'15.5 Billion' Real Estate Fraud Group Now Targets Used Car Loan Scams... Victims' Losses Snowball

[Asia Economy Honam Reporting Headquarters Reporter Park Jin-hyung] Three individuals who were either imprisoned or released on probation after being convicted of a 15.5 billion KRW real estate loan fraud involving Nonghyup have now been indicted for used car loan fraud.

According to the legal community on the 17th, the Gwangju District Court Criminal Division 4 (Presiding Judge Park Sang-hyun) held a trial session yesterday for businessman A (50), former executive B (48) of a regional Nonghyup in Jeonnam, and apartment sales agent C (55, female), who were indicted on charges including fraud and embezzlement. The defendants, who are acquaintances, conspired over a long period to commit the crimes.

A and B, who were recognized for loan fraud through Nonghyup last year and are currently incarcerated, appeared in court again, while C, who had received a suspended sentence for the same charges, is also facing legal judgment once more.

They were indicted on charges of embezzling several hundred million KRW by purchasing used cars under others' names to obtain loans from the first half to the second half of 2019. They are also accused of coercing victims to withdraw their complaints. However, specific details of the charges have not yet been confirmed.

Previously, prosecutors reportedly sought prison sentences of 5 to 6 years for each of them, but as additional criminal charges have been confirmed, the trial proceedings have been extended.

During the trial, A and B admitted to most of the additional charges.

On the other hand, C denied the charges, stating, "I only proposed loans to the victims under A's instructions."

C had previously made the same claim in the trial for the 15.5 billion KRW real estate fraud, for which she received a suspended sentence, asserting that she was only following A's instructions.

The 15.5 billion KRW real estate fraud involved their conspiracy to fraudulently obtain a total of 15.5 billion KRW in improper loans from two unit Nonghyup branches in Hwasun, Jeonnam, and Nam-gu, Gwangju, through 32 transactions from January 2014 to May 2019. Most of the victims are known to be young adults in their 20s and 30s just starting their careers.

A has been 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, he, with the help of other defendants including C, transferred the land titles to ordinary victims, inflated the appraised value, and had B obtain loans, thereby embezzling money.

They used a method where land purchased for 60 million KRW was inflated to 200 million KRW by forging sales contracts, and then about 80% of that amount was loaned by B and others.

They operated all crimes in a multi-level, organized manner. A notary public and a licensed real estate agent, who were acquaintances, were also partially involved in the crimes.

On June 11 last year, the first trial sentenced A to 9 years in prison and a 300 million KRW fine, B to 5 years in prison, and C to 1 year and 6 months in prison with a 3-year probation, citing her minor involvement.

On December 7 of the same year, the appellate court reduced A's sentence to 8 years in prison and a 300 million KRW fine, and B's to 4 years in prison, acknowledging partial restitution of damages, while dismissing C's appeal.

Their next trial is scheduled for April 27 at 2 p.m., during which witness examinations for A and three others will be conducted.

Meanwhile, reports of complaints and damages related to their fraudulent activities continue to be received.

Some victims accuse C, who received a suspended sentence, not as a minor participant but as a main culprit, expressing severe mental and material damages. The scale of damages is estimated to reach several hundred million KRW in addition to the 15.5 billion KRW real estate fraud.

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