"Loan Promised for Mobile Phones"... Ringleader of Burner Phone Purchase Ring Sentenced to Prison

The ringleader of a criminal organization accused of luring people in urgent need of cash, seizing their mobile phones, and making illicit profits has been sentenced to prison in the first trial.

On June 18, Judge Kim Hoigeun of the Seoul Northern District Court Criminal Division 12 sentenced Park (29), the ringleader indicted on charges including organizing a criminal group and fraud, to five years in prison and ordered his immediate detention in court.

Judge Kim stated, "The defendant organized and operated a criminal group, deceiving credit-impaired victims in urgent need of cash by pretending to offer loans, then fraudulently obtaining their mobile phones or profiting through small-sum payments. Given the planning, organization, and methods involved, the nature of the crimes is extremely egregious."

Judge Kim further added, "Most of the victims were already in dire financial straits due to bad credit or overdue payments, and being exploited in this crime left them in even greater economic hardship. Some victims even faced criminal penalties. The defendant is subject to significant blame."

However, the court considered as a mitigating factor that Park reached settlements with 98 victims, and since the actual gains were not clearly identified, no forfeiture was ordered.

The criminal organization was brought to trial in 2021 on charges of obtaining over 900 mobile phones and 1,200 SIM cards from approximately 440 victims in urgent need of loans between November 2020 and March of the following year, distributing them as burner phones, and making 1.5 billion won through small-sum payments using the SIM cards and phones.

The group attracted victims by advertising online as "emergency loans" and "loans for the unemployed," falsely promising loans in exchange for newly activated mobile phones. They told victims they would not have to pay mobile phone bills or small-sum payment charges and that the phone lines would be canceled on their behalf, but instead, they made purchases up to the maximum limit, causing significant losses to the victims.