CONTENTS
- 1. A Fraud Victim Client Who Needed a Civil Action for Damages
- 2. Response Strategy in a Civil Action for Damages to Recover Fraud Losses
- - Assistance with Damages for a Fraud Victim: Asserting the Defendants' Tort Liability
- 3. Result of Assistance with the Civil Action for Damages: Success in Claiming the Full Amount of Losses
- - A Guide to Preventing Unauthorized Fund-Raising Fraud
1. A Fraud Victim Client Who Needed a Civil Action for Damages
This is the account of the client who requested assistance through a civil action for damages.
The client had suffered a loss of approximately KRW 100 million at the hands of defendants who organized an investment-leading fraud ring and committed investment fraud.
The plaintiffs randomly sent messages through an open chat room on social media, claiming things such as that investors could guarantee their principal and earn returns of more than 100 percent in a short period using investment information, and they led the conversation by continually posting false content suggesting that profits were actually being generated.
The victims who believed this ended up signing up for a fraudulent investment website, and all of the money the victims transferred was misappropriated through accounts opened under others' names.
After realizing that they had fallen victim to investment fraud, the client, a fraud victim, proceeded with a criminal complaint together with the other victims, and then sought to secure a title for execution through a civil action for damages in order to recover the loss.
As a Fraud Victim, Should You Pursue an Action for Damages in Addition to a Criminal Complaint?
When a person has been defrauded, the reason for securing a title for execution through an 🔗action for damages is that a favorable judgment in a civil suit confers a legally enforceable right.
A title for execution serves as the basis for compulsory execution through legal procedures if the perpetrator does not voluntarily make monetary compensation to the victim.
Specifically, once the court determines the amount of damages through a civil suit and issues a judgment to that effect, the victim may use that judgment as a title for execution to request compulsory execution against the perpetrator's property.
To pursue a claim for damages for harm caused by 🔗the crime of fraud as described above, the following elements must be objectively proven.
2. Response Strategy in a Civil Action for Damages to Recover Fraud Losses
The attorney provided the following assistance to recover the fraud losses for the client who requested a civil action for damages.
The attorney gathered evidence that the client had suffered economic harm as a result of the defendants' conduct, and argued that the defendants were liable for their tortious acts as follows.
Assistance with Damages for a Fraud Victim: Asserting the Defendants' Tort Liability
The defendants were a professional investment-leading fraud ring, a sophisticated criminal organization that had set up fraudulent investment websites for stocks, Bitcoin, and the like.
They then lured in numerous victims, including the client, posing as investment experts, signed them up for fraudulent investment websites, and misappropriated their investment funds by deceiving them into believing they could earn high returns.
As a result, the defendants had been sentenced to imprisonment on charges including aiding and abetting a violation of the Act on the Regulation of Conducting Fund-Raising Business Without Permission, aiding and abetting a violation of the Special Act on Telecommunications-based Financial Fraud, and a violation of the Electronic Financial Transactions Act.
The attorney argued that it was clear the defendants' tortious acts had caused losses exceeding KRW 1 billion to approximately 30 people, including the client, and that they were obligated to pay the amount of loss the client had sustained as a result of the offenses.
Reference: Supreme Court Decision dated May 22, 1992, 91Da37960
According to this precedent, although a civil court is not bound by the facts found in a criminal trial, the facts found in a related criminal judgment that has already become final may be regarded as strong evidence, absent special circumstances.
3. Result of Assistance with the Civil Action for Damages: Success in Claiming the Full Amount of Losses
As a result of the assistance with the civil action for damages, the client succeeded in having the claim for the full amount of the fraud losses upheld.
The client who entrusted the action for damages explained that, "Because the amount I was defrauded of was so large, I worried a great deal that I might not be compensated for my losses. I am glad I entrusted the action for damages to the attorney."
An action for damages for losses caused by fraud requires proof of the perpetrator's deceptive conduct and the fact that loss resulted from it.
Because the facts and the issues in an action for damages are often complex and intertwined, it can be helpful to proceed with a legal review by an attorney.
Daeryun Law Firm provides assistance from the initial consultation onward, assigning attorneys by field, such as criminal and civil matters, to build a more detailed strategy and offer a response tailored to each client's situation.
If you are seeking assistance to recover from fraud losses in a situation like the one above, you are welcome to contact 🔗an attorney at Daeryun Law Firm.
A Guide to Preventing Unauthorized Fund-Raising Fraud
That said, you may still suffer harm from unauthorized fund-raising fraud even after becoming familiar with these preventive measures.
Suffering harm from fraud is never the victim's fault.
Rather than hiding the harm or trying to resolve it alone while suffering in silence, in such cases you should consult an attorney right away.
The earlier you receive assistance from a legal professional after the harm occurs, the greater the likelihood of recovery. The attorneys at Daeryun will stand by your side until your losses are recovered.
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.
