Former Representative of Parasite Film Investors
Arrested on Suspicions of Embezzling Over 100 Billion Won in Investment Scam
The former head of an investment advisory firm, which reaped profits from investments in films such as Parasite and Hero, has been arrested on charges of a Ponzi scheme fraud amounting to over 100 billion won (approximately $84.6 million).
According to the police on the 31st, the Financial Crime Investigation Team of the Seoul Metropolitan Police Agency obtained an arrest warrant the previous day for Mr. Eom, 41, the former CEO of investment advisory firm C, on charges of fraud and similar receipt of funds under the Aggravated Punishment for Specific Economic Crimes Act.
Mr. Eom is accused of defrauding a total of 47 victims of approximately 107.5 billion won (roughly $91.1 million) by deceiving them into believing they could profit through unlisted stock margin trading from June 2018 to October last year.
He used the ‘Ponzi scheme’ method, which involves repackaging other investors’ money as profits. Mr. Eom reportedly promised up to 5% monthly returns and received investments of over 10 billion won (approximately $8.5 million) per person.
In July, the police sent investigators to Mr. Eom’s residence in Goyang City and the office of Company C to check related materials.
Investigations revealed that Mr. Eom had used his experience investing in successful movies since 2013. The police believe that after stepping down as the head of the company in 2021, he acquired another business consulting firm and continued investing before committing the crime.
The police plan to send seven accomplices, including a female professional golfer who committed fraud with Mr. Eom, to the prosecutor’s office without detention.
Earlier, the Financial Intelligence Unit (FIU) detected suspicious financial transactions between a corporation and Mr. Eom’s account in April and notified the police.
The police launched an investigation in conjunction with multiple complaints. They continued the investigation after searching the office of the investment advisory company and Mr. Eom’s residence in Ilsan, Gyeonggi Province, in July.
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