Former Goodrich Executive Sentenced to Prison for Embezzling 1 Billion Won Through Fraudulent Investment Scheme

has been sentenced to two years in prison

A former executive of Goodrich (previously Rich & Co.) has been sentenced to two years in prison for embezzling 1 billion won by enticing investors with promises of high returns on insurance products. This post delves into the details of the case.

Recently, the court sentenced former Goodrich executive Mr. Seo to two years in prison for embezzling a substantial amount of money under the pretense of investment in insurance products. Judge Choi Kyung-seo of the Seoul Central District Court's Criminal Agreement Division 24 delivered the verdict, finding Mr. Seo guilty of violating the Act on the Aggravated Punishment of Specific Economic Crimes (Fraud).

Mr. Seo entered into a contract with Goodrich in September 2018 and worked as a Rich Consultant for a year. In March 2019, he met a potential investor interested in financial investments and introduced himself as the branch manager of Goodrich. During a visit to the victim's office, he presented false planning documents claiming that an investment of 480 million won in an insurance product over two years would yield a return of 876.08 million won.

From April 5, 2019, Mr. Seo began receiving funds under the guise of investment money, starting with a transfer of 50 million won to his personal account. By September 3, 2019, he had received a total of 1 billion won in 12 separate transactions. At that time, Mr. Seo was in dire financial straits, having borrowed money from other lenders to repay 300 million won in principal and 30 million won in monthly interest on existing loans. Despite receiving the investment funds, he had no intention of paying any returns to the investor.

The court stated, "The defendant committed a serious crime by embezzling a large amount of money over a period of approximately five months," adding, "A significant portion of the embezzled funds has not been repaid." However, considering that Mr. Seo reached an agreement with the victim based on the condition that he would continue his economic activities to repay the remaining amount and had partially repaid the funds, the court decided not to take him into immediate custody.

Mr. Seo has appealed the first-instance judgment. Goodrich stated, "Mr. Seo was dismissed in 2019 and is no longer affiliated with Goodrich," emphasizing, "This was an individual's misconduct, not an action led by the company."

This case starkly illustrates the dangers of fraudulent schemes that promise high returns to investors through false information. When making investment decisions, it is crucial to rely on trustworthy information and seek expert advice if any suspicion arises. This incident serves as a reminder for investors to act more cautiously in the future.