Seven Residents Including Compensation Applicants Also Indicted Without Detention
A public official from Cheonan City Hall in Chungnam, who embezzled 1.6 billion KRW in land compensation funds using false documents, has been indicted while in custody.
The Criminal Division 3 of Daejeon District Prosecutors' Office Cheonan Branch (Chief Prosecutor Hong Jeong-yeon) announced on the 17th that a public official in his 30s, Mr. A, was arrested and indicted on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and bribery. Seven residents who participated in the crime by applying for compensation were also indicted without detention on charges including fraud.
Mr. A, who was in charge of land compensation work, is accused of embezzling about 1.6 billion KRW from Cheonan City by applying for compensation for land, fixtures, and farming loss under residents' names, including land outside the project area or using false rights holders.
It was revealed that he promised compensation to residents, received their cards to withdraw compensation funds, or laundered money using acquaintances' accounts.
He is also charged with demanding a service fee of 15 million KRW from complainants by saying, "I will help you receive a large compensation."
The seven residents are accused of providing compensation application documents and financial accounts to Mr. A and receiving service fees.
It was investigated that out of the 1.6 billion KRW, Mr. A used 1.5 billion KRW for overseas gambling and distributed 100 million KRW among accomplices according to their level of involvement.
Cheonan City detected Mr. A's embezzlement through an internal audit and reported it to the police. The police applied for seizure and preservation of assets worth about 350 million KRW, including Mr. A's apartment rental deposit and officetel, and the prosecution completed the seizure and preservation measures before indictment.
A prosecution official said, "We will ensure that the defendants receive sentences commensurate with their crimes and that the proceeds of crime are recovered," adding, "We will respond strictly to offenders who embezzle government or local government budgets."
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