"Chinjeong Eomma Jaeryeokga"… Woman Convicted of 15.5 Billion Fraud at Parent Meeting Also Receives Heavy Sentence on Appeal

Busan High Court Sentences 15 Years Imprisonment as in Original Trial
Fraudulent Money Squandered on Department Store Luxury Shopping and More

A woman in her 50s who defrauded acquaintances she had long befriended through parent meetings, embezzling 15.5 billion KRW to enjoy a luxurious lifestyle, was sentenced to the same heavy punishment in the appellate court as in the first trial.

According to the legal community on the 2nd, the Criminal Division 2 of the Busan High Court (Chief Judge Lee Jae-wook) recently dismissed the appeal of a woman in her 50s, A, who was indicted on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud), and upheld the original sentence of 15 years in prison.

A was prosecuted on charges of defrauding a total of 15.5 billion KRW from acquaintances she met through parent meetings and other means from August 2013 to August last year by falsely fabricating the wealth of her mother and husband.

She deceived the victims by claiming that her mother was a wealthy person with close ties to the chairman of a famous domestic financial investment company, investing hundreds of billions of won in funds, and that her husband worked for a large corporation. She persuaded the victims to invest by saying there was an investment product that guaranteed high interest and principal that others did not know about, receiving 15.5 billion KRW from 12 acquaintances over 10 years until August last year under the pretext of investment.

A expanded the scale of the fraud by using the investment money to cover previous debts and paying some of the initial profits to the victims. It is reported that she gained the victims' trust by showing photos of a securities company employee together with her mother. The victims, having known A for a long time and having seen her luxurious lifestyle, had no choice but to believe her words as they were.

It is known that A squandered about 7.6 billion KRW, half of the 15.5 billion KRW obtained through fraud, on purchasing expensive clothing and luxury bags at department store luxury brand sections and buying high-end imported cars, living a lavish life.

Earlier, the first trial court sentenced A to 15 years in prison, stating, "Many victims are pleading for severe punishment due to mental and economic damages," and "Considering the period and scale of the damage, the method of the crime, and the number of victims, the guilt is not light." A appealed the verdict, but the appellate court dismissed the appeal.

The second trial court explained the reason for dismissing the appeal, saying, "Considering that she knew the structure of covering debts with embezzled money could not continue but did not stop the crime and further inflated the scale of the fraud, and that the victims are pleading for severe punishment, it is difficult to see that the original sentencing judgment exceeded the reasonable limits of discretion." A has filed an appeal to the Supreme Court despite the second trial ruling.