10 executives of a cosmetics company in Gangnam, Seoul, were arrested and banned from leaving the country on charges of multi-level financial fraud.
According to SBS coverage, the Songpa Police Station in Seoul has arrested and investigated 10 executives, including a 57-year-old man A, the company's representative, and the head of the department, on charges of fraud and receiving similarities.
They recruited about 5,000 members for about 8 years from 2014 and received 1 trillion won.
The so-called 'five-month marketing', in which 5% of the investment is paid as an allowance for four months from the time of investment, and the principal is returned in the fifth month.
Various age groups, from 30s to 80s, poured out old-age funds and jeonse funds with a high rate of return.
However, from April of this year, payments were stopped due to worsening business conditions, and members who did not receive the promised money started filing lawsuits and lawsuits from last month.
The police raided the headquarters, factories, and the CEO's home and secured evidence.
In an interview with SBS, the company denied the accusation of receiving similar accusations, saying, "The head office has never instructed us to preserve the principal and pay a fixed interest rate."
The police plan to confiscate and collect the proceeds of crime soon.
More details will be provided in <SBS 8 News> shortly.