Court Sentences Former Chairman Joo Soo-do to 10 Years in Prison in 110 Billion Won Prison Fraud Appeal Trial

On March 22 last year, Joo Soo-do, former chairman of JY Group, attended the first trial at the Seoul Central District Court in Seocho-gu, Seoul, stepping down from the escort vehicle and heading to the courtroom.
[Image source=Yonhap News]

[Asia Economy Reporter Choi Seok-jin] Joo Soo-do, former chairman of JY Group (64), who was sentenced to 12 years in prison for a 2 trillion won illegal pyramid sales fraud and was prosecuted again for a 110 billion won fraud while serving his sentence, received a heavy sentence in the appellate trial.

The Criminal Division 8 of the Seoul High Court (Presiding Judge Jeong Jong-gwan, Lee Seung-cheol, Lee Byung-hee) on the 13th sentenced Joo to 10 years in prison and ordered a confiscation of about 44.4 billion won in the appeal trial on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud). This is 4 years longer than the 6-year sentence in the first trial. The court also dismissed Joo's bail request.

The court stated, "For the defendant who has already been sentenced to a heavy sentence and committed multi-level marketing fraud again while in prison, causing more victims, there seems to be no way to prevent recidivism other than long-term detention."

Joo is accused of operating the multi-level marketing company 'Human Living' for one year from 2013 by controlling his close associates and receiving 113.7 billion won from 1,329 victims under the pretext of investment funds, despite lacking the ability to pay commissions.

He is also charged with embezzling 1.1 billion won of company money from Human Living, transferring 3.1 billion won for fictitious goods to a nominee company, and using 130 million won of company funds for his own legal fees.

Joo, who founded JY Group in 1999 and started multi-level marketing sales, was found to have embezzled 2.1 trillion won from about 93,000 people through JY Group. He was sentenced to 12 years in prison by the Supreme Court in October 2007 and has been serving his sentence since then.