30s Gang Member Sentenced for Making 'Fake SIM Cards and Accounts' to Steal Money at Mobile Phone Store

[Asia Economy Reporter Kim Daehyun] A member of a group who set up mobile phone stores to open so-called 'Daepo USIMs' and attempted to create and sell hundreds of securities accounts using the personal information obtained in the process was sentenced to prison in the first trial.

On the 6th, according to the court, Judge Shin Hyukjae of the Criminal Division 4 at the Seoul Central District Court sentenced A (34, male), who was indicted for violating the Telecommunications Business Act and the Electronic Financial Transactions Act, to 4 years and 6 months in prison and ordered a fine of 193 million won.

Previously, the organization, consisting of about 10 people including A, operated six mobile phone stores in Busan, Pohang City in Gyeongbuk, and Jecheon City in Chungbuk for over three years from 2019, creating Daepo USIMs and recruiting 1,306 people by promising to pay 20,000 won per line if they opened a mobile phone under their own name.

A and others are accused of opening 1,708 Daepo phone lines by activating USIMs through sending personal information such as ID cards and pledge forms received from the recruits to telecom companies, and selling them to illegal distributors.

Moreover, they were also indicted for creating about 500 'Daepo securities accounts' by deceiving securities company employees into thinking they were opening accounts themselves. The personal information and ID cards obtained when opening mobile phones were investigated to have been used in this process.

A had previously been sentenced to 1 year and 6 months in prison in July last year for violating the Act on Punishment of Violent Crimes (organization formation and activities).

Judge Shin stated, "Under organized and planned conspiracy, they played a leading role in opening and distributing numerous prepaid USIMs and creating and transferring multiple securities accounts using others' personal information obtained during the USIM activation process. Since these crimes pose a high risk of being exploited for socially harmful crimes such as telephone financial fraud (voice phishing), illegal gambling, and money laundering, strict punishment is necessary, making a prison sentence unavoidable."

He added, "However, the defendant admitted most of the crimes in this case and cooperated during the investigation to help uncover the facts, and considering various other sentencing factors, the sentence was determined."

Meanwhile, A has appealed the first trial verdict.