CONTENTS
- 1. Used Car Fraud Attorney | The Circumstances of the Case in Which the Client Was Suspected of Used Car Fraud
- 2. Used Car Fraud Attorney | The Assistance Provided
- - Securing Records of Actual Vehicle Transactions and Settlements
- - Denying False Listings and Fraudulent Intent
- - Explaining the Liquidity Squeeze Resulting From Business Deterioration
- 3. Used Car Fraud Attorney | Case Outcome: A 'Non-Referral' Decision
- - Legal Information Relating to the Crime of Fraud
- - If You Require the Assistance of a Used Car Fraud Attorney
1. Used Car Fraud Attorney | The Circumstances of the Case in Which the Client Was Suspected of Used Car Fraud
The client who sought out a used car fraud attorney operated a used car dealership, carrying on a business of purchasing auctioned vehicles and vehicles with accident histories, then servicing and reconditioning them for sale.
He had operated under a structure in which funds were raised through joint investment with acquaintances to purchase vehicles, and a portion of the sales profits was distributed to the investors.
In the early stages, actual transactions and profit distribution proceeded normally, but the cash flow subsequently deteriorated as a downturn in the used car market, delays in vehicle sales, and problems with partner companies coincided.
In this process, some agreements were canceled, the return of investment funds was delayed, and the complainant asserted that the client had, from the outset, possessed neither the intention nor the ability to return the investment funds, filing a criminal complaint on suspicion of fraud.
The client was thus booked as a suspect in a criminal case and requested a consultation with a used car fraud attorney in order to consider how to respond.
2. Used Car Fraud Attorney | The Assistance Provided
The used car fraud attorney focused on proving that the client had no intent to commit fraud, carefully organizing the transaction structure and the records of the actual business operations.
The attorney also concentrated on clarifying the true nature of the entire case, using objective materials to explain the cash flows and transaction structure that the investigative authorities might misunderstand.
Securing Records of Actual Vehicle Transactions and Settlements
Through the vehicle auction records, prior registration records, sales agreements, and settlement account records, the used car fraud attorney proved that this had been a normal business structure in which vehicles were continuously purchased and sold.
The attorney also submitted records showing that the investment funds had, over a certain period, actually been settled together with the profits, and emphasized that there had been no purpose to embezzle.
Denying False Listings and Fraudulent Intent
The used car fraud attorney explained that the contract delays for some advertised vehicles and the confusion arising in the course of completing sales were circumstances that could occur given the nature of the industry.
The attorney constructed the defense around the fact that no circumstances were confirmed in which the client had intentionally posted nonexistent vehicles or deceived consumers.
Explaining the Liquidity Squeeze Resulting From Business Deterioration
The used car fraud attorney gave a detailed account of how the cash liquidity had deteriorated due to a combination of circumstances, including a downturn in the used car market, a decline in vehicle turnover, and problems with partner companies.
On this basis, the attorney emphasized that the failure to return the investment funds was not an intentional embezzlement but a temporary liquidity squeeze arising in the course of business operations.
3. Used Car Fraud Attorney | Case Outcome: A 'Non-Referral' Decision
Accepting the used car fraud attorney's arguments, the police found it difficult to recognize the intent to commit the crime of fraud on the client's part and issued a non-referral decision.
Legal Information Relating to the Crime of Fraud
It should be noted that a used car transaction dispute is not merely a contractual matter but may lead to criminal punishment.
Conduct such as false listings advertising nonexistent vehicles, sales concealing a flood or accident history, odometer tampering, and failing to deliver a vehicle after receiving payment may give rise to the crime of fraud under the Criminal Act.
In addition, if a person intentionally misrepresented the condition of a vehicle or the terms of a transaction so as to induce a consumer's mistaken belief and received money, a deceptive act may be recognized.
Where the scale of the harm is large or a repeated transaction structure is confirmed, even the applicability of the Act on Aggravated Punishment of Specific Economic Crimes may become an issue, so an early response is important.
Accordingly, one should secure materials that objectively prove the course of the transaction, such as text message records, the vehicle performance record, the agreement, account transfer records, and advertising postings, and organize how to respond.
Category | Level of Punishment |
|---|---|
Crime of fraud under the Criminal Act | Imprisonment for not more than 20 years or a fine not exceeding 50 million won |
Fraud under the Act on Aggravated Punishment of Specific Economic Crimes (gain of 500 million won or more) | Imprisonment for a definite term of not less than 3 years |
Fraud under the Act on Aggravated Punishment of Specific Economic Crimes (gain of 5 billion won or more) | Life imprisonment or imprisonment for not less than 5 years |
Violation of the Motor Vehicle Management Act | A fine or an administrative disposition possible |
If You Require the Assistance of a Used Car Fraud Attorney
In a case such as used car fraud, a variety of materials serve as key evidence, including text messages, vehicle registration records, the performance record, account records, and advertising screens.
In particular, whether the crime of fraud is established may differ depending on how the actual explanation was given during the transaction.
Accordingly, where a complaint has been filed against you, rather than responding emotionally, it is important to organize the transaction structure and cash flows objectively and to determine how to respond.
Daeryun, the ninth-largest law firm in Korea (based on 2025 value-added tax filings with the National Tax Service), assists with cases through its accumulated experience.
Should you require Daeryun's assistance, you may 🔗book a legal consultation.
This content is based on actual case studies of Daeryun Law LLC with some adaptations, and the copyright belongs to our firm.
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