10-Year Prison Sentence for 17 Billion Won Gift Card Fraud...Prosecution Appeals, Saying "No Remorse and Sentence Too Low"

An internet cafe operator who was sentenced to prison for a 17 billion won gift certificate investment fraud appealed the first trial verdict, and the prosecution also filed a cross-appeal.

On the 16th, the Incheon District Prosecutors' Office announced that A (51, female) and her son B (30), who were recently sentenced to 10 years and 4 years in prison respectively on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, filed an appeal with the court dissatisfied with the first trial verdict. The prosecution also appealed the acquittal of A’s husband C (39), who was jointly indicted on charges of aiding and abetting the crime (aiding fraud).

The prosecution explained, "The defendants prolonged their crimes using a 'Ponzi scheme' method, expanding the damage over a long period, and many victims have not reached settlements and are petitioning for severe punishment of the defendants. The defendants showed no remorse after the crime and rather pressured the victims to withdraw their complaints."

They added, "We judged that the sentences were excessively light compared to the degree of the defendants’ crimes. Regarding the co-defendant C, who was acquitted, we considered that he actively participated in the crime by providing business registration and accounts under his name to A," explaining the reasons for the appeal.

Internet cafe operator accused of a 17 billion won gift certificate investment fraud
[Photo by Yonhap News]

At the sentencing hearing held on the 5th of last month, the prosecution requested 15 years imprisonment for A, and 7 years and 3 years imprisonment for B and C respectively. The prosecution stated, "We will respond strictly to fraud cases that produce many innocent victims by luring with high returns, and ensure that punishments commensurate with the defendants’ crimes are imposed in the appellate trial as well."

Earlier, A and B also filed appeals with the court, arguing that the sentences were excessively harsh.

A was arrested and indicted on charges of embezzling 17.1 billion won from 69 members while operating an internet cafe from November 2019 to November 2022. She is also accused of illegal quasi-deposit activities by collecting 48.6 billion won from 290 people through the internet cafe, which has 15,000 members.

It was investigated that A proposed so-called "Sangtech" (gift certificate + asset management) to members, promising to return the principal with a 30% profit if they invested in department store gift certificates. Broadcaster Hyun Young (47, real name Yoo Hyun Young) is also known to have transferred 500 million won to A, who promised a 7% monthly interest, but did not receive part of the principal back.