Used car lease fraud, can it be subject to criminal punishment?

Used car lease fraud is a general term for types of conduct involving false listings, false disclosure of lease assumption terms, and the defrauding of deposits or advance payments, and if such conduct occurred, it may be an issue as the crime of fraud.

The most important thing in this case is what words or materials were actually used to make the other party believe, and whether monetary loss resulted from that.

Under the Criminal Act, the crime of fraud can be established when a person is deceived and property is received or a pecuniary benefit is obtained.

Therefore, if a used car lease contract or a remittance was induced by explaining the condition of the used lease vehicle, whether assumption is possible, the monthly payment, the penalty, and the residual value differently from the facts, a fraud charge may be examined.

In addition, in used car lease fraud, not only the person who directly received money is punished; a person who conveyed a false explanation or actively participated in the process of concluding the used car lease contract may also be judged an accomplice depending on the degree of participation.

Investigative agencies usually consider together ① whether one was aware of the falsity, ② what role one played in the contract, vehicle delivery, and document transfer, ③ whether one received a commission or benefit, and ④ whether one could have foreseen the occurrence of harm.

Conversely, if it is confirmed by objective materials that one merely ran a simple errand or made a formal delivery and had no knowledge whatsoever of the false content or the fraudulent structure, there is also a possibility that liability will be limited.

In addition, if used car lease fraud is recognized as the crime of fraud, imprisonment for up to 20 years or a fine of up to 50 million won may be imposed under Article 347 of the Criminal Act.

However, the actual level of punishment is determined by comprehensively considering various circumstances, such as the amount of loss, the degree of participation in the crime, whether the loss has been recovered, whether there is a criminal record, and the accomplice relationship.

Where the scale of loss from used car lease fraud is large or the fraud was carried out in an organized manner, the possibility of a custodial sentence may also be considered.

Therefore, if you become subject to a used car lease fraud investigation, it is important to organize your conversation records, the contract, remittance records, vehicle description materials, and the scope of your role, and to clearly explain the degree of your involvement.

If you are curious about the more specific application of the law and how to respond, we recommend accurately reviewing the facts and legal issues through a consultation with an attorney experienced in criminal cases.