Consulting CEO and Securities Employee Sentenced for Deceiving Real Estate Developer Chairman

[Asia Economy Reporter Kim Daehyun] The CEO of a real estate consulting firm was sentenced to prison in the first trial for defrauding the chairman of a specialized real estate development company of billions of won by fabricating documents claiming to transfer rights to a newly constructed mixed-use complex.

On the 25th, according to the court, the Criminal Division 31 of the Seoul Central District Court (Presiding Judge Lee Jungmin) sentenced Park (65, male), CEO of real estate consulting firm D, who was indicted on charges of fraud under the Specific Economic Crimes Act and forgery and use of private documents, to six years in prison. Park's younger brother, a company director (59, male), was sentenced to four years and six months, and Kwon (53, male), an employee of a securities company, was sentenced to three years in prison.

The Park brothers were tried on charges of deceiving the chairman of the specialized real estate development company H Group in 2021 by pretending to have the rights to construct a mixed-use complex building in the Hyoseong-dong area of Gyeyang-gu, Incheon, and defrauding 2 billion won under the pretext of transferring business rights.

During the crime, Kwon was investigated for forging private documents related to factual certification using the name and seal of the representative of the securities company he belonged to, at the request of Park's younger brother, an acquaintance. The forged document titled "Hyoseong-dong Complex Facility Financial Institution Participation Letter of Intent" contained contents such as "Procurement amount BL 100 billion won and PF approximately 300 billion won."

The Park brothers presented this document to the chairman of H Group and demanded a contract deposit, saying, "We will transfer all business rights, including the right to construct a mixed-use complex building on the land, permits and approvals, and buyer status."

During the trial, Park denied some charges, stating, "I did not directly conspire in the forgery of private documents committed by my younger brother and Kwon." Kwon argued, "I did not conspire in the use of forged documents and fraud. I am only an accomplice to the Park brothers."

The court rejected Park's claims, stating, "Conspiracy to forge documents and functional control of the act can be recognized." It also revealed, "The younger brother testified in court that 'after the validity period indicated on some documents expired, my brother asked me to have Kwon prepare new documents.'" The court also reflected the fact that the Park brothers had been punished several times for similar crimes in sentencing.

Regarding Kwon, the court pointed out, "It is recognized that he conspired with the brothers in each crime. As he was about to retire from the securities company, he actively helped the business to get a job at the company operated by Park's younger brother, fully aware that the Park side had no rights to the land."

The court stated, "Kwon, an employee of a financial company where credit is extremely important, forgot his position and forged documents related to factual certification in the name of the representative. He received 300 million won of the victim's money and used more than 180 million won personally," but added, "considering that his involvement in the fraud was relatively minor."

Both the Park brothers and Kwon appealed the first trial verdict.