Jeonse Fraud Gang 'Villa-ui Sin' Appeals First Trial Prison Sentence... Owning Over 3,400 Units

It has been reported that a group involved in a jeonse fraud scheme, known to own over 3,400 officetels and villas, has appealed the first-instance court ruling that sentenced them to prison.

According to the legal community on the 1st, three individuals including Choi submitted an appeal to the court on that day.

Previously, on the 25th of last month, Judge Jang Dubong of the Criminal Division 2 at the Ansan Branch of Suwon District Court sentenced Choi, who was indicted in custody on charges of fraud, to eight years in prison, and his accomplices Kwon and Park to six and five years in prison respectively. They were also referred to as the so-called "God of Villas."

The prosecution had requested the court to sentence Choi to seven years and the other two defendants to five years each, but Judge Jang handed down heavier sentences than the prosecution's demands, stating that it was "a very serious crime that shook the livelihoods of victims composed of working-class people and young adults starting out in society."

The victims consider it somewhat fortunate that the first-instance sentences were heavier than the prosecution's requests, but they argue that Choi and others should receive even harsher punishment through the appeal trial. It is understood that the victims submitted a petition to the prosecution requesting an appeal after the first-instance ruling.

Choi and others were indicted on charges of embezzling over 7 billion won from 31 people between April 2020 and February 2021 by signing so-called "empty jeonse" lease contracts, where the jeonse deposit amount for officetels or villas exceeded the actual sale price.

Empty jeonse refers to a type of lease where the combined amount of secured loans and jeonse deposits is higher than the actual transaction sale price, making it highly likely that the deposit cannot be returned on time.

It is known that Choi and others engaged in "zero-capital gap investment," acquiring ownership of houses without spending money by simultaneously conducting contracts to purchase houses with the jeonse deposits paid by tenants.

So far, damages amounting to about 60 billion won in jeonse deposits from approximately 300 victims have been confirmed. The police are continuing their investigation, including identifying additional fraud damages related to Choi and others, and one member of the group who has not yet been indicted is being investigated without detention.

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