Environmental Specialist Attorney | 'Acquittal' in an Eco-Friendly Energy Business Fraud Case Worth Roughly 10 Billion Won

The environmental specialist attorney analyzed this case not as a simple fraud case but as a case combining ① the complex licensing and technical requirements unique to the eco-friendly energy business, ② information asymmetry in the process of recruiting investors and contracting parties, and ③ the issue of distinguishing the scope of responsibility between management and working-level staff.

In particular, in the eco-friendly energy business, the truthfulness of the explanations regarding the actual feasibility of installing equipment, whether environmental licensing is obtained, and the feasibility of the business becomes the key issue, and if this is not accurately understood, a structure can be formed in which even working-level staff bear criminal responsibility.

Organizing, Joining, or Participating in a Criminal Organization

>Organizing a criminal organization or group, or joining one, constitutes an offense immediately<

* Organizing : the act of forming a new criminal organization or group
* Joining : the act of entering an existing criminal organization or group

Sentencing for Organizing a Criminal Organization, etc.

Criminal Act
Article 114 (Organization of a Criminal Group, etc.) A person who organizes, joins, or acts as a member of an organization or group whose purpose is to commit a crime punishable by death, life imprisonment, or imprisonment for a maximum term of four years or more shall be punished by the penalty prescribed for the intended crime. Provided, that the penalty may be mitigated.

Sentencing for Fraud and Violation of the Act on Aggravated Punishment of Specific Economic Crimes

Criminal Act
Article 347 (Fraud) ① A person who, by deceiving another, receives the delivery of property or obtains a pecuniary advantage shall be punished by imprisonment for not more than 10 years or by a fine not exceeding 20 million won.

Act on Aggravated Punishment of Specific Economic Crimes Article 3 (Aggravated Punishment of Specific Property Crimes) ① A person who commits the crime under Article 347 (Fraud) of the "Criminal Act" shall, where the value of the property or pecuniary advantage acquired or caused to be acquired by a third party through the criminal act (hereinafter referred to as the "amount of profit" in this Article) is 500 million won or more, be subject to aggravated punishment according to the following classifications.
1. Where the amount of profit is 5 billion won or more: life imprisonment or imprisonment for at least 5 years
2. Where the amount of profit is 500 million won or more but less than 5 billion won: imprisonment for a definite term of at least 3 years
② In the case of paragraph (1), a fine corresponding to an amount up to the amount of profit may be concurrently imposed.

The environmental attorney first closely analyzed the nature and scope of the work the client performed within the company.

In the course of the investigation, the core of the fraud at issue lay in the design of the business structure, the operation and management of investment funds, and whether contracting parties were recruited through false or exaggerated explanations. The environmental attorney established, through objective materials, that the client had no involvement whatsoever in these core decision-making processes.

The client had not participated in the planning or structural design of the eco-friendly energy business, and had no authority to decide the use of investment funds or to manage or direct funds.

It was also not confirmed that he had directed or led any false explanation to contracting parties regarding the feasibility or profit structure of the business.

On this basis, the environmental attorney emphasized that the client was merely an ordinary staff member who performed assigned duties under the instructions of management, and was not an accomplice with control over or decision-making authority concerning the commission of the crime.

Through this, the attorney persuasively explained to the court that recognizing participation in a crime based solely on mere membership in an organization or the fact of performing duties is contrary to the principles of criminal liability.

The environmental specialist attorney next focused on the structure of information asymmetry between management and the staff in charge of operations.

In this case, the representative director had repeatedly explained to employees, including the client, to the effect that "there is no legal problem," "there is no problem with the relevant permits and the conduct of the business," and "this is a legitimate eco-friendly energy business."

The environmental specialist attorney emphasized that such statements were not merely internal opinions but constituted official explanations on which the staff in charge had no choice but to rely in carrying out their duties.

The attorney also specifically demonstrated that, given the company's organizational structure, the client was in a position where he had no choice but to perform his duties on the premise of the judgment and explanations of the representative director and management, and that he had no authority or practical means to independently verify the actual feasibility or legal appropriateness of the business.

Through this, the environmental specialist attorney presented as a key argument that the client did not recognize the crime and actively participate in it, but rather was a subordinate actor without intent who was ultimately used in the offense through the deception of management.

This argument served as a decisive basis for negating the intent and awareness elements that are essential to the establishment of the crime of fraud.

In addition, the environmental law specialist attorney strategically organized the matter so that the client's subsequent conduct could serve as an important mitigating factor in determining criminal liability.

After recognizing during the investigation that harm had resulted from his conduct, the client supported the down-payment refund process and actively cooperated in responding to the victims' complaints.

The environmental law specialist attorney emphasized that this conduct was not a mere formal response but an effort toward substantive recovery of the harm.

In criminal trial practice, the offender's attitude after the offense, efforts to recover the harm, and whether the relationship with the victim has been restored are considered important factors in sentencing.

On the basis of these legal principles, the environmental law specialist attorney highlighted that the client's subsequent measures were circumstances clearly distinguishable from those of an intentional participant in a crime.

This case is one in which the availability of assistance from an environmental attorney who understands the distinctive features of the environment and energy business affected the outcome.

If you face criminal risk in an environment-related business, you need professional legal assistance that can comprehensively analyze everything from the business structure to the scope of liability.

The environment and energy business is a high-risk area in which licensing requirements, technical feasibility, environmental regulations, and the structure of criminal liability are intricately intertwined.

In particular, in the case of eco-friendly energy, new and renewable energy, and ESG businesses, a person may become involved in a criminal case even while carrying out work without an understanding of the business structure, and there are not a few instances in which a person bears significant legal liability from the investigation stage even though he or she did not lead the actual offense.

In such situations, the assistance of an environmental attorney is crucial in accurately analyzing the business structure and the attribution of liability within the organization, thereby preventing the unnecessary expansion of criminal liability.

The environmental attorney, on the premise of the distinctive features of the environment and energy industry, clearly distinguishes the liability of those who carry out the work in practice from that of the decision-makers, and comprehensively reviews environment-related statutes and criminal legal principles to respond to the case in a multidimensional manner.

In particular, if the response in the early stage of the investigation is inadequate, an unfavorable determination that is difficult to reverse at the later trial stage may become entrenched, so it is more important than anything to establish a response strategy through professional legal consultation as soon as the matter arises.

At Daeryun Law Firm, an environmental attorney who has handled both the environment and energy field and criminal cases becomes directly involved from the early stage of the case and presents a response direction tailored to the client's situation.

If you face criminal risk arising from an environment-related business, or if you are facing an investigation or trial, we encourage you to review your response options through professional consultation before it is too late.

The choice you make now may affect the scope and outcome of future criminal liability.