"I'm a senior chairman of a conglomerate".. Fraudster who boasted business connections, here's the method...

[Financial News] A man in his 60s was sentenced to prison for embezzling over 160 million won by claiming connections with a prominent conglomerate chairman and promising to broker construction subcontracts.
According to the legal community on the 17th, the Seoul Eastern District Court's Criminal Division 3 (Presiding Judge Lee Ho-dong) sentenced Mr. Jang (65), who was indicted on fraud charges, to two years in prison on the 27th of last month.
Mr. Jang was accused of defrauding Mr. Kim, the representative of a construction company in Gwangju Gwangsan-gu, by claiming, "I am a high school senior of the chairman of HDC Hyundai Development Company, the contractor for the Gwangju Hakdong 4 District housing redevelopment project, and a former executive of Hyundai I'Park, so I can help your company get a demolition subcontract from HDC Hyundai Development Company." 
He reassured the victim by saying, "The demolition contract talks with HDC Hyundai Development Company have been well conveyed. It is almost confirmed," and "I have directly met with the chairman and finished the talks," as stated in the judgment. 
In October of the same year, he demanded cash near the headquarters of Hyundai Development Company in Yongsan-gu, Seoul, under the pretext of needing funds to lobby executives such as the managing director, claiming that the construction contract was finalized. Mr. Kim believed this and handed over a total of 163.38 million won in 58 transactions from October 2019 to the end of 2020.
However, it was investigated that Mr. Jang had not received any demolition subcontract promises from the conglomerate chairman and had no real connections with personnel from HDC Hyundai Development Company or other Hyundai affiliates. It was also noted that Mr. Jang had previously committed a sales fraud during his time managing the Hyundai I'Park basketball team and had a history of various brokerage frauds impersonating Hyundai Group connections, for which he had been criminally punished. In fact, Mr. Jang was sentenced to probation twice for fraud in 2019 and 2021 by the Seoul Southern District Court. 
The court explained the sentencing reason, stating, "The defendant committed multiple frauds by leveraging his experience working at Hyundai affiliates, and even during the probation period when the fraud conviction was confirmed, he embezzled a large amount," adding, "However, it also considered that the victim spent money with the intention of obtaining the contract through improper means." 


yesji@fnnews.com Kim Yeji Reporter