"Guaranteed High Returns": Kingdom of Cambodia-Based Crime Syndicate That Swindled 42.2 Billion Won Completely Dismantled

[Financial News] A criminal syndicate based in the Kingdom of Cambodia, which deceived victims out of approximately 42.2 billion won by luring them with promises of high-return investments, has been apprehended by the police. The group systematically divided roles among call center, Bank Account Distribution Team, and Money Laundering Team to carry out their crimes.
The Cyber Investigation Division of the Seoul Metropolitan Police Agency (SMPA) announced on the 4th that it had arrested 129 individuals, including ringleader Mr. A, who committed investment fraud based in the Kingdom of Cambodia, and referred them to the prosecution last month. Nineteen of them have been detained.
During a search of Mr. A's residence and those of his associates, police discovered criminal proceeds totaling 788.92 million won. The court approved a pre-indictment preservation order for these assets.
According to the police, from January to November last year, Mr. A's organization deceived 220 victims out of a total of 42.2 billion won by claiming through online social media that 'following their investment advice would guarantee high returns.'
The organization operated with a strict division of labor, including a call center (fraud execution team), CS Center (fund management team), Bank Account Distribution Team, and Money Laundering Team. The group was structured as a pyramid, with Mr. A at the top, team leaders beneath him, and team members below them. Direct communication between teams was blocked except through the ringleader.
Mr. A directed the entire operation while moving between Korea and the Kingdom of Cambodia. The call center team, based in the Kingdom of Cambodia, approached victims under the guise of investment guidance or romance scams, luring them to fraudulent investment websites. The CS Center immediately transferred funds received from victims to secondary accounts or delivered them to the Money Laundering Team.
The Money Laundering Team used virtual asset exchanges and gift certificate companies to launder and cash out the money, which was then delivered to the ringleader. The Bank Account Distribution Team registered fake corporations and opened large numbers of corporate accounts for use in the scheme.
The investigation began when Mr. B, a member of the Bank Account Distribution Team who had traveled to the Kingdom of Cambodia to deliver accounts, escaped after being assaulted and reported the incident to the police.
Based on the informant's testimony and financial data analysis, police identified the organizational structure and arrested Mr. A, who was in hiding, in January this year. At the scene, officers seized 167 million won in cash, six bankbooks, nine burner phones, and four OTP devices.
It was revealed that Mr. A recruited his older brother, Mr. C, and nephew, Mr. D, as key executives to sustain the operation over an extended period. Mr. C and Mr. D served as team leaders of the CS Center and call center, respectively, and are currently on the run in the Kingdom of Cambodia. Police have obtained arrest warrants for them, invalidated their passports, and requested a red notice from the International Criminal Police Organization (INTERPOL).
Mr. A's group also exploited accounts opened in the names of hearing-impaired individuals as so-called 'safe accounts.' Most of the seized accounts were registered under the names of hearing-impaired persons.
Police are currently coordinating with authorities in the Kingdom of Cambodia to extradite 15 suspects who remain at large overseas.
A representative from the SMPA stated, "We will continue to strengthen cooperation with overseas investigative agencies and financial authorities to eradicate cyber financial fraud, and will do our utmost to recover damages by swiftly freezing and confiscating criminal proceeds."
jyseo@fnnews.com Seo Ji-yoon Reporter