Cousin brothers who committed an 8 billion KRW-level jeonse fraud using the 'no-capital gap investment' method in the Gangseo-gu and Yangcheon-gu areas of Seoul received reduced sentences in the appellate court.
On the afternoon of the 15th, the 9th Criminal Appeals Division of the Seoul Central District Court (Presiding Judge Lee Seong-bok) sentenced Kim Mo (33), a brokerage assistant indicted on fraud charges, to 4 years and 6 months in prison, and Kim’s cousin Lee Mo (27) to 2 years in prison. In the first trial, Kim was sentenced to 5 years in prison, and Lee to 3 years.
Another brokerage assistant, Jang Mo (41), who was sentenced to 5 years in prison in the first trial, was sentenced to 4 years in prison.
The court stated, “Although the victims received subrogation payments from the Korea Housing & Urban Guarantee Corporation, it takes a considerable amount of time and causes mental distress, so the crime is serious,” but also noted, “Considering that the defendants made efforts to restore the damages, acknowledged their responsibility, and have no prior criminal records.”
Previously, Kim and Lee were prosecuted on charges of embezzling 8.1 billion KRW in jeonse deposits from 32 tenants after purchasing villas using the no-capital gap investment method from March 2019 to January 2020. No-capital gap investment refers to purchasing a house using jeonse deposits received at a higher price than the actual sale price without any personal capital.
According to the prosecution, Kim, who was a real estate brokerage assistant, searched for target villas and tenants for the crime, while Lee provided his name as the buyer and lessor. The accomplice Jang taught the cousin brothers the no-capital gap investment method and then jointly purchased 23 villas intensively over about 9 months, sharing the criminal proceeds.
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