Supreme Court Confirms 30 and 25-Year Prison Sentences for Couple in Pocheon Real Estate 300 Billion Won Investment Fraud Case

A couple who operated a quasi-deposit business and committed an investment fraud worth over 300 billion won against more than 3,000 victims has been sentenced to heavy prison terms.

According to the legal community on the 19th, the Supreme Court's 3rd Division (Presiding Justice Lee Heung-gu) upheld the original sentences of 25 years imprisonment for Jeong and 20 years imprisonment for his wife Kim, who were indicted for violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud) and other charges. Kim, a former brigade commander of a military unit who was indicted for receiving bribes from them (bribery and violation of the Act on the Prevention of Corruption and the Establishment and Management of the Anti-Corruption and Civil Rights Commission), was also sentenced to 1 year in prison with a 2-year probation.

Supreme Court, Seocho-dong, Seoul.

The Jeong couple, who operated a lending business and acquired a botanical garden in Pocheon, Gyeonggi Province, were prosecuted for deceiving over 3,000 victims by promising "an annual return of about 30% through real estate auctions and disposal of non-performing loans," receiving over 300 billion won in investment funds and failing to return them.

They began actively recruiting investors from 2019, when the real estate investment boom started, and gathered money using real estate in Pocheon as a pretext until 2021. They used a Ponzi scheme, repaying principal and profits to investors whose contract periods had ended by using new investment funds.

In particular, even after the investigation had progressed significantly, starting with a search and seizure, the couple boldly continued to attract large amounts of new investment funds, according to the investigation.

The two were also accused of bribing or promising to bribe Kim, the then brigade commander who had influence over the construction permit for a suspension bridge project near a military base in Pocheon.

During the trial, the couple claimed they had no intent to commit fraud.

However, the first-instance court acquitted them only of the charges related to the promise to give bribes and some bribery charges, but found most of their other charges guilty, sentencing Jeong to 25 years in prison and Kim to 20 years in prison.

The court found that the couple deceived investors despite knowing that it would be difficult to guarantee the principal and profits solely through real estate and non-performing loan businesses.

Kim, the brigade commander who received bribes from them, was sentenced to 1 year in prison with a 2-year probation.

All three appealed, but the appellate court dismissed their appeals.

The court stated, "Even after the investigation by the authorities had progressed to a considerable extent, making it foreseeable that normal business operations would be difficult, they attracted large amounts of new investment funds, which is highly blameworthy," and upheld the first-instance sentences of 25 years and 20 years imprisonment, and 1 year imprisonment with 2 years probation, respectively.

The three filed a final appeal, but the Supreme Court found no issues with the appellate court's judgment.

Regarding the Jeong couple's grounds for appeal, the court noted, "The two only claimed that the sentencing was excessive in their appeal against the first-instance judgment. In such cases, claims that the appellate court's judgment contains legal errors do not constitute valid grounds for appeal."

It added, "Claims that the appellate court's sentencing violated the principles of proportionality and responsibility, omitted consideration of sentencing factors, or lacked sufficient examination ultimately amount to claims of excessive sentencing. Considering various sentencing conditions shown in the records, such as the defendants' age, character, environment, relationship with victims, motives, methods and results of each crime, and circumstances after the crimes, even if the circumstances claimed in the appeal are taken into account, it cannot be said that the appellate court's decision to uphold the first-instance sentences of 25 years for Jeong and 20 years for Kim was grossly unfair," explaining the reason for dismissing the appeal.

Regarding Kim, the brigade commander, the court stated, "There is no error in the appellate court's judgment that violates the rules of logic and experience, exceeds the limits of free evaluation of evidence, or misinterprets the legal principles related to the official duties and quid pro quo of bribery, which would affect the judgment."

The botanical garden in Pocheon, Pyeonggang Land, acquired by the Jeong couple, became famous as a pink muhly grass attraction, but due to the aftermath of the fraud, it is currently undergoing sale procedures.