The CEO who received 1.7 billion won in investment and did not repay the principal and interest... Prosecutor: “No fraud charges”

Plaintiffs complained of unfair use for “personal use”
Prosecutors say, “There is no fact that the investment funds were used for personal purposes… Acknowledgment of worsening management situation.”

Controversy is brewing after the CEO of an investment company who was handed over to the prosecution on charges of embezzling investment funds exceeding KRW 1 billion was found not guilty.

On December 5 of last year, the Seoul Eastern District Prosecutors' Office decided not to indict Mr. A, the CEO of the company, who was sent on charges of fraud.

Mr. A was accused of receiving approximately 1.7 billion won in investment money from 13 victims over a period of about a year starting in 2019, but failing to return the principal and interest. The plaintiffs claimed that although Mr. A promised to pay a certain percentage of the investment, he did not even repay the principal and used it for personal purposes.

Mr. A completely denied the charges. They refuted that the failure to pay the profits was because the borrowers did not repay the loans due to business difficulties due to COVID-19. At the same time, he emphasized that efforts are being made to collect the debt by applying for a bond seizure order against the borrower who is in arrears.

The prosecution determined that Mr. A was not guilty. The prosecution said, “After checking the company account transaction details, it was not confirmed that the suspect personally used the investment funds,” and “When looking at the financial statements, it is acknowledged that the company’s situation has worsened since 2019.”

He added, “It appears that the court has accepted the request for a bond seizure and collection order against the car owner,” adding, “Considering the circumstances in which the plaintiffs were informed of the possibility of loss of principal, it cannot be said that the suspect deceived the plaintiffs.”

Attorney Park Seong-dong of Daeryun Law Firm, who represented Mr. A, said, “In order to constitute a crime of fraud, an act of deceiving the other party with intent must be included. In the case of Mr. A, the charge was not established because it was acknowledged that he did not receive money due to the worsening business situation of the borrowers.”

Reporter Kim Jong-cheol (jckim99@sportsseoul.com)

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CEO who received 1.7 billion won in investment and did not repay principal and interest... Prosecutors say, “There are no suspicions of fraud” (Shortcut)