Suwon Fraud Attorney | Defending Against an Actual Sentence for a Client Charged With Fraud Involving 50 Million Won

The client, who resides in Suwon, was introduced by an acquaintance to a business venture that was being run successfully overseas.

Drawn to the fact that it was a new business not yet introduced in Korea, the client decided to bring the acquaintance's business venture into the country and start the business directly.

However, starting a new business required initial capital, and the client asked for help from a victim with whom the client had long maintained a close relationship.

The client explained the high profitability of the business to the victim and received an investment of approximately 50 million won on the condition that the client would return 1.5 times the invested amount.

However, unforeseen local circumstances delayed the business, and the client was unable to return the promised investment to the victim on time.

The victim ultimately filed a criminal complaint against the client for fraud.

Fraud is a crime of obtaining property or pecuniary benefit by deceiving another person.

🔗The crime of fraud is committed only when there is an act of deception, so the act of deception must be proven.

The applicable penalties and sentencing are set out in the Criminal Act.

Under the Criminal Act, the crime of fraud is punishable by imprisonment for up to 10 years or a fine of up to 20 million won. However, if the amount of benefit is 500 million won or more, aggravated punishment applies under the Act on Aggravated Punishment of Specific Economic Crimes.

∙ If the amount of benefit is 500 million won or more but less than 5 billion won, imprisonment for a definite term of at least 3 years applies.
∙ If the amount of benefit is 5 billion won or more, life imprisonment or imprisonment for a definite term of at least 5 years applies.
∙ A fine equivalent to up to the amount of benefit may also be imposed concurrently.

There must be an act of deceiving the other party, the other party must fall into a mistaken belief as a result of that deception, financial harm must occur reflecting an intent to unlawfully acquire, and there must be intent or purpose.

🔗View precedents relating to the crime of fraud (click)

The victim claimed that the client deceived the victim and received 50 million won.

The client asked the victim for initial capital to carry on the overseas business in Korea, but this was not a deception of the victim by the client.

The client secured funds to run the business by using the client's entire assets as well as money from the client's family.

The attorney rebutted the claim, emphasizing that the client charged with fraud had also spent a great deal of money for the business and had no intent to deceive the victim and unlawfully obtain money.

The attorney argued that, although the client did not intentionally obtain the money unlawfully, the client had failed to provide the promised return to the victim and was deeply sorry for having brought about this situation.

The attorney emphasized that the client had genuinely tried to carry on the business in Korea and had no intent whatsoever to deceive.