Lee, the head of Seojeong Art Center, an art gallery at the center of alleged Ponzi fraud worth 110 billion won, has been arrested.
According to police and others on the 24th, the Criminal Task Force of the Seoul Metropolitan Police Agency's Major Crime Investigation Unit arrested Lee on the 22nd on charges including fraud under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes. The court acknowledged the need and reasonableness for Lee's detention.
Lee drew in investors by saying that if they purchased artworks and left them with Seojeong Art Center for one year, the center would generate revenue through exhibitions and advertising and sponsorships and pay out the profits. It was found that payments of profits were halted starting in May. There were also cases in which the principal investment was not returned.
Police believe there are more than 800 victims of Lee's fraud, with total losses reaching the 110 billion won range.
With Lee now in custody, police plan to investigate accomplices and additional damages.