In Just 17 Months, Multi-Level Marketing Organization Defrauds 22,000 People of 600 Billion Won

[Financial News] In just 17 months, a Live Commerce-based cosmetics multi-level marketing organization that defrauded more than 22,000 victims of 600 billion won has been brought to trial en masse.
The Criminal Division 4 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jeong-hwa) announced on the 9th that between August last year and the 2nd of this month, it indicted 15 executives of J Company, a multi-level marketing organization, on charges of aggravated fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, violation of the Act on Regulation of Conducting Fund-Raising Business Without Permission, violation of the Door-to-Door Sales Act, and fraud.
According to the prosecution, the suspects promised substantial profits from selling cosmetics through Live Commerce and guaranteed a 20% return on investment, thereby deceiving approximately 22,000 people and collecting a total of 600 billion won.
Prosecutors determined that the crime, which generated a large number of victims nationwide in just 17 months, was a serious illegal multi-level marketing case that devastated household finances and disrupted financial order.
The prosecution stated that, through close cooperation with the police, they thoroughly tracked the criminal proceeds obtained illegally by the suspects and are currently taking necessary measures for victim restitution.
The Seoul Central District Prosecutors' Office, in collaboration with the Special Investigation Team for Mass Victim Crimes dispatched by the Supreme Prosecutors' Office, is focusing on investigating large-scale and high-profile illegal fund-raising and multi-level marketing cases, while also making every effort to recover criminal assets and provide restitution to victims.
kyu0705@fnnews.com Kim Dong-gyu Reporter