Four executives, including the CEO of Ash7, a cosmetics company under police investigation, were arrested on charges of raising more than 1 trillion won in investment in a multi-step method.
The Seoul Eastern District Court arrested four people, including a 57-year-old man named Um and three executives, who are accused of fraud and similar reception around 10:30 pm today (20th).
The court ruled that it was necessary to detain, saying, "There is a risk of escape."
Earlier, they appeared at the courthouse around 10:30 am today and were questioned before arrest.
When the interrogation took place, dozens of victims outside the courthouse held up hand signs that read "Take responsibility for my old age" and demanded arrest.
Victims flocked to those who were tied up with ropes after the screening at around 3 pm, which made a lot of noise.
They are accused of hoarding about 1.2 trillion won by tricking thousands of people into making them look like they're going to borrow money.
From the time of the investment, 5% of the investment is given as an allowance for four months and the principal is returned in the fifth month, so-called '5-month marketing' was used.
It was investigated that they bought a building in Songpa-gu, Seoul, set up its headquarters, and even built a factory that had never actually been operated in Incheon.
By using celebrities as cosmetic models, they even pretended to be successful in sales all over the world.
The Seoul Songpa Police Station, which has received complaints from victims across the country, has arrested and is investigating dozens of other people who participated in the fraud, in addition to the officers arrested this time.
Last week, the Eastern District Court confiscated and collected about 30 billion won from their criminal proceeds.
The police are additionally pursuing the confiscation and collection of proceeds from crime.