50-Year-Old Convicted of 40 Billion Won Fraud Over 18 Years... 13-Year Prison Sentence Confirmed

Illegal Gift and Stock Sites Embezzle 43 Billion Won... Also Operate Gambling Sites

[Asia Economy Reporter Heo Kyung-jun] A man in his 50s who operated illegal futures and stock trading sites while staying abroad and swindled 43 billion KRW from domestic investors has been sentenced to 13 years in prison.

The Supreme Court's 1st Division (Presiding Justice Oh Kyung-mi) announced on the 7th that it upheld the 13-year prison sentence handed down by the lower court in the final appeal trial of Lee (57), who was charged with 14 offenses including organizing a criminal group, operating gambling spaces, violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud and concealment of assets abroad), and embezzlement. The order to confiscate criminal proceeds amounting to about 16.9 billion KRW, as determined by the lower court, was also maintained.

Lee fled to Vietnam after pocketing about 35 million KRW through a free mobile phone fortune-telling scam in 2002, then opened illegal gambling sites in Vietnam and Thailand, earning over 2 billion KRW. From May 2012 to October 2017, he developed programs and operated unauthorized futures and stock trading sites in Bangkok, Thailand.

Lee established a company consisting of 4 to 5 teams, including stock management, and operated 13 futures and stock trading sites, swindling a total of 43 billion KRW from 231 members.

He also transferred criminal proceeds to Korean bank accounts under foreign names and then moved about 16.9 billion KRW overseas to Thai accounts using a hawala-like remittance method.

The first trial found Lee guilty of most charges and sentenced him to 15 years in prison but acquitted him of organizing a criminal group, reasoning that employees of Lee’s company were free to quit their jobs, which differs from the typical nature of a criminal organization. Additionally, the first trial did not order confiscation or seizure of criminal proceeds, stating that victims could take legal actions such as claiming damages.

The appellate court upheld most of the first trial’s rulings but made a different judgment regarding the confiscation of criminal proceeds. The second trial ordered the confiscation of about 16.9 billion KRW, criticizing the first trial for not confiscating all the assets despite recognizing the crime of concealment of assets abroad. Considering that Lee settled investment funds during the crime period and victims received partial refunds or settlements under deposit return or settlement money, the sentence was reduced to 13 years.

The Supreme Court also agreed with the appellate court’s judgment.

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