies, opened accounts in their names and handed them over to the organization. The account managers oversaw those accounts and dispersed the victims' money among multiple accounts, while the money launderers allegedly concealed the flow of funds by converting them into virtual assets, police said.

Police launched an investigation after receiving a victim's report in March and analyzing financial transaction records from accounts used in the crime. They combined related cases reported to police stations nationwide and identified the members of the organization.

For suspects who fled overseas, police issued Interpol Red Notices and imposed administrative restrictions on their passports, among other measures. They pursued the suspects and booked all 13 members of the organization in succession. Police have so far applied for pre-indictment preservation of forfeiture for 126 million won, part of the criminal proceeds identified to date.

Police plan to work with authorities overseas to track down members of the organization who remain at large abroad, while continuing to trace and recover criminal proceeds that have not yet been recovered. A police official urged the public to suspect fraud if the name on an investment company's account differs from the company's name or if they are repeatedly asked to make additional investments after being promised high returns. The official added, "If you become a victim, please report it to the police immediately."

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