"Company CEO Who Embezzled 1.4 Billion Won by Delivering 2 Million Masks and 100 Machines Sentenced to Prison in First Trial"

Fraud Charges Under the Special Act on Economic Crimes

[Image source=Yonhap News]

[Asia Economy Reporter Oh Gyumin] The head of a company was sentenced to prison for receiving money after signing a contract without providing proper goods to another company.

The Criminal Division 12 of the Seoul Western District Court (Chief Judge Andongbeom) sentenced company representative A (49) to three years in prison on the 7th for violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud).

A is accused of receiving 900 million won in advance in September 2020 from another company by saying, "If you pay 900 million won in advance, I will deliver 2 million masks tomorrow." It is known that A did not have the intention or ability to supply proper masks, as he could not handle the ordered quantity and supplied masks produced by an unlicensed manufacturer.

Additionally, in June 2020, A is accused of receiving 520 million won from a victim by stating, "We import machines from China and are scheduled to deliver 100 machines already ordered from another company, so there is no problem with machine supply," and "We will deliver first to companies that pay in advance, so if you pay 520 million won, we will install the machines." However, according to the prosecution, A's company's financial situation was poor at the time, and although orders were received from several companies, there was no evidence that machines were ordered from China or that machine supply was smooth.

In response to the prosecution's claims, A denied the charges, arguing that ▲ he had the intention and ability to supply the machines and no intention to embezzle the purchase money, and ▲ he also had no intention to embezzle the masks, and that the mask supplier was caught producing without approval from the Ministry of Food and Drug Safety, so he could not receive the supply.

The court stated, "Considering various pieces of evidence, it is judged that there was no intention or ability to supply the quantity," and added, "He even demanded advance payment by falsely stating that (machine installation, etc.) was possible, thus deceiving the victims by providing false information about important contract matters."

The court further explained the sentencing, saying, "The total amount of money embezzled by A through each crime amounts to 1.42 billion won," and "Nevertheless, the defendant consistently denied the crimes, claiming no intention to embezzle, showed no remorse, and has not been forgiven by the victims."

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