60s Sentenced to 4 Years in Prison for Embezzling 3.8 Billion Won Using a Figurehead CEO

[Asia Economy Reporter Yoo Byung-don] A man in his 60s who embezzled several billion won of company funds by appointing a figurehead president was sentenced to prison.

The Seoul Southern District Court Criminal Division 11 (Presiding Judge Sung Bo-gi) announced on the 17th that it sentenced Jeon Mo (66), who was indicted on charges including embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, to four years in prison.

Jeon, the actual operator of a wedding hall management company established in 2010, was indicted on charges of embezzling about 3.8 billion won of company funds multiple times by listing his acquaintance A as the company representative.

It was investigated that Jeon used 2.77 billion won out of 4.6 billion won borrowed under the company's name to repay his own debts.

Jeon claimed that he was not involved in the loan decision, but the court stated, "The defendant is the actual operator of the company," and "He had A, who was merely a nominal lender, visit the bank to sign the loan documents."

In fact, Jeon directly managed the company seal and prevented others from using it without his permission.

When the wedding hall's business situation worsened and investors demanded the return of their investments, Jeon embezzled 360 million won of lease deposit entrusted by tenant companies and returned it only to some investors around him.

He also embezzled 660 million won as his share of the investment funds.

The court ruled, "The total investment amount from the investors in this case is about 12.1 billion won, but the total amount they ultimately received as settlement money is only about 5.3 billion won," and "The damage caused by the defendant to the company and investors is by no means small."

This content was produced with the assistance of AI translation services.