“Expected 300% profit”... Impersonation of investment expert and daily prison sentence for stock reading fraud

A group of people who lured investors into a stock reading room using famous investment experts and then defrauded them of 4 billion won in investment funds was sentenced to prison.

On the 10th of last month, the Daegu District Court sentenced Mr. A, in his 30s, to six years in prison on charges of fraud and violation of the Act on Regulation and Punishment of Concealment of Criminal Proceeds.

Four accomplices who were also brought to trial were each sentenced to 3 to 8 years in prison.

Mr. A and others are suspected of operating a fake investment site from February to April of last year and stealing about 4.8 billion won from 35 victims, including Mr. B.

They were found to have attracted an unspecified number of people by posting advertisements on the Internet and social media (SNS) saying, "High profits of up to 300% are expected after listing," and deceived victims by impersonating investment experts.

In addition, it was confirmed that they hid the proceeds of crime by depositing the stolen money into a cannon bank account managed by the organization or transferring it under the guise of buying or selling gift certificates.

The court pointed out, “The role played by the defendants was essential for the completion of the crime in this case and the realization of its profits, and the degree of their participation was not light.”

At the same time, he stated the reason for the sentencing, saying, "It is a planned and organized crime, the number of victims is large, the amount of money stolen is also large, and the fact that heavy punishment is necessary to prevent the recurrence of repeated fraudulent crimes."

Victim B's legal representative, lawyer Jeon Hyo-cheol of Daeryun Law Firm, pointed out, "The victim, who lost nearly all of her money, is complaining of extreme pain, but no recovery has been achieved at all."

He continued, "In fact, even if the organization received investment money from victims such as Mr. B, it did not have the intention or ability to pay the promised profits," and added, "The crime method was elaborate, including hiding the source of the damage, so severe punishment should have been imposed."

Go Woori (wego@ikbc.co.kr)

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"300% profit expected"...imprisonment per day for stock reading fraud impersonating an investment expert (link)