By Lee Hyo-sik
Police have arrested three fraudsters on charges of swindling investors out of billions of won by lying that they earned rights to build high-rise commercial and residential buildings on the site of the Indonesian Embassy.
An international crime unit at the Seoul Metropolitan Police Agency said Wednesday that a 57-year-old man surnamed Kwon and his 48-year-old nephew, both of whom hold permanent residency in Indonesia, colluded with a 38-year-old man surnamed Jung in an investment scam to steal money from financiers.
According to the police, the three told investors that the Indonesian Embassy here would soon move to another location from the current place in Yeouido and instead, four 36-story buildings would be constructed on the site.
The scammers lied that they obtained construction rights from the Indonesian government, deceiving financiers that they would reap huge gains if they invest in the construction project.
Police said the three took a total of 2 billion won ($1.9 million) from seven investors.
They were found to have forged Indonesian government documents to make it look like they actually gained development rights from the Southeast Asian country in a bid to fool investors.
Through a paper company they set up here, they also signed a consulting contract with a leading local law firm, as well as made a project agreement with the Korea Development Bank and the Korea Real Estate Investment & Trust.
In particular, the fraudsters had nine Indonesians, including Kwon’s wife, come to the country and falsely introduced them to investors as Indonesian government officials who overview the construction project.
``Kwon and his nephew have lived and operated businesses in Southeast Asian countries for many years. They masterminded the investment scam,” a police officer said. “Jung, on the other hand, was responsible for attracting investors. They executed a precisely planned false investment scheme.’’
He said Kwon and his nephew fled to Indonesia after taking money from the seven financiers. ``After they reported the scam to police, we launched an investigation in cooperation with Interpol and apprehended the two individuals. Jung was also arrested soon after.’’
Police plan to ask the Indonesian police to look into Indonesian nationals who took part in the scam and help retrieve the swindled money.