Seoul jeweler accused of swindling customers out of 10 billion won 

A jewelry store owner accused of defrauding customers out of more than 10 billion won ($6.6 million) worth of gold and informal savings contributions was arrested, the Seoul Metropolitan Police Agency said Monday.

The suspect, a man running a business in Jongno District, central Seoul, was taken into custody by law enforcement on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.

A detention warrant against him was sought on Sunday.

“Entrust your gold to me, and I'll pay you investment returns,” the suspect allegedly told acquaintances and customers to persuade them to hand over their gold.

He then failed to pay the promised dividends. He is also accused of embezzling money collected through informal rotating savings groups.

Police have so far identified alleged losses exceeding 10 billion won, with about 140 criminal complaints filed in connection with the case.

The Seoul Central District Court is scheduled to hold a warrant hearing for the suspect at 3:30 p.m. Monday. A decision on whether to formally detain him is expected later in the day.

The Seoul Hyehwa Police Precinct transferred the case to the Seoul Metropolitan Police Agency's provincial special detective corps' financial crime investigation unit last month after determining that the alleged losses warranted a broader investigation.

BY HAN YOUNG-HYE [[email protected]]