Stock Expert Impersonation and 'Doljyeomakgi' Fraud... 50s Sentenced to Prison for Embezzling 3.3 Billion Won

A man who posed as a stock market expert, borrowed money under the pretext of investment funds, paid returns in a so-called 'Ponzi scheme' manner, and embezzled billions of won was sentenced to prison.

[Image source=Yonhap News]

According to the legal community on the 4th, the Criminal Division 11 of the Seoul Northern District Court (Chief Judge Lee Dong-sik) sentenced Mr. A, in his 50s, who was indicted on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud), to six years in prison.

Mr. A was charged with embezzling approximately 3.3 billion won in total from multiple victims over 95 occasions from 2018 to 2022 by introducing himself as a stock investment expert and soliciting investments in stocks and futures options.

He deceived victims by promising guaranteed high returns, received money, and used that money to pay promised returns to other victims or to cover his living expenses and debt repayments, according to investigations.

Although he had no intention of paying the principal and returns promised to the victims, Mr. A promised a monthly interest rate of 10% and repeatedly collected investment funds by falsely claiming profits in the victims' accounts.

The court stated, "Considering the method of the crime, the number of occurrences, and the scale of the damage, the guilt is serious. Although more than 1 billion won was paid to victims during the crime, it was only paid in a so-called 'Ponzi scheme' manner to continue the crime, and the remaining damages have not been recovered at all."

It added, "However, Mr. A's sincere remorse and the fact that the victims, who sought high returns in a short period, also bear considerable responsibility are mitigating factors," explaining the reasons for sentencing.