CONTENTS
- 1. The Client Who Came to Daeryun Over Stock Investment Fraud
- - The Circumstances of the Client Who Was a Victim of Investment Fraud
- - Laws Related to Investment Fraud
- 2. Daeryun's Strategy for a Favorable Judgment in the Stock Investment Fraud Lawsuit
- - Investment Fraud Lawsuit Assistance ① Demand for Repayment of Returns
- - Investment Fraud Lawsuit Assistance ② Claim for Return of Unjust Enrichment
- 3. Result of the Stock Investment Fraud Claim for Return of Investment Funds: “Full Recovery Achieved”
- - Because Investment Fraud Occurs Frequently
1. The Client Who Came to Daeryun Over Stock Investment Fraud
The client, who visited Daeryun stating that he had been a victim of stock investment fraud, could not recover either the principal paid to an acquaintance or the returns the acquaintance had guaranteed, and was in a situation that required the help of a specialist attorney.
The Circumstances of the Client Who Was a Victim of Investment Fraud
Stock investment fraud: we heard about the specific circumstances of the client who became a victim.
The client and the defendant were university classmates. The defendant continually boasted of his abilities and track record and urged the client to invest.
Persuaded by the defendant's claim that there was a high-yield derivative product with a guaranteed return of 14%, the client transferred 50 million won to the defendant.
A month later, the defendant once again persuaded the client, stating that there was an overseas futures derivative product with a guaranteed return of 12%, and the client, believing this, transferred an additional 50 million won.
However, despite the client's repeated requests for repayment of the invested funds, the defendant reportedly had not returned even the principal, let alone the investment returns. |
The client therefore came to Daeryun's specialist attorney and requested assistance in order to recover the money paid to the defendant by filing a lawsuit for the return of stock investment funds and unjust enrichment.
Laws Related to Investment Fraud
The lawsuit for return of investment funds filed by the client refers to a lawsuit filed by an investor who has suffered loss due to improper investment or fraud in order to recover the funds for that investment.
In other words, it is a civil lawsuit intended to protect the rights of investors.
Through it, the losses of victims can be minimized, and legal action can be taken against the person who engaged in the improper conduct.
As with the defendant in this case, where the principal, interest, and returns are not repaid, the crime of fraud may also apply.
Currently in our country, the crime of fraud is punishable by imprisonment for not more than 20 years or a fine not exceeding 50 million won.
The Supreme Court has held that, “regarding whether the crime of fraud through the taking of investment funds is established, even if the person who received the investment at the time of the investment agreement used the funds received from the investor for the investment business explained to the investor, where that person, having no intention or ability to return the principal within a certain period, lied as if the principal would be returned to the investor within a certain period, this constitutes a deceptive act as an element of the crime of fraud.”
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2. Daeryun's Strategy for a Favorable Judgment in the Stock Investment Fraud Lawsuit
We prepared for trial on the claim for return of investment funds and unjust enrichment so that the client, who could not recover the 100 million won principal due to stock investment fraud, could recover the principal along with part of the returns.
The client could also have applied a charge of fraud against the defendant, but did not wish to proceed with a criminal complaint and requested the recovery of the fraud loss as quickly as possible, so we assisted only with the civil litigation.
Investment Fraud Lawsuit Assistance ① Demand for Repayment of Returns
The defendant secured two rounds of investment from the client by guaranteeing returns of 14% and 16%, but did not return either the principal or the returns.
We therefore argued that the defendant should calculate the respective returns on the 100 million won principal and return the total combined amount to the client.
Investment Fraud Lawsuit Assistance ② Claim for Return of Unjust Enrichment
We argued that, even if entrusted with the investment by the client, the defendant either lacked the ability to achieve the principal-guaranteed returns he assured,
or, even if he achieved such returns, had no intention of repaying the plaintiff the principal and its returns,
so this amounted to concluding the stock investment contract by deceiving the plaintiff.
Accordingly, applying the crime of fraud to the defendant, the client revoked the declaration of intent accepting the investment contract,
and we argued that the 100 million won received by the defendant therefore constitutes unjust enrichment, so the defendant must return the stock investment fraud loss to the client.
| ※ Civil Act Article 110 (Declaration of Intent Induced by Fraud or Duress) (1) A declaration of intent induced by fraud or duress may be revoked. |
| ※ Civil Act Article 741 (Nature of Unjust Enrichment) A person who, without legal cause, obtains a benefit from the property or services of another and thereby causes loss to that other person must return the benefit. |
3. Result of the Stock Investment Fraud Claim for Return of Investment Funds: “Full Recovery Achieved”
Accepting Daeryun Law Firm's argument regarding the stock investment fraud, the court ruled that “the defendant shall pay the plaintiff 110 million won.”
As a result, the client was able to recover the 100 million won principal along with 10 million won in returns.
Because Investment Fraud Occurs Frequently
With stock investment fraud, even if the other party is caught, in many cases the victim cannot recover the loss, such as the principal, let alone damages, if the party has already disposed of or concealed assets.
It is therefore advisable to respond promptly, such as by reporting the investment fraud, from the moment the harm is discovered.
If, like the client above, you do not wish to proceed with a criminal lawsuit by applying a charge of fraud and only wish to recover the stock investment fraud loss, it is important to prepare the civil trial quickly with the help of a specialist attorney.
At Daeryun, a criminal attorney reviews the direction of the response, and where necessary, works with the evidence examination center and digital forensics center to handle the securing and analysis of materials in one place.
If you need help, you may request a consultation at your convenience through 🔗Legal Consultation Booking.
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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