Shell companies set up and funds laundered through virtual assets... investment scam ring behind 14.2 billion won fraud busted

[Financial News] Police have apprehended numerous members of an investment-advice scam ring suspected of operating out of China and swindling 292 people out of 14.2 billion won.
According to police on the 5th, Seoul Gangseo Police Station apprehended 13 suspects on charges including fraud and took five of them into custody.
They are suspected of using mule accounts in the names of shell corporations to lure victims through messaging apps and other channels with promises of high-return investments, and then steal their investment money, from December last year through March.
Investigators found that the criminal organization divided responsibilities among account openers, account managers and money launderers, and carried out the crimes in an organized manner. In exchange for 5 million to 7 million won per account, the account openers established shell corporations, opened accounts in the companies’ names and handed them over to the organization. The account managers oversaw those accounts and transferred victims’ funds across multiple accounts, while the money launderers sought to evade the tracking of funds by converting the money into virtual assets.
After receiving a report from one of the victims in March, police analyzed the financial transaction records of accounts used in the crime and launched an investigation. They combined related cases reported to police stations nationwide and identified the group members, including the account openers, managers and money launderers.
For suspects who fled overseas, police took measures including seeking red notices through the International Criminal Police Organization and imposing administrative restrictions involving their passports, while pursuing the investigation in cooperation with international partners. Police apprehended 13 members one after another and have so far completed pre-indictment asset-preservation measures covering about 126 million won in identified criminal proceeds.
Police plan to continue tracking down members of the organization who remain at large overseas, while analyzing additional fund flows and pursuing the recovery of criminal proceeds.
A police official said, "If the name of the investment company does not match the name on the account receiving the deposit, or if someone repeatedly asks for additional investment money by dangling the prospect of high returns, you should suspect fraud," and urged the public, "If you suspect you have been victimized, report it to the police immediately."


[email protected] Seo Ji-yun Reporter