Suncheon Attorney Specializing in Criminal Law, Complaint Representation Case | A Suncheon Attorney Specializing in Criminal Law Conducted Complaint Representation for Unauthorized Fund-Raising, and the Perpetrators Received Actual Custodial Sentences

The Suncheon attorney specializing in criminal law confirmed that the client had been deceived by perpetrators who acted in an organized manner.

The client wanted the perpetrators to receive heavy punishment and entrusted the matter to the Suncheon attorney specializing in criminal law.

The Suncheon attorney specializing in criminal law explains that unauthorized fund-raising is the act of raising funds from an unspecified number of people as a business, without obtaining the authorization or permission required under the relevant statutes or without completing the required registration or report.

The following are the acts that constitute unauthorized fund-raising.

▲ Receiving contributions under an agreement to pay, in the future, the full amount of the contributions or an amount exceeding it

▲ Receiving money under the name of deposits, installment savings, installments, or trust deposits, under an agreement to pay, in the future, the full amount of the principal or an amount exceeding it

▲ Issuing or selling bonds under an agreement to repurchase them, in the future, at or above the issue price or sale price

▲ Receiving money under the name of membership fees or similar, under an agreement to make up future economic losses with money or securities

Together with the Suncheon attorney specializing in criminal law, we will examine the criminal punishment that may be imposed for a violation of the Act on the Regulation of Unauthorized Fund-Raising.

What is the punishment for unauthorized fund-raising?

Act on the Regulation of Unauthorized Fund-Raising
Article 3 (Prohibition of Unauthorized Fund-Raising) No person shall engage in unauthorized fund-raising.

Article 4 (Prohibition of Labeling and Advertising of Unauthorized Fund-Raising) No person shall, for the purpose of engaging in unauthorized fund-raising, carry out labeling or advertising concerning that business (meaning labeling or advertising under the Act on Fair Labeling and Advertising) directed at an unspecified number of people.

Article 5 (Prohibition of the Use of a Trade Name Similar to a Financial Business) No person shall, for the purpose of engaging in unauthorized fund-raising, use within its trade name a designation that may be recognized as a financial business and that is prescribed by Presidential Decree.

Article 6 (Penalty Provisions) ① A person who, in violation of Article 3, engages in unauthorized fund-raising shall be punished by imprisonment for not more than 5 years or by a fine not exceeding 50 million won.
② A person who carries out labeling or advertising in violation of Article 4 shall be punished by imprisonment for not more than 2 years or by a fine not exceeding 20 million won.

Article 8 (Administrative Fines) ① An administrative fine not exceeding 50 million won shall be imposed on a person who, in violation of Article 5, uses a trade name similar to a financial business for the purpose of engaging in unauthorized fund-raising.
② The administrative fine under paragraph (1) shall be imposed and collected by the Financial Services Commission, as prescribed by Presidential Decree.

The Suncheon attorney specializing in criminal law emphasized that the complainant had prepared a contract with the defendants containing terms such as a guarantee of the principal.

The Suncheon attorney specializing in criminal law argued that the client's acquaintance had also been deceived by the defendants and proceeded with an investment, and that, having ultimately been unable to recover it, the resulting harm was severe.