50s Sentenced to Prison for Embezzling Real Estate Investment Funds Promising "High Returns"

A man in his 50s who embezzled a huge amount of real estate investment funds by luring with high returns was sentenced to prison.

According to the legal community on the 25th, the 11th Criminal Division of the Gwangju District Court (presiding judge Go Sang-yeong) sentenced A (58), who was indicted on charges of fraud under the Special Act, to 1 year and 6 months in prison.

B (57), a teacher identified as an accomplice, was acquitted.

From 2013 to 2016, A was tried for receiving about 1.2 billion won from three real estate investors and using it to repay his own debts.

A operated a real estate development company and was introduced to real estate investors through B, a friend.

He deceived them by promising to resell through so-called short-term trades (such as unregistered resale) to generate profits and pay principal and interest at a monthly rate of 3 to 10%.

However, the investment funds were used not for purchasing real estate but to repay his own debts. He used a so-called 'Ponzi scheme' method, borrowing money from multiple people to repay others.

A returned some profits to the three victims but ultimately caused losses amounting to several hundred million won.

Between 2010 and 2016, he paid B, who invested in him, about 10% monthly returns (totaling about 200 million won).

The court said, "The guilt is very heavy as he defrauded victims of large sums under the pretext of high returns," and added, "Despite having a history of multiple punishments for similar crimes, he committed the crime again."

However, the court explained, "Considering that he paid some profits to the victims and comprehensively judging other sentencing factors such as the circumstances and motives of the crime, the means, and the situation after the crime."

Regarding B, the court ruled, "Based solely on the evidence submitted by the prosecution, it is difficult to conclude beyond a reasonable doubt that B conspired with A to defraud the victims."

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