Appeal Dismissed:
Defendant Sentenced to 4 Years and 6 Months in Prison in Appellate Trial
A man in his 50s who embezzled over 1.5 billion won in customer deposits by forging deposit request forms and other documents while working at a credit union for 20 years has received a prison sentence in his appeal trial as well.
According to Yonhap News on May 6, the Jeonju panel of the Gwangju High Court's 1st Criminal Division (presiding judge Yang Jinsoo) dismissed the defendant's appeal and upheld the original sentence of four years and six months in prison for Mr. A (54), who was indicted on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement), forgery of private documents, and use of forged private documents.
Mr. A was indicted for secretly withdrawing and using approximately 1.5 billion won in deposits from customers in 87 separate instances over a period of more than 20 years, from 2002 to 2023, while working in deposit operations at a credit union in the province. He was also charged with forging and using deposit request forms and electronic withdrawal slips during this process. At the time, Mr. A was responsible for handling customer deposit and withdrawal transactions at a credit union in North Jeolla Province.
He promised high interest rates to acquaintances and others to induce them to deposit money, initially paid interest, and later embezzled customer funds by closing their accounts.
Mr. A was in charge of deposit operations at this credit union for more than 20 years. To boost his performance, he lured customers with high interest rates, and victims who were acquainted with Mr. A trusted him and opened deposit accounts. Mr. A used the embezzled funds for purposes such as apartment interior renovation costs and car purchases.
This crime, which continued for as long as 22 years, came to light when Mr. A turned himself in on July 3, 2023. In addition, victims belatedly discovered their accounts had been emptied through applications and other means. During the trial, Mr. A appealed for leniency, citing the fact that he had voluntarily confessed his crimes to the police. The court did not accept this argument.
The court of first instance stated, "The defendant not only destroyed the trust and reputation of the credit union, which had entrusted him with responsibilities as a diligent employee, but also the trust of the victims who had entrusted their family assets to him. The crime has had a significant negative impact on public trust in financial institutions. Considering the lack of forgiveness from both the credit union and the victims, the duration and frequency of the crimes, and the scale of the damage, a severe punishment is unavoidable," and sentenced him to four years and six months in prison.
Mr. A also attempted to destroy evidence by visiting the credit union office and shredding some documents related to his crimes two days before and on the day he turned himself in. The court of first instance found that Mr. A went to the police with the intention of reducing his punishment after realizing his crimes were about to be discovered, and the appellate court agreed with this assessment.
The appellate court stated, "The defendant claims that he actually used only about 280 million won out of the approximately 1.5 billion won in deposits and that he has repaid most of it, but there is no clear evidence to specify the amount used. The long-term payment of high interest also appears to have been intended to prevent detection of his crimes. This is why the crimes were able to continue for over 20 years." The court further criticized, "The defendant committed these crimes in a meticulous, planned, and repetitive manner over a very long period. Given his position, his relationship with the victims, the duration, frequency, and method of the crimes, the nature of his offenses is extremely egregious."
The court also stated, "Due to the defendant's long-term, meticulous crimes, the trust and reputation of the credit union, as well as the trust of the victims who entrusted their family assets to him, have all been destroyed. Considering the significant negative impact this crime has had on public trust in the financial system, the original judgment is deemed appropriate."
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