A Bogus Investment Company Appropriate 7.4 Billion Won

The police exposed that a bogus investment company has gathered billions of won from about 500 people, saying that it would give out small apartments and expensive cars through drawing lots and guarantee more than 40% of annual interest.

On the 17th, Seocho police arrested four persons including Park(34), the CEO of Todaywin corporation and Kang(35), the director of Seonrung branch on suspicion of violation of law regulating disguised receiving and booked eight persons including the accounting clerk Seon(28) without physical restraint on a charge of the same violation.

According to the Police, Park and other suspects established a company disguised as a real estate auction company last July and gathered about 7.4 billion won from about 500 people (13,056 accounts) and appropriate the money. The company lured people, saying that if they invest from 500 thousand won to 70 thousand won per one account, they will be returned 1.2 million won after twelve months and it will give out small apartments and Grandeur XG through drawing lots.

The company was found to give 5 digit lottery tickets to the investors and said it will give to winners small apartments equivalent to 100 million won every first week of a month, and Grandeur XG every second, third and fourth week of a month.

Actually, the suspects gave 17 million won to 4 people who won the small apartments and 8.7 million won to 16 people who won the Grandeur XG and promised to pay their allotment.

The police explained that the suspects also guaranteed annual interest of 43%, weekly amount 2500 won for each account from the first month to the sixth month, 10 thousand won from seventh to twelfth month and 30 thousand won from the twelfth to the twentieth month.

The police also expect the number of victims is likely to increase as 7.4 billion won that the suspects received ran out and are investigating further.

Hoon Lee dreamland@donga.com