sabiz

A group of individuals who posted fake investment products on an internet homepage and scammed over 895 investors out of more than 50 billion won have been referred to the prosecutor’s office.

On the 26th, the Yeongdeungpo Police Station in Seoul announced that two suspects, including A, had been arrested and sent to prosecutors on charges of fraud.

The suspects posted false P2P loan products on their website to attract investors, leading to fraudulent activities. P2P lending allows multiple individual investors to pool funds and lend them to individuals or businesses (borrowers) in need of money. P2P companies are required to disclose details such as the loan purpose, collateral, repayment plans, and expected returns on their websites.

Over the course of 1 year and 4 months, a total of 895 investors were deceived by the fake loan products, resulting in a total loss of 50.6 billion won. The suspects had been indicted for similar charges at the Seoul Western District Court, where they were awaiting trial before they fled and were later captured by the police.

A police official stated, "It is difficult to provide specific details on the modus operandi, and it appears that recovering the funds will be challenging."