A Woman in Her 40s Deceived with High Interest Rates to Embezzle 11.4 Billion Won... Sentenced to 9 Years in Prison

A woman in her 40s was sentenced to 9 years in prison for fraudulently swindling 11.4 billion won by enticing acquaintances with promises of high interest rates. Photo by Yonhap News

[Asia Economy Reporter Hana Na] A woman in her 40s was sentenced to 9 years in prison for fraudulently swindling 11.4 billion won from acquaintances by luring them with promises of high interest rates.

On the 25th, the Gwangju District Court announced that it sentenced A (42), a housewife charged with fraud (fraud under the Act on the Aggravated Punishment of Specific Economic Crimes) for defrauding 11.4 billion won from acquaintances.

A, a former office manager at an accounting firm, was arrested and indicted on charges of deceiving 22 acquaintances over two years starting from April 2017 by claiming, "We need capital to establish a construction company, and if you invest, we will pay high interest," and embezzling 11.4 billion won.

The court judged that out of the 11.4 billion won defrauded by A, about 6.5 billion won was used in a so-called "Ponzi scheme" manner. The Ponzi scheme involves borrowing money from other victims to repay debts when victims demand repayment.

It also pointed out that the remaining 4.9 billion won was spent on luxury lifestyles such as purchasing luxury cars, designer clothes and bags, and covering credit card expenses for her husband and younger brother.

The court stated, "A committed a fraudulent act by collecting money under the pretense of investment funds for a non-existent business without being involved in the establishment of the construction company," and added, "Considering that the acquaintances are living difficult lives without recovering their losses, a severe punishment is warranted."