A group of customers of TMON and WeMakePrice has filed a complaint with the police against Ku Young-bae, the CEO of the two companies’ parent company Qoo10. 

In a news conference in front of the Seoul Gangnam Police Station on Monday, Shim Jun-seop, a lawyer at a local law firm representing the victims said, the group was filing the complaint against Ku and four others, including the heads of TMON and WeMakePrice, for fraud, embezzlement and breach of trust.  

Shim, who claimed to also be a victim of the latest settlement failures, said the accused engaged in a Ponzi scheme by operating shopping malls even though they were not capable of settling payments.  

He claimed that the accused’s illegal act of misappropriating funds to expand another Qoo10 subsidiary, Qxpress, and the lax management of business could be equivalent to embezzlement or breach of trust.  

The lawyer, however, stopped short of elaborating on how many had taken part in filing the latest complaint and the amount of financial losses suffered, citing client confidentiality. 

Shortly after the complaint was submitted, an official of the police station said the case was assigned and hence related figures will be consecutively investigated in line with procedures.