An illegal multi-level organization that raised 46 billion won by deceiving the elderly and middle-aged with sweet words such as "You can receive up to 5.2 million won a week like a lifetime pension" has been discovered.

On the 31st, the Seoul Metropolitan Government's Civil Affairs and Judicial Police Department announced that it had caught three people and arrested one of the main criminals on charges of collecting 46 billion won from about 5,000 people through an illegal multi-level marketing scheme.

They operate 134 centers across the country and held business information sessions for people in their 60s or older, housewives, retirees, etc. At the briefing session, it was deceived by saying, "If you purchase points called cash, you will accumulate 2.6 times the amount, pay various allowances including weekly cash withdrawal, and guarantee principal and high profits." In addition, victims were attracted through a multi-level method, such as paying additional allowances when recruiting lower-ranking members.

To avoid legal liability, they transferred the investment to 24 companies and personal accounts in the name of loans or investments, had members purchase cash, and then made them buy items at a shopping mall, pretending that it was not a similar receiving activity. However, in reality, they deceived the victims by not paying the promised allowances and refunds to members and shutting down the marketing computer system.

The victims invested not only their life savings, but also severance pay, loans, and lease funds, but were not able to get it back and suffered great damage. It was found that there were about 1,300 victims who invested more than 10 million won.

The Seoul Metropolitan Government urged caution, saying, “Multi-level marketing is an illegal practice that attracts other people to make a profit, rather than a return on investment.” In particular, he emphasized, “In most cases, enticing investments by guaranteeing high returns and requiring low initial capital are highly likely to be illegal pyramid schemes.”

An official from the Financial Supervisory Service said, "As the number of investors seeking high profits has increased in the recent era of high interest rates and high inflation, such cases of illegal multi-level damage are increasing. Before investing, be sure to search for the company in question on the Financial Supervisory Service's illegal financial information portal and consult with people around you." “You have to make a careful decision,” he advised.

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