Benz Dealer Sentenced for Embezzling Customer Funds While Trying to Cover Cryptocurrency Losses

[Asia Economy Reporter Seongpil Cho] A Mercedes-Benz dealer who was indicted for embezzling customers' purchase payments to cover losses from cryptocurrency investments was sentenced to prison in the first trial.

According to the legal community on the 6th, Judge Jang Won-jeong of the Seoul Central District Court Criminal Division 25 sentenced imported car dealer Lee Mo (50), who was tried on charges of fraud and breach of trust, to two years in prison. The court pointed out, "The overall scale of the damage is considerable, and the method of exploiting others' trust reflects a very serious nature of the crime." Lee, who was on bail during the trial, was taken into custody in court following the prison sentence.

Lee, who worked as a sales manager at a Mercedes-Benz Korea dealership, was indicted for not using about 150 million won received from two customers as purchase payments to buy cars from March to September 2019. It was investigated that Lee covered losses incurred from cryptocurrency investments by using customers' purchase payments in a Ponzi-like manner.

Lee was also charged with breach of trust for embezzling funds by canceling credit card payments for cars that were properly delivered, causing losses to the company. Additionally, he was charged with fraud for receiving 20 million won from an acquaintance under the pretext of inheritance tax and failing to return it.

In court, Lee claimed, "The damage recovery was achieved as customers won compensation lawsuits against the company." He argued that since repayment was made, it should be considered a mitigating factor in sentencing. However, the court ruled, "The defendant has not restored any damage to the customers and has shifted all problematic situations onto the company," adding, "Considering the difficulty in seeing sincere remorse, a prison sentence is inevitable."