Crime of Fraud Attorney | Assisting a Client Charged by a Business Partner to Obtain a Non-Prosecution Decision

2025.11.11박동일

This is the account of a client who turned to a crime of fraud attorney. With the attorney's assistance, the client was able to receive a non-prosecution decision for insufficient evidence.

1. The Client Who Turned to a Crime of Fraud Attorney

This is a case in which a client who requested help from a crime of fraud attorney was assisted.

The client, who runs a small business, was suddenly charged with the crime of fraud by a business partner.

The business partner filed a fraud complaint, claiming that the client had used business funds for personal purposes.

The client requested help from a crime of fraud attorney regarding the unjust fraud allegations.

What Is the Crime of Fraud?

Fraud is a crime of deceiving another person to receive property or to obtain a pecuniary benefit.

🔗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 not more than ten years or a fine of not more than 20 million won, but if the amount gained is 500 million won or more, aggravated punishment is imposed under the Act on Aggravated Punishment of Specific Economic Crimes.

∙ If the amount gained is 500 million won or more but less than 5 billion won, imprisonment for a definite term of three years or more
∙ If the amount gained is 5 billion won or more, life imprisonment or imprisonment for a definite term of five years or more
∙ A fine of up to the amount gained may also be imposed concurrently.

There must be an act of deceiving the other party, the other party must be led into a mistake by that act of deception, financial harm must occur so that an intent to unlawfully obtain gain is shown, and there must be intent or deliberation.

Precedent on the Establishment of the Crime of Fraud

Whether the crime of fraud is established must be judged as of the time of the act.

In a loan-for-consumption transaction, if the borrower had the intention and ability to repay at the time of borrowing the money, then even if the borrower later fails to repay, this amounts merely to a civil default and does not constitute the criminal offense of fraud. Therefore, if the lender was aware of the borrower's credit status and anticipated, or could have sufficiently anticipated, the risk of future delay in repayment or inability to repay, the mere fact that the borrower failed to repay properly cannot be taken to conclude that the borrower deceived the lender as to repayment ability or that the borrower had the intent to defraud. (See Supreme Court Decision 2012Do1456, April 28, 2016, and others.)

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2. Crime of Fraud Attorney, Assistance to Prove the Client's Innocence

The crime of fraud attorney set out to provide a defense to prove the client's innocence.

Crime of Fraud Attorney, Disclosure of How the Down Payment Was Used

The crime of fraud attorney gathered clear evidence, including the relevant transaction records, records of how the funds were used, contracts, and messenger conversations, in order to prove the client's innocence.
The attorney submitted bank transaction records, receipts, contracts, and the like, arguing that the down payment in the case had all been used for an ongoing project.

Crime of Fraud Attorney, Argument That the Crime of Fraud Is Not Established

For the crime of fraud to be established, the constituent elements of an "act of deception" and "financial harm" must be clearly proven.

However, in this case, the matter was based on mere conjecture, and it was not proven that the client had deliberately engaged in an act of deception.

The attorney handling the case pointed out that there was a lack of specific and objective evidence in the matter.

Examining the requirements and sentencing standards for establishing a crime of fraud
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3. Result of the Crime of Fraud Attorney's Assistance, a Non-Prosecution Decision for No Evidence

As a result of the crime of fraud attorney's assistance, the client was able to receive a non-prosecution decision for no evidence.

According to the Investigation Division of the Gyeonggi Nambu Provincial Police Agency, the number of fraud offenses over the most recent six years as of 2024 has been on the rise: 40,343 in 2017, 47,352 in 2018, 55,799 in 2019, 65,637 in 2020, 55,860 in 2021, and 58,302 in 2022.

The share of fraud among all crimes during this period also increased significantly, from 12.8% in 2017 to 21.1% in 2022.

The police have designated ten major malicious frauds for intensive, sector-by-sector crackdowns: ▲jeonse fraud, ▲telecommunications-based financial fraud, ▲insurance fraud, ▲cyber fraud, ▲other organized fraud such as investment, sales, and transaction fraud, ▲large-loss fraud, ▲virtual asset fraud, ▲investment chat-room fraud, ▲romance fraud, and ▲smishing such as bait text messages.

For this reason, if you become involved in the crime of fraud, it can be helpful to respond quickly from the early stage of the case with the help of an attorney.

Daeryun Law Firm has attorneys who systematically analyze the causes and provide a defense strategy tailored to the client's case.

If you are looking for a crime of fraud attorney, you may obtain an 🔗attorney referral at Daeryun Law Firm.

This content is based on actual cases handled by Daeryun Law LLC and has been partially adapted. All copyrights belong to Daeryun Law LLC.
Unauthorized reproduction, copying or distribution may result in legal action under applicable laws.