Construction Company CEO Deceives Investors With Promise to Build Vancouver Apartment
Files Appeals Even After Extradition Order During Years on the Run
A businessman who fled overseas after receiving more than 10 billion KRW from domestic investors under the pretense of constructing a high-rise apartment in Vancouver, Canada, has been sentenced to prison 20 years after committing the crime.
According to Yonhap News on June 11, the Seoul Central District Court Criminal Agreement Division 25 (Presiding Judge Ji Guyoun) sentenced Jung, the CEO of a construction development company, to seven years in prison on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes. In line with the prison sentence, the court revoked Jung's previously granted bail and took him into custody in the courtroom. During the trial, Jung argued that the statute of limitations had expired, but the court determined that the statute of limitations was suspended during his stay in Canada, rejected his claim, and found him guilty on all charges.
Jung was accused of embezzling approximately 10.2 billion KRW, which he received in 2005 from a Korean investor, identified as A, claiming it would be used to build a high-rise apartment in Vancouver, British Columbia, Canada. When the authorities received a complaint in July 2008 alleging fraud by Jung, he had already fled overseas. It is reported that Jung was on trial without detention for another fraud case but absconded after an additional complaint was filed.
In April 2012, the government requested Jung's extradition from the Canadian Ministry of Justice, but the process was delayed due to requests from Canadian authorities for supplementary documentation. Jung continued to evade authorities for about 15 years by engaging in lawsuits and applying for refugee status. Even after his extradition was ordered, he hired a lawyer and filed appeals, and it was not until September 2023 that the Supreme Court of Canada finalized the extradition decision. In November of that year, prosecutors brought Jung to trial in custody after his forced repatriation.
The court stated, "The arithmetic amount of damage in this case appears to exceed 10 billion KRW in nominal terms, and it would be even higher when converted to current value." The court further pointed out, "Above all, the victim has lost most of their assets and continues to suffer severe hardship as a result." Regarding the sentencing, the court explained, "The defendant stayed abroad for about 15 years to avoid criminal punishment and was forcibly extradited through criminal extradition procedures. There is little evidence of any restitution to the victim, and the defendant already has a prior conviction for fraud, having received a suspended sentence in 1998."
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