"Try Investing in Redevelopment Villas" 43.5 Billion Fraud by Incheon Real Estate Agent

"Promising 10% Returns on Investment" Scam
Embezzled 43.5 Billion KRW from 52 People

"A very cheap villa listing came out in the redevelopment area. I'll give you 10% if you make a profit later. Invest quickly."

A licensed real estate agent was arrested by the police for swindling 43.5 billion won by deceiving people with promises of sharing profits from investing in villas in redevelopment areas.

According to Yonhap News on the 31st, the Anti-Corruption and Economic Crime Investigation Division 1 of the Incheon Metropolitan Police Agency arrested a woman in her 50s, A, a licensed real estate agent, on charges of fraud under the Act on the Aggravated Punishment of Specific Crimes and violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission, and booked her accomplice, a man in his 50s, B, without detention.

Seoul's Multi-family and Row House (Villa) Dense Areas
[Image Source=Yonhap News]

A, who operated a real estate office in Incheon, is accused of deceiving 52 acquaintances and others into investing in redevelopment areas in Incheon from November 2017 to November last year, embezzling 43.5 billion won over five years.

Acquaintance B introduced investors to A and received 500,000 to 1,000,000 won per person as a commission, according to the investigation.

The investigation revealed that A did not own a single villa in the Incheon redevelopment area.

A prevented victims from reporting to the police by saying, "If I get arrested, you won't get your investment back."

The police received a complaint from one victim in January and analyzed the deposit and transfer details of about 10 of A's bank accounts to identify all other victims. Some victims invested a total of 19 billion won in divided amounts.

A police official said, "A used the investment money to pay profits to other victims in a so-called 'Ponzi scheme' and also spent some on living expenses."

Meanwhile, an investigation into licensed real estate agents in the metropolitan area who brokered houses owned by so-called 'villa kings' and other malicious landlords more than twice revealed that 41% of them violated the Licensed Real Estate Agent Act.

The Ministry of Land, Infrastructure and Transport announced on the 30th that a special inspection of 242 licensed real estate agents from February 27 to March 19 uncovered 108 violations by 99 agents (41%).

The Ministry conducted on-site investigations targeting licensed real estate agents who brokered houses owned by malicious landlords more than twice by cross-checking the list of malicious landlords managed by the Housing and Urban Guarantee Corporation (HUG) and lease contracts. Among the 108 violations detected during this process, 53 cases were referred to the police for investigation.