A group that purchased four studio-type multi-family houses through "zero-capital gap investment" and embezzled 13.8 billion won from 155 tenants has been sentenced to prison. They are accomplices of landlord A, who was sentenced to 10 years in prison in the first trial.
On December 17, Judge Seo Youngwoo of the 12th Criminal Division of the Seoul Southern District Court sentenced B, who was indicted on fraud charges, to three years in prison. B is both the spouse of A and the owner of the buildings. However, considering that A is currently serving a prison sentence, the court determined that allowing B to handle asset disposal and related matters would help recover damages for the victims, and therefore did not order legal detention.
C, who was in charge of building management and related tasks, was also sentenced to three years in prison. In addition, five others who were tried on fraud charges and D, who was indicted for extortion, each received suspended prison sentences.
Between February 2017 and October 2023, the group was accused of participating in the scheme to defraud 155 people of 13.5 billion won in jeonse deposits and 300 million won in jeonse loan funds in Yeongdeungpo-gu, Geumcheon-gu, Dongjak-gu, and other areas of Seoul. They engaged in so-called "can jeonse" contracts, signing lease agreements at prices higher than the actual value of the buildings and using the deposits to cover the purchase prices.
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