Not Pharmacists... Couple Operating Pharmacy for 13 Years Using Borrowed License, Collected 5.4 Billion KRW in Nursing Care Benefits and More

Embezzlement of 5.4 Billion Won in Nursing Care Benefits
1st Trial: 1 Year 6 Months Imprisonment → 2nd Trial: 2 Years · 3 Years

A couple who operated a pharmacy for a long time by borrowing a license despite not being pharmacists and embezzled approximately 5.4 billion KRW in nursing care benefit costs were sentenced to prison in the appellate court as well.

On the 14th, the Criminal Division 2-2 of Suwon High Court (Presiding Judges Kim Gwanyong, Lee Sangho, Wang Jeongok) announced that in the appeal trial of Ms. A (female, in her 50s) and her husband Mr. B (male, in his 60s), who were indicted for violating the Pharmacists Act and the Act on the Aggravated Punishment of Specific Economic Crimes (fraud), the original verdict was overturned and they were sentenced to 2 years and 3 years in prison respectively. Previously, the lower court had sentenced them to 1 year and 6 months each. Additionally, pharmacist Mr. C (in his 80s), who lent his name to them, was sentenced to 1 year and 6 months in prison with a 3-year probation.

Ms. A and Mr. B are accused of operating a pharmacy in Gyeonggi Province from January 2006 to June 2019 by borrowing the name of pharmacist Mr. C and embezzling about 5.4 billion KRW from the National Health Insurance Service under the pretext of nursing care benefit costs. It was revealed that they paid a portion of the profits to Mr. C in exchange for operating the pharmacy under his name. However, Ms. A and others claimed innocence, stating that they were merely pharmacy employees.

Suwon District Court, Suwon High Court exterior view
[Photo by Yonhap News]

In the first trial, the court found it difficult to conclude that the defendants opened and operated the pharmacy from 2006 based solely on the evidence submitted by the prosecution, and recognized the crime period only from March 2015 to June 2019, a period of 4 years and 3 months. Accordingly, the court sentenced the couple to 6 months in prison and acquitted Mr. C.

However, the appellate court considered legally adopted and investigated evidence such as the timing of the partnership agreement written by the defendants and pharmacist Mr. C and transaction records, and judged that it was proven that the couple opened and operated the pharmacy from as early as 2006.

The appellate court stated, "Considering the circumstances, means, and methods of the defendants' crimes, the nature of the crime is very serious," and pointed out, "The crime period lasted a staggering 13 years and 5 months, and the embezzled amount reached about 5.4 billion KRW." Regarding the sentencing reasons, the court explained, "We took into account that Mr. B appeared to have led the crime."