A former member of the rock band Boohwal has been recognized as one in all 69 folks forwarded to prosecutors for involvement in a Ponzi scheme that collected greater than 200 billion gained ($150 million) from unlawful investments and stole 19 billion gained.
Police mentioned singer Kim Jae-hee, 54, who as soon as carried out as Boohwal’s fourth vocalist, took half in promotional actions that helped recruit victims.
In keeping with the Incheon Metropolitan Police Company on Sunday, Kim was amongst these despatched to prosecutors on expenses together with fraud and violations of associated legal guidelines.
Two ringleaders, a 43-year-old recognized as A and a 44-year-old recognized as B, had been arrested earlier, whereas Kim and 67 others had been booked with out detention.
Police mentioned A and B ran the operation from December 2022 to August 2024 out of their headquarters in Seoul’s Gangnam district.
They raised 209 billion gained from about 30,000 folks and stole 19 billion gained from 306 of them. The group lured traders by claiming that funding an internet shopping center enterprise would assure compensation of the principal and return 150 % of the funding over 300 days, paying 0.5 % every day. In addition they promised assured principal and 40 % curiosity for many who invested in a deliberate abroad financial institution.
Investigators discovered that the group created a three-tier “advisor-brunch-ambassador” construction and operated 35 branches nationwide to draw extra traders.
Kim, who was registered as a vice chair and inside director, used his public profile to go to branches, host enterprise briefings, and encourage folks to hitch.
Police mentioned Kim didn’t put money into the enterprise himself however attended occasions to market it and carried out songs. He acquired 100 million gained in wage and extra advantages together with a passenger automobile valued at 60 million to 70 million gained and gold objects value about 80 million gained.
Kim, the youthful brother of the late Boohwal vocalist Kim Jae-ki, reportedly instructed police he “didn’t understand it was a rip-off.” He carried out because the band’s vocalist within the Nineties.
The scheme collapsed when A and B may not pay supposed returns to earlier traders. Most victims had been of their 60s to 80s, investing quantities starting from 1 million gained to greater than 1 billion gained every. Some used most cancers therapy funds or dwelling redevelopment compensation cash, leaving their livelihoods in danger.
Police analyzed 40,000 transactions throughout 22 financial institution accounts utilized by the group and recognized 9.38 billion gained in prison proceeds, for which they requested pre-indictment preservation. “We imagine extra victims might come ahead,” a police official mentioned.
This text from the Hankook Ilbo, the sister publication of The Korea Instances, is translated by generative AI and edited by The Korea Instances.
