Victims of the Jongno jewelry shop fraud rally in front of the Seoul Metropolitan Police Agency Metropolitan Investigation Unit on July 2, demanding a swift investigation. [Kim Seo-hyeon/The Herald Business]
Victims of the Jongno jewelry shop fraud rally in front of the Seoul Metropolitan Police Agency Metropolitan Investigation Unit on July 2, demanding a swift investigation. [Kim Seo-hyeon/The Herald Business]

The owner of a jewelry shop in Jongno-gu, Seoul, suspected of running a gold investment fraud scheme worth more than 10 billion won ($6.64 million), now faces a detention decision.

The Seoul Central District Court held an arrest warrant hearing Monday at 3:30 p.m. for the suspect, identified only as A, a man in his 50s facing charges under the Act on the Aggravated Punishment of Specific Economic Crimes.

A was arrested in Seoul on Friday. The Seoul Metropolitan Police Agency Metropolitan Investigation Unit's financial crimes team applied for an arrest warrant Sunday, and prosecutors submitted the warrant request to the court that day.

A is accused of collecting gold and cash from customers and acquaintances by promising to pay dividends in return for depositing gold with him, then failing to return the assets.

Police have received about 140 complaints, with losses estimated at more than 10 billion won. Investigators are continuing to assess the full scale of the damage as additional victims may come forward.

The case began after complaints were filed with Hyehwa Police Station in early June. As the alleged losses grew, the investigation was transferred from Hyehwa Police Station to the Seoul Metropolitan Police Agency Metropolitan Investigation Unit's financial crimes team for dedicated handling.

Police plan to question A about the alleged methods of the crime, how the funds were used and whether any accomplices were involved, then proceed with the investigation depending on whether the court orders his detention.


jookapooka@heraldcorp.com