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A fraudulent act of a cosmetics company that has raised over 1 trillion won in investment in a multi-step method is being revealed. It seems that the money was paid to the previous person with the money of the person who invested it later, but the police have started a full-scale investigation as complaints from members have recently followed.



Reporter Han Seong-hee reports exclusively.



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Famous girl group members appear as models, and promotional events are held in various parts of the world, including China and Vietnam.



This is a promotional video for a cosmetics company headquartered in Gangnam, Seoul.



The company recruited members in a multi-step method, and '5% of the investment is paid as an allowance for four months from the time of investment. The self-proclaimed 'five-month marketing' method of returning the principal in the fifth month was introduced.



Nearly 5,000 members were recruited with a high rate of return.



[Mr A/investor: My mother put in about 300 million won, and made a negative account with all of her old-age funds… .]



Members were told that if they were paid, they would buy the product and leave high ratings and praise reviews.



[Mr. A/investor: 'How much to buy', 5 stars for each purchase item, and all were good reviews.]



Over the past 8 years, the company has raised over 1 trillion won in investment.



However, since April of this year, multi-level financial fraud has been revealed.



A Ponzi scheme that pays interest and dividends with the money of new investors is suspected.



Complaints continued from members who did not receive the promised money.



When the police raided the headquarters and the company's factory, it was revealed that there had never been any cosmetic production, but the company said it was consigned production.



In addition, the headquarters did not promise principal guarantees and yields, and insisted that it was done at the branch level.



However, the police arrested 10 executives, including the CEO and general manager, and banned them from leaving the country.



The CEO of the company is also suspected of manipulating the stock price of 10 billion won.



After acquiring a KOSDAQ-listed company, they mobilized members to raise the stock price.



[Mr B/investor: The company is doing so well and the stock has grown, but you, members, should buy it… .] The



stock price rose sharply and then plummeted, and is currently in a trading halt.



The police are planning to apply for an arrest warrant for the company's representative soon and begin the process of confiscation and collection of the proceeds of crime.



(Video coverage: Kim Se-kyung, Seol Min-hwan, Kim Nam-seong, video editing: Park Jin-hoon, CG: Park Dong-soo, VJ: Kim Jong-gap)