Jeonse Fraud Gang That Embezzled 13.8 Billion Won Through 'Zero-Capital Gap Investment' Appeals to Supreme Court

[Financial News] A gang that embezzled 13.8 billion won from 155 multi-family jeonse tenants through 'zero-capital gap investment' was sentenced to heavy penalties in the second trial and has filed an appeal to the Supreme Court.
According to the legal community on the 27th, the side of housing rental business operator Gu Mo (55), who was indicted on charges of fraud and other offenses, filed an appeal against the appellate court's ruling on the 17th at the Seoul Southern District Court. The accomplice Byeon Mo (54), who was also brought to trial, filed an appeal on the 21st. Thus, the two will receive the final judgment of the Supreme Court.
Gu and Byeon, from February 2017 to October 2023, used four multi-family houses in Yeongdeungpo-gu, Geumcheon-gu, and Dongjak-gu, Seoul, to embezzle 13.5 billion won in deposits from 155 tenants and 300 million won in jeonse loan funds, and were brought to trial in custody last July.
They signed so-called 'can jeonse' contracts, where the jeonse price was higher than the building's value, and used the deposits to cover the purchase price. It was also investigated that they took out a 300 million won loan by presenting a false tenant when funds ran short.
The first trial court stated, "Although there are many victims and the damage amount is very large, the defendants have no history of criminal punishment other than minor fines," and sentenced Gu to 10 years in prison and Byeon to 6 years. However, they filed an appeal in January citing legal misinterpretation and unfair sentencing.
However, the second trial judgment did not change significantly. The 3-3 Criminal Appeals Division of the Seoul Southern District Court (Presiding Judge Yoo Hwan-woo) dismissed Gu's appeal on the 15th and upheld the original sentence of 10 years in prison. Byeon, who was sentenced to 6 years in the first trial, was sentenced to 5 years, reduced by one year.
The court stated, "The number of victims in this case is very large, and the damage amount exceeds 13.8 billion won, which is very significant," and "The defendants have not compensated most of the victims, and many victims want punishment," it ruled.

welcome@fnnews.com Jang Yu-ha Reporter