Deals & Cases

Violation of the Act on Aggravated Punishment of Specific Economic Crimes (Fraud), etc.

Violation of the Act on Aggravated Punishment of Specific Economic Crimes (Fraud), etc.Imprisonment

Suncheon Law Firm | Firm Assists Ponzi Scheme Victim in Filing a Complaint, Resulting in a 10-Year Sentence for the Perpetrator

2024.12.04박동일

The client who requested help from the Suncheon law firm was a victim of a Ponzi scheme.

The Suncheon law firm provided representation in filing a complaint to recover the loss, and the perpetrator received a custodial sentence.

1. The Client Who Consulted the Suncheon Law Firm

The client who requested help from the Suncheon law firm was in a situation of having suffered a large loss from a Ponzi scheme.

A Ponzi scheme refers to a multi-level financial fraud method carried out by recruiting new investors while generating almost no actual profit, and then paying their investment funds as dividends (returns) to existing investors.

The person who recommended this investment to the client was a senior from high school.

Because the client knew that the perpetrator worked in a finance-related field, the client could not doubt the perpetrator's investment recommendation.

The perpetrator recommended the investment to the client, guaranteeing a monthly return of 10%, and actually returned that profit as a dividend the following month.

With this profit, the client came to fully trust the perpetrator and began investing increasingly larger amounts.

The victims deceived by the perpetrator's method numbered as many as 10, and the loss exceeded 2 billion won.

Determined to recover the loss from the fraud, the client decided to file a criminal complaint and requested help from the Suncheon law firm.

2. Suncheon Law Firm Provides Assistance for Filing a Criminal Complaint

The Suncheon law firm set about providing assistance for the client.

Suncheon Law Firm Argues Violation of the Act Regulating Unauthorized Fund-Raising

No one may engage, as a business, in the act of receiving contributions from an unspecified number of persons under an agreement to pay them, in the future, the full amount of the contributions or an amount exceeding it, without obtaining authorization or permission under the relevant statutes or without registration, reporting, and the like.

Nevertheless, without obtaining authorization or permission under the relevant statutes, the perpetrator promised the client and other victims to pay monthly interest on their investment funds and even to guarantee the principal, and received substantial amounts by transfer over a number of years.

The Suncheon law firm emphasized that, as the perpetrator engaged in 🔗unauthorized fund-raising without obtaining authorization, permission, or the like under the relevant statutes, the perpetrator had violated the Act on the Regulation of Unauthorized Fund-Raising.

Suncheon Law Firm Raises Concern Over Additional Victims

The Suncheon law firm emphasized that the offense in this case was a typical Ponzi scheme and that it was highly likely there were additional victims, and it called for severe punishment.

The Suncheon law firm argued that the offender's fraudulent conduct was highly malicious, and it called for severe punishment so that the loss suffered by the client and the other victims could be recovered as quickly as possible.

3. Result of the Suncheon Law Firm's Assistance: Offender Sentenced to 10 Years' Imprisonment

As a result of the Suncheon law firm's assistance, the offender was sentenced to 10 years' imprisonment.

The client explained, “I wanted the offender to receive severe punishment. I am glad I entrusted the representation of the complaint to the attorney at the Suncheon law firm.”

In the case of a Ponzi scheme, there is no genuine revenue model, and existing investors earn returns from the money of new investors. Because this structure amounts to nothing more than paying off earlier obligations with later funds, the amount of loss grows to an unmanageable level as time passes.

If you have suffered loss from a Ponzi scheme, it is recommended to pursue a 🔗crime of fraud complaint together with a civil action for damages.

Through the coordination of its Criminal Group and its General Litigation and Arbitration Group, Daeryun Law Firm handles matters from the criminal action through the civil action under a single engagement.

If you need legal assistance in a situation like the one above, please reach out to Daeryun Law Firm.

순천법무법인 | 폰지사기 피해 의뢰인 도와 고소 진행, 가해자 징역 10년 선고

This content is based on actual cases handled by Daeryun Law LLC and has been partially adapted. All copyrights belong to Daeryun Law LLC.
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