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I have been the subject of a complaint for the crime of fraud on suspicion of an integrated refinancing loan.

Hello. A little while ago, needing urgent cash, I was referred to a loan broker and received a loan of about 200 million won from a commercial bank. I was told it was a lawful method, but I was the subject of a fraud complaint on suspicion of loan fraud and ended up under police investigation. But even when borrowing from a commercial bank, I received the loan through a proper loan process, so is this something to be subjected to a complaint for the crime of fraud? If I am subjected to a complaint for the crime of fraud in relation to an integrated refinancing loan, will I be punished?

Complaint for the crime of fraud

Loan fraud

Fraud complaint

Answer to Related Inquiry

Author: 김국일

Hello.

You appear to have carried out an integrated refinancing loan (commonly called loan rollover), in order to convert high-interest loans owed to multiple financial institutions into lower-interest loans and to reduce your repayment burden.

Since the actual loan process also went through a formal review at a commercial bank and the loan was executed, there appears to be no basis to view this process itself as unlawful or as loan fraud.

This means that, if there were no circumstances of intentionally stating false facts or deceiving the other party (that is, if you had the ability to repay), there is no reason to be subjected to a complaint for the crime of fraud.

Moreover, the fact that you did not deliberately disclose unfavorable terms not stated in the contract or in the statutes cannot be made an issue (Ulsan District Court 2023Godan708).

Considering these circumstances together, if you proceeded with a normal loan without any intent to defraud and there was no clear deceptive act, it can be said that there appears to be no offense.

Accordingly, the possibility of being punished as a result of a complaint for the crime of fraud appears to be low.

Of course, where a complaint for the crime of fraud has been filed, there is also a possibility of punishment under Article 347 of the Criminal Act, but this can be established only where there was a deceptive act, a property benefit was obtained as a result, and intent and premeditation are also proven.

Therefore, if you come under police investigation due to a complaint for the crime of fraud, it is important to explain these facts consistently and to secure and submit as much material as possible that can prove the circumstances at the time, such as the loan contract, the content of consultations, text messages, and recording files.

A fraud complaint case can be legally complex, so rather than responding alone, we recommend that you consult with a legal professional such as an attorney and respond actively.