'Hundreds of Billions Real Estate Fraud' Operator and Regional Nonghyup Executive Receive Reduced Sentences in Second Trial

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[Asia Economy Honam Reporting Headquarters Reporter Park Jin-hyung] A businessman who committed real estate fraud worth hundreds of billions of won and former regional Nonghyup executives who participated in the crime through improper loans received reduced sentences in the appellate trial.

According to the legal community on the 9th, the Gwangju High Court 2-2 Criminal Division (Presiding Judge Seong Chung-yong, Wi Gwang-ha, Park Jeong-hoon) overturned the original sentence of 9 years imprisonment and a fine of 300 million won for A (50), who was indicted for violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud), and sentenced him to 8 years imprisonment and a fine of 300 million won.

B (47), a former executive of a regional Nonghyup in Jeonnam who helped A and others commit the crime through fraudulent loans, had his sentence reduced from 5 years to 4 years imprisonment. C (56), an executive of a regional Nonghyup in Gwangju, had his sentence reduced from 5 years imprisonment and a fine of 55 million won to 4 years imprisonment and a fine of 36 million won. D (54), A’s younger brother, was sentenced to 4 years and 6 months imprisonment and a fine of 100 million won, down from 5 years imprisonment and a fine of 100 million won.

In addition, appeals from five others who were involved in the fraud by lending their names or enticing people around them and who received prison sentences or suspended sentences in the first trial were dismissed.

The court stated the reason for the reduced sentences was "considering comprehensively that some of the prosecutor’s charges were not recognized and that some of the damages were recovered."

A, D, and others were tried on charges of fraudulently obtaining a total of 15.5 billion won through 32 improper loans from two unit Nonghyups in Hwasun, Jeonnam, and Nam-gu, Gwangju, where B and C worked, from January 2014 to May 2019.

A was registered as ineligible for loans since the late 2000s and continued his lifestyle by purchasing real estate under the names of family or acquaintances and obtaining loans to invest elsewhere.

However, when it became difficult to pay interest during this process, with the help of D and others, they transferred the land titles to ordinary victims, inflated the appraised value, obtained loans from B and C, and embezzled the money.

In fact, the land was purchased for 60 million won, but they forged the sales contract to inflate it to 200 million won and obtained about 80% of the inflated amount as loans from B and C.

In particular, some forged seals under victims’ names without consent or carried around resident registration cards to use in the crime.

A and others operated all crimes in a multi-level, organized manner.

They invested the embezzled money elsewhere, but when no profits were generated, they repeatedly committed crimes for years by enticing new victims to repay loan interest or partially repay loans.

When circumstances were difficult, they issued numerous IOUs to borrow money again or to discourage reporting to investigative authorities.

D was deeply involved in and assisted his older brother A’s crimes, and B and C conspired with A and others to obtain and embezzle loans of 8 billion won and 7.3 billion won, respectively.

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