Employees who reported major gapjil... sent to prosecution for embezzlement

Conspired with All Employees to Conceal Embezzlement
Received Settlement Money After Media Tip-off
Five Current and Former Employees Referred to Prosecution

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Former and current employees of a mid-sized real estate group who not only embezzled funds but also repeatedly defamed the company’s CEO have been handed over to the prosecution.

According to the police on the 5th, the Seocho Police Station in Seoul transferred Lee Mo (36), an accounting staff member of the Management Support Office at A Real Estate Group, and Kim Mo (38), an employee of the Development Strategy Office, to the Seoul Central District Prosecutors' Office on the 1st with a recommendation for indictment on charges including embezzlement and defamation. Three others, including former employee Chae Mo (37), who colluded with them to report allegations of the CEO’s abusive behavior to a broadcasting company, were also sent to the prosecution without detention on charges of defamation and others.

Starting from August 2018, Lee and others began embezzling company funds. To prevent the CEO from noticing, they conspired with former employee Chae to report allegations of the CEO’s abusive behavior. They planned to have the CEO step down from active management by making him an “Honorary Chairman” and then take over the company themselves.

Chae, who was promised material compensation by them, provided a recording of a phone call with the CEO about a past mistake he made and internal CCTV footage to a broadcasting company and also gave an interview. When media reports containing these details were released in October 2018, Lee and others gave Chae about 10 million won. Chae did not stop there; he also promised not to raise civil or criminal objections against the CEO and not to report to the media or public institutions, and reportedly received a settlement payment.

Additionally, Lee and others instructed two employees from the company’s sales team to spread false information that sales contracts had defects allowing cancellation. In the process, they made buyers pay attorney fees and encouraged them to join victim groups. As a result, the company suffered losses of about 20 billion won in unpaid sales proceeds. Taking advantage of the CEO’s distraction, Lee and others gradually began embezzling company funds, pocketing over 2 billion won. The company filed a complaint against them in January, and after about five months of investigation, the police handed the case over to the prosecution.