Accomplices Sentenced and Given Suspended Sentences for Embezzling Billions in Conspiracy with Former LG Uplus Employee

[Asia Economy Reporter Choi Taewon] Accomplices who conspired with a former LG Uplus employee to fabricate false sales amounting to 6.9 billion KRW have been sentenced to prison terms and suspended sentences.

According to the legal community on the 30th, Judge Andongbeom of the 12th Criminal Division of the Seoul Western District Court sentenced A and B, who were tried for fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, to 2 years and 6 months in prison with a 3-year suspended sentence on the 12th. C, who oversaw the overall operations and was tried alongside them for forgery and use of private and official documents, was sentenced to 5 years in prison, while D received 3 years in prison with a 4-year suspended sentence. The court explained the sentencing by stating, "The defendants divided their roles and committed the crimes in a planned and intelligent manner, showing very poor criminal nature. Despite the victim company suffering huge damages, the defendants have not repaid most of the losses."

They are accused of embezzling 6.9 billion KRW over approximately 26 occasions from March 2021 to August last year, in collusion with a former LG Uplus sales team leader in February 2021. They exploited the lax verification of actual line activation at headquarters when signing multi-line contracts combining internet and IPTV services. Through this, they received a commission of 300,000 KRW per line from headquarters for false contract signings.

A and B are known to have established shell corporations authorized as LG Uplus product sales agencies, which were used for the false multi-line contract signings. C and D were investigated for preparing false contracts at these shell corporations and sending them to LG Uplus headquarters to receive commissions or for conducting sales activities such as customer acquisition. Additionally, C and D forged power of attorney and seal certificates in December 2021.

A and B claimed they only lent their names and did not actively participate in the fraud, but the court did not accept this argument.

Meanwhile, the former LG Uplus sales team leader who committed the crime with them fled overseas in March last year but voluntarily returned after three months and was arrested and indicted in June last year.