Pretending to Be Paralyzed in a Wheelchair... 1.8 Billion Won Insurance Fraud by Man in His 70s Over 25 Years

Sentence Reduced on Appeal... Taken Into Custody Due to Flight Risk
Received 1.2 Billion Won More Than Entitled to in Benefits

A man in his 70s who became paralyzed from the waist down after a fall and continued to receive insurance payments for 25 years, even after recovering but concealing his recovery, has received a reduced sentence on appeal. However, unlike the first trial, he was taken into custody in court this time.

On September 12, the Criminal Division 1 of the Daejeon High Court (Presiding Judge Park Jihwan) overturned the original sentence of three years and six months in prison and sentenced Mr. A (age 71), who was charged with fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violating the Industrial Accident Compensation Insurance Act, to three years in prison in the second trial. In addition, Ms. B (age 74), who assisted Mr. A by borrowing a friend’s caregiver certificate, was sentenced to one year in prison. Ms. B’s sentence was also reduced compared to the first trial.

Daejeon High Court. Yonhap News

The court determined that both individuals posed a significant flight risk and ordered them to be taken into custody. The court stated, "The crimes were committed over a long period, and the amount of damage to the insurance company reached 1.8 billion won, which is extremely large. The difference between the actual disability benefits Mr. A should have received and the amount he fraudulently obtained is about 1.2 billion won. Furthermore, they deceived the authorities by pretending that a caregiver had provided care to Mr. A when this was not the case, making the nature of the crime particularly egregious."

The court continued, "Due to the defendants’ actions, public pension funds that should have been provided to those rightfully entitled to insurance benefits were wrongfully paid. Since this has affected the pension fund’s finances, strict punishment is necessary. However, considering that Mr. A did suffer significant disabilities, such as actual paralysis of all four limbs, which greatly restricted his daily life, and that he has repaid part of the damages to the Korea Workers’ Compensation and Welfare Service, the original sentence appears somewhat heavy," explaining the reasoning for the sentencing.

Mr. A fell at a construction site in March 1997, resulting in paralysis of both legs and was classified as Grade 1 under the severe care needs assessment. However, by November of the same year, his condition improved to the point where he could walk alone with a cane. Despite this, he continued to visit the hospital in a wheelchair, claiming to have paralysis symptoms, and is accused of collecting a total of about 1.84 billion won in insurance benefits from June 1999 to August 2024.

It was found that Mr. A received 1.2 billion won more in insurance benefits than he was actually entitled to. Additionally, Mr. A and Ms. B are accused of deceiving the Korea Workers’ Compensation and Welfare Service by using someone else’s caregiver certificate to receive caregiver payments. When Ms. B borrowed a friend’s caregiver certificate, Mr. A would apply for caregiver expenses from the agency as if he had received care from a certified caregiver.