Page last updated at 11:40 GMT, Monday, 1 February 2010

South Korea pyramid scheme suspect arrested


A key suspect in South Korea's largest ever fraud case has been arrested, according to police.

The man, identified only as Kim, is alleged to have been an executive manager of Lib Inc, a company accused of running a massive pyramid scheme.

The company is suspected of conning up to 50,000 people out of four trillion won ($3.4bn: £2.15bn), South Korea's Yonhap news agency reported.

Lib's owner is thought to have fled to China in 2008, said Yonhap.

The firm is alleged to have run 10 leasing companies which lured potential investors with false promises of high returns on their capital.

"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 told the AFP news agency.

Investigators said Kim had attempted to escape to China along with the company owner, Cho Hee-pal, but had failed due to bad weather.

The alleged pyramid scheme is the largest ever in South Korea, say police, beating the 2.1 trillion won JU Group case in 2006.

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