Owner of Jongno jewelry shop sent to prosecutors in W15b fraud case as police track hidden assets

The suspect behind a jewelry shop fraud case involving 15 billion won ($10.1 million) has been sent to prosecutors while in detention, as police continue to track hidden assets to compensate victims.

The Seoul Metropolitan Police Agency Metropolitan Investigation Unit's financial crimes unit said Monday it had forwarded a 50-something jewelry shop owner in Jongno-gu, identified only as A, to prosecutors on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.

A is accused of deceiving customers and acquaintances by promising dividend payments in exchange for gold deposits, then keeping the gold without returning it. He also allegedly collected down payments by offering to sell gold at below-market prices, then failed to deliver.

Investigators also found that A defrauded victims by promising storage fees for gold or silver deposits and interest payments for cash deposits, then pocketing the money.

Police have so far identified 146 victims, with total damages reaching 15 billion won. Some victims had even entrusted their babies' first-birthday gold rings to A. A was apprehended July 10, and a court issued an arrest warrant on Monday, July 13, citing a flight risk. Police forwarded A to prosecutors Monday and are continuing to trace hidden assets to recover criminal proceeds.

Meanwhile, some victims have begun preparing civil suits seeking damages and provisional seizures to preserve their claims following A's detention. They plan to pursue recovery of their losses based on the outcome of the criminal trial.