Busan police arrest 5 foreigners over laundering of investment-scam money via car exports
In short
Busan police said on 22 October they detained six foreign nationals and arrested five of them on suspicion of laundering about 360 million won from a stock investment-advice scam by buying six foreign cars for export to Kazakhstan. Police seized four of the cars, valued at about 300 million won, before they left the country.
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Busan Metropolitan Police Agency's anti-corruption economic crime unit said on 22 October that it had detained six foreign nationals suspected of laundering proceeds from a stock investment-advice scam and arrested five of them. The suspects face allegations including violations of the Telecommunications Fraud Damage Refund Act. The sixth was booked without detention, Newsis and Kukmin Ilbo reported. [ 1 , 2 , 3 ]
According to police, the group received about 360 million won in scam proceeds and bought six foreign cars to export to Kazakhstan. Yonhap described the cars as used. The money came from a fraud gang that, in June according to Newsis, set up a fake securities company website and told seven people they could profit from stock recommendations. [ 1 , 2 , 3 ]
Reports differ on the suspects' makeup. Newsis said the five arrested were three Kazakh and two Libyan nationals. Kukmin Ilbo said the group comprised three Kazakh men, two Libyan men and one Libyan woman, all in their 20s or 30s, with the five men arrested and the woman booked without detention. It said they split roles such as management, recruitment, used-car contracts, remittance and providing business registration names. Yonhap said suspect A is a Kazakh man in his 20s. [ 1 , 2 , 3 ]
Police said they noticed, while tracing the money, that the victims' funds were flowing to an export company run by foreigners. Kukmin Ilbo added that repeated searches confirmed the money had been used to buy cars. Police asked Incheon Main Customs to halt export clearance of the six cars and to locate them. Together with customs, they seized four cars waiting for export, worth about 300 million won: one Cadillac, two BMWs and one Toyota. Kukmin Ilbo named the models as a Cadillac Escalade and a Toyota Camry and said the seizures took place last month and this month. [ 1 , 2 , 3 ]
Newsis and Kukmin Ilbo reported that the launderers planned to disguise the money as payment for car exports and then share the profit. Police are investigating accomplices and further offences, and have given Kazakh authorities information on cars already exported and on people involved in the laundering for an international investigation, the two outlets said. [ 1 , 3 ]
A police official told Yonhap that police plan to hand the seized cars to prosecutors for public auction so the proceeds can be returned to victims. Kukmin Ilbo also reported police warnings that investment-advice scams through YouTube Shorts and social media continue, urging people to be wary of investment offers from those posing as financial institutions and to report suspected damage at once. [ 2 , 3 ]
Why it matters
The case shows police tracing scam proceeds to an export company and working with customs to stop vehicles before shipment. Police are also working with Kazakh authorities on cars already exported, and they plan to return seized vehicles to victims through auction.
Key facts
- Busan Metropolitan Police Agency's anti-corruption economic crime unit detained six foreigners and arrested five, announcing it on 22 October. [ 1 , 2 , 3 ]
- The suspects are accused of receiving about 360 million won in proceeds from a stock investment-advice scam and buying six foreign cars to smuggle to Kazakhstan. [ 1 , 2 , 3 ]
- The scam gang used a fake securities company website and told victims they could profit from stock recommendations; seven people were defrauded. [ 1 , 2 , 3 ]
- Police and Incheon Main Customs seized four cars waiting for export, valued at about 300 million won: one Cadillac, two BMWs and one Toyota. [ 1 , 2 , 3 ]
- Police say they are giving Kazakh authorities information as part of an international investigation. [ 1 , 2 , 3 ]
Confirmed by several sources
- Police detained six foreigners and arrested five of them on suspicion of violating the Telecommunications Fraud Damage Refund Act and other laws. [ 1 , 2 , 3 ]
- The suspects are accused of laundering about 360 million won in stock investment-advice scam proceeds by buying six foreign cars for export to Kazakhstan. [ 1 , 2 , 3 ]
- Police asked Incheon Main Customs to halt export clearance of the six cars and seized four waiting for export, worth about 300 million won. [ 1 , 2 , 3 ]
- Police provided information to Kazakh investigators on the case. [ 1 , 2 , 3 ]
Still unclear
- The nationalities and sex of the suspects. Document 1 gives three Kazakh and two Libyan nationals among the five arrested. Document 3 says three Kazakh men and two Libyan men were arrested and one Libyan woman was booked without detention. Document 2 says only that suspect A is a Kazakh man in his 20s.
- How many of the cars were already exported, and where the two remaining cars are. Documents say six cars were bought and four were seized. Documents 1 and 3 say police gave Kazakh authorities information on cars already exported, and Document 3 says police are tracing them. None gives the number or current location.
- Whether further suspects will be charged. Documents 1 and 3 say police are investigating accomplices and additional crimes, but no further findings are reported.