A group accused of laundering over 40 billion won in proceeds from phishing crimes by setting up a gift certificate business has been apprehended by the police.
The Cyber Investigation Division of the Seoul Metropolitan Police Agency announced on June 30 that they had arrested 22 individuals, including the ringleader identified as A, and referred them to the prosecution on charges including violations of the Act on Prevention of Telecommunications-based Financial Fraud and the Act on Regulation and Punishment of Criminal Proceeds Concealment.
In addition to A, who was already in custody for other charges, three others, including a manager identified as B, were also referred to the prosecution while under detention.
They are accused of receiving and laundering 41.5 billion won in criminal proceeds from a phishing organization between January and June of last year.
A set up a shell gift certificate company and received the criminal proceeds into corporate accounts to disguise them as legitimate funds.
At the same time, they attempted to evade tracking by recruiting providers of illicit bank accounts (daepo accounts) and distributing the funds through multiple transfers.
A, a former member of an organized crime group, took a 2 percent commission from the criminal proceeds and paid monthly salaries ranging from 2.5 million to 10 million won to managers, money launderers, and suppliers of illicit accounts based on their roles.
The organization members were found to be mostly unemployed individuals in their 20s and 30s who were connected as seniors and juniors from their hometown.
They created and shared a manual to ensure that if a member was caught, the identities of the remaining members would not be exposed, and they even paid fines on behalf of those arrested.
However, the organization collapsed as the members were arrested by the police one after another.
The police stated, "We plan to continue our investigation to track down the unrecovered criminal proceeds obtained by the suspects."
(Photo: Yonhap News)