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Suspect held in S. Korea's biggest fraud case

He was involved in a pyramid scheme involving around US$3.4 billion. -AFP

Mon, Feb 01, 2010

SEOUL, Feb 1, 2010 (AFP) - Police said Monday they have arrested a suspect in South Korea's biggest fraud case, a pyramid scheme involving around four trillion won (US$3.4 billion).

Police said the man identified only as Kim was executive manager of a company called Lib Inc, which is thought to have embezzled the sum from 40,000-50,000 investors.

"Kim has been on the wanted list for one year and three months for two counts, both related to fraud," Police Sergeant Hwang Yun-Sub in Seosan county 100 km (60 miles) southwest of Seoul told AFP.

Police said Kim, 43, is believed to have worked closely with Cho Hee-Pal, the owner of Lib Inc who fled to China in 2008.

The company ran some 10 leasing companies that fraudulently promised investors high returns.

Police said it was the country's biggest ever fraud case, topping a 2.1 trillion won pyramid fraud by JU Group in 2006.

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