Court: "Multiple victims and large amount defrauded"
A man in his 40s, who was prosecuted for committing a lease fraud involving about 2.2 billion won from 20 people including young workers, was sentenced to five years in prison in the first trial.
On the 19th, Judge Kwak Yongheon of the Suwon District Court Criminal Division 9 sentenced Mr. A, who was prosecuted on charges including fraud, to five years in prison.
The court stated, "Lease fraud crimes like this case cause significant social harm by making economically vulnerable tenants even more financially distressed. Considering the large number of victims, the substantial amount defrauded, and the unforgivable nature of the crime, it is necessary to severely punish the defendant."
Mr. A was indicted on charges of defrauding about 2.29 billion won in deposits from 20 victims after purchasing three multi-family residential buildings located in Osan and Hwaseong, Gyeonggi Province, from August 2020 to November 2022 using a no-capital gap investment method.
The prosecution judged that Mr. A had no intention or ability to return the lease deposits later, considering that he planned to use all the lease deposits to cover the building purchase price or invest in high-risk derivatives, and that the monthly interest on the mortgage debt of the purchased buildings was about 10 million won while the expected monthly rental income was only about 7 million won.
The prosecution, which sought an eight-year prison sentence for Mr. A, appealed the first trial verdict. A prosecution official explained the reason for the appeal, saying, "Considering that the defendant denies some of the crimes and shows no remorse, and that most of the victims are young workers who suffered significant financial and psychological damage, it is necessary to severely punish lease fraud crimes that have recently caused enormous damage to promote a preventive effect."
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