CONTENTS
- 1. A Client Facing the Risk of a Fine for Fraud
- - The Provisions on the Crime of Fraud and the Level of Punishment
- 2. A Fine for Fraud and the Importance of an Attorney's Assistance
- - Proof of the Position as a Broker
- - Proof of the Absence of an Intent to Deceive
- - Clarification of Where Responsibility for the Non-Performance of the Contract Lay
- 3. The Risk of a Fine for Fraud Resolved Through a Non-Referral Disposition
- 4. Methods of Response to Avoid the Punishment of a Fine for Fraud
- - Prompt Retention of a Specialized Attorney
- - Organizing the Facts and Analyzing the Elements of the Crime of Fraud
- - Securing and Submitting Objective Evidentiary Materials
- 5. Fines for the Crime of Fraud | The Expertise of Daeryun Law Firm
1. A Client Facing the Risk of a Fine for Fraud
The circumstances of the client facing the risk of a fine for fraud are as follows.
At a time when demand for medical nitrile gloves was surging due to COVID-19, the client took on the role of brokering a glove supply contract between a domestic company and an overseas manufacturer.
The client conveyed to domestic Company A information that overseas manufacturer Company B held the permits and facilities to manufacture gloves and was able to supply them, and on this basis Company A concluded a contract with Company B and remitted a down payment of approximately 200 million won.
However, when Company B subsequently failed to perform the contract because of export restrictions caused by COVID-19, Company A filed a fraud complaint, alleging that the client had deceived it with false information and taken the down payment, and the client became embroiled in a legal dispute.
The Provisions on the Crime of Fraud and the Level of Punishment
The crime of fraud is the offense of unlawfully acquiring property or benefit by deceiving another, and it is provided for in Article 347 of the Criminal Act.
Where the crime of fraud is established, imprisonment for not more than 20 years or a fine of not more than 50 million won may be imposed.
| Category | Details |
| Statutory Provision | Article 347 of the Criminal Act |
| Statutory Penalty | Imprisonment for not more than 20 years or a fine of not more than 50 million won |
| Elements of the Offense | Deception, mistake, an act of disposition, and the acquisition of property or pecuniary benefit |
2. A Fine for Fraud and the Importance of an Attorney's Assistance
In order to avoid criminal punishment, including a fine for fraud, the help of a criminal law attorney is essential.
In this case as well, the client was the subject of a complaint even though the client had in fact performed only a brokering role with no intent to deceive, and the assistance of an attorney specializing in criminal law was essential to prove this as a matter of law.
Proof of the Position as a Broker
The client was not a party to the contract but a mere broker, who performed only the role of conveying Company B's information to Company A.
The attorney collected and submitted materials clearly establishing that the client had never directly received or managed the down payment and was not a party to the conclusion of the contract, such as the records of the parties stated in the contract and the route by which the down payment was remitted.
Proof of the Absence of an Intent to Deceive
For the crime of fraud to be established, there must be an intentional act of deception.
The attorney proved that the client had merely conveyed, as received, the information obtained from Company B, and had not intentionally provided false information.
The attorney also emphasized that the client was likewise a victim who had not received the brokerage fee promised by Company B.
Clarification of Where Responsibility for the Non-Performance of the Contract Lay
The attorney made clear that responsibility for the non-performance of the contract lay with Company B, the actual party to the contract, and that the client was a third party who bore no contractual obligation.
The attorney persuasively conveyed to the police the force majeure situation of the export restrictions caused by COVID-19, together with the point that Company B was the party that had to return the down payment directly.
3. The Risk of a Fine for Fraud Resolved Through a Non-Referral Disposition
The client, who had been concerned about a fine for fraud, obtained a non-referral disposition from the police through the active response of a criminal law attorney.
A non-referral disposition is one in which the police, having judged as a result of the investigation that the charge is not established or that there is no need to prosecute, do not refer the case to the prosecutors' office.
In the course of the police investigation, it was clearly recognized that the client was a mere broker rather than a party to the contract and that there was no direct act of deception or intent to commit fraud.
In addition, as it was confirmed that the client was likewise a victim who had not received the brokerage fee promised by Company B, the client was cleared of the fraud charge and was able to successfully conclude the legal dispute.
4. Methods of Response to Avoid the Punishment of a Fine for Fraud
In order to avoid the punishment of a fine for fraud, a strategic response is necessary from immediately after the complaint is filed.
A fine for fraud may be imposed in an amount of up to 50 million won, and a sentence of imprisonment may also be pronounced, so the initial response determines the outcome of the case.
Through the example of this case, one can confirm an effective method of response that overcame the risk of a fine for fraud.
Prompt Retention of a Specialized Attorney
If you have been the subject of a fraud complaint, it is important to retain a criminal law attorney.
This is because professional legal assistance must be received from the early stage of the investigation in order to prevent unfavorable statements and to collect evidence systematically.
In this case as well, an attorney became involved from the early stage and was able to clearly organize the client's position and role.
Organizing the Facts and Analyzing the Elements of the Crime of Fraud
For the crime of fraud, the facts must be clearly organized with respect to each of the elements of the offense: deception, mistake, an act of disposition, and the acquisition of property.
In this case, the points that the client was a mere broker, that he did not intentionally provide false information, and that he did not directly receive the down payment were organized to prove the absence of an intent to deceive.
Securing and Submitting Objective Evidentiary Materials
For the crime of fraud, it is difficult to clear a charge through mere assertion alone.
Therefore, it is important to collect objective evidence, such as the contract, emails, message records, and financial transaction records, and to submit it to the investigative authorities.
In this case as well, the materials proving that the client was a victim who had not received the brokerage fee played a decisive role in obtaining the non-referral disposition.
5. Fines for the Crime of Fraud | The Expertise of Daeryun Law Firm
Daeryun Law Firm provides specialized solutions for clients concerned about a fine imposed for the crime of fraud.
At Daeryun Law Firm, attorneys who specialize in criminal cases accurately identify the characteristics of a fraud case and respond systematically so that the client may be cleared of the charges.
If you have been subjected to an unfounded complaint, as in this case, or are concerned about a fine for the crime of fraud, you may resolve the matter through the extensive experience and know-how of Daeryun Law Firm.
If you are facing concerns about a charge of fraud, please feel free to request a consultation with Daeryun Law Firm at any time.
This content is based on actual case studies of Daeryun Law LLC with some adaptations, and the copyright belongs to our firm.
Unauthorized reproduction, duplication, or distribution and other copyright infringements may result in legal action under applicable laws.
