A South Korean director defrauded 123 Vietnamese people, stealing tens of billions of dong.
Using a multi-level marketing scheme for financial mobilization, a South Korean national established numerous companies and defrauded 123 Vietnamese individuals of over 65 billion VND.
The Ho Chi Minh City Police Investigation Agency has just completed its investigation report and transferred the file to the People's Procuracy of the same level, recommending the prosecution of the defendant Kim Bumjae (born in 1968, South Korean nationality) for the crime of..."Fraudulent appropriation of property."
Kim Bumjae is the director and legal representative of Raon Vietnam Co., Ltd. and Khanh Asset Co., Ltd.
Also indicted on the same charge are Nguyen Thi Huong (born in 1993, an assistant to Kim Bumjae) and five others.
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| The suspect is Kim Bumjae. |
According to the investigation's conclusions, Kim Bumjae had previously met and done business with Kim Sung Hun, the CEO of IDS Holdings Korea.
Kim Sung Hun introduced his company, which has branches all over the world, and asked Kim Bumjae to be its representative in Vietnam. Kim Bumjae's task was to attract financial investment.
The money raised by Kim Bumjaae was transferred back to South Korea for foreign exchange (Forex) trading. Kim Sung Hun allowed Kim Bumjae to retain 4% of the total amount raised to cover branch operating expenses, interest payments, and commissions.
Accordingly, from April 2015 to October 2018, Kim Bumjae established a series of companies, acting as director and legal representative to illegally raise capital through a multi-level marketing scheme. Kim Bumjae also organized classes on Forex financial investment, poker clubs, karaoke, cafes, and office/real estate rentals… to build trust and lure victims into participating.
The reality is that Kim Bumjae took money from later participants to pay interest to earlier participants.
Between March 2019 and June 2020, 126 people filed complaints accusing Kim Bumjae of fraud with the Ho Chi Minh City Police Investigation Department.
To date, the police have determined that 123 people were defrauded of a total of 65 billion VND. Among them, many have already received interest payments from Kim Bumjae.
In this case, there are six other accomplices, including Nguyen Thi Huong, who is also recommended for prosecution for fraud. They were mostly employees, paid by Kim Bumjae.
Huong, in particular, was Kim Bumjae's assistant. Huong was well aware of the illegal multi-level marketing schemes that Kim Bumjae established, but she participated in managing and operating these companies, assisting in the embezzlement of money from many people.
