If you are accused of being an accomplice in a work loan fraud... "Early response is important"
Recently, ‘work loan’ organizations have been on the rise. According to a survey by the Financial Supervisory Service, the number of reports of damage from illegal private financing is increasing every year: 8,043 cases in 2020, 9,918 cases in 2021, 10,913 cases in 2022, 13,751 cases in 2023, and 15,397 cases last year. They target ordinary people who need urgent money with phrases such as ‘100% approval for everyone’ and ‘guaranteed credit rating upgrade’. In particular, because work loans are similar to the general loan process, loan applicants may participate in crimes without their knowledge and be subject to criminal punishment as accomplices. In fact, courts are tending to severely punish loan applicants who lent their names to work loans as accomplices who played an essential role in the crime. Even if the loan applicant did not know the specific method of committing the crime, if he or she knew or could have sufficiently anticipated that illegal results may occur while participating in the abnormal lending process, he or she may be recognized as a co-principal of conspiracy due to ‘intentional negligence.’ In this regard, Daeryun Law Firm lawyer Choi Han-sik (pictured) said, “Considering the structure, the loan client is liable to be punished as an accomplice in fraud or forgery of private documents, so early response is more important than anything else.” Attorney Choi served as head of the legal team at a large corporation and bank. Below is a Q&A with Attorney Choi. -What is a work loan? ▲Work loans, a type of financial fraud, refer to the entire act of defrauding financial institutions and obtaining a loan by falsifying documents such as employment certificates and withholding tax receipts of people who are not qualified for loans. Recently, the method has become more sophisticated, and brokers register loan applicants as regular employees in shell companies, etc., and then create salary transfer details or four major insurance payment records for several months to swindle loans. - What punishment will be imposed when caught? ▲ Work loans are a complex crime that combines several criminal crimes, and can be punished as follows depending on the act. First, fraud is established. The act of defrauding a financial institution with false documents to obtain a loan is itself a crime of fraud, and is punishable by imprisonment for up to 10 years or a fine of up to 20 million won. If the amount of misappropriation is more than 500 million won, the Act on the Aggravated Punishment of Specific Economic Crimes (Special Police Act) is applied and a much more severe punishment, such as imprisonment for more than 3 years, is applied. Also, since certificates of employment and income proof documents are forged during the loan process, the crime of forging private documents (Article 231 of the Criminal Act) and the crime of using forged documents (Article 234 of the Criminal Act) are applied. This corresponds to a prison term of up to 5 years or a fine of up to 10 million won. In addition, if you transfer or rent access media such as a bankbook or card at the broker's request, you will be subject to a heavy punishment of up to 5 years in prison or a fine of up to 30 million won for violating Article 49 of the Electronic Financial Transaction Act. The most important thing is that even if the loan applicant pleads that he simply lent his name, there is a very high possibility that he will be punished as an accomplice of a criminal organization. The court considers the act of providing one's name and cooperating with the loan application while knowing the dangers of work loans as an essential contribution to the crime and holds the broker responsible for the same responsibility. - The first thing to do when you find out that you have already been involved in work loans is ▲ Even if you passively followed the broker's instructions, there are many cases in which work loans are recognized as accomplices in fraud and forgery of private documents and are sentenced to prison. Therefore, as soon as you are aware of your involvement, you must stop all procedures and quickly initiate legal action. First, you must secure all relevant evidence, such as call recordings with the broker, messenger conversation details, advertising texts or postings, and deposit/withdrawal details. Based on the obtained data, it is important to consult with a legal expert to objectively analyze the extent of one's participation and intentionality, and to devise a strategy for how to make a statement during the investigation stage. If a loan has already been issued, one can consider surrendering through consultation with a lawyer. However, hasty surrender may result in admitting all charges, so you must obtain legal assistance to determine when and how to surrender. In addition, it is also necessary to immediately contact the financial institution that issued the loan, inform them of the fraudulent loan, and take measures to prevent the spread of damage, such as suspending payments. - Representative risk signals of work loans that the general public can distinguish are ▲ Recently, as non-face-to-face lending has become more active, there are many cases of people approaching through SNS or text messages with things like 'government-supported low-interest refinance loan' and '100% approval regardless of credit rating'. They pretend to be a normal procedure and induce the installation of apps from unknown sources, or ask for key personal information, such as a copy of ID card, bankbook, check card, and public certificate password, claiming that it is necessary to issue a loan. The information transmitted in this way is directly misused for crimes such as falsifying documents or opening a bank account in the name of the loan applicant, so you should never respond. Also, if an advance payment is requested for fees, work expenses, deposits, computer costs, etc., this is 100% fraud. Official financial institutions never recommend loans through text messages or SNS, or ask for money as a fee before executing a loan. Reporter Kwon Byeong-seok (bsk730@fnnews.com)[View full article]
If you are accused of being an accomplice in a work loan scam..."Early response is important" (link)