Prosecutors Indict Leader of Real Estate Loan Fraud Ring for Embezzling 1.1 Billion Won

The prosecution has brought to trial the ringleader of a fraud organization that deceived lending companies by pretending that there were no tenants in real estate properties, embezzling over 1.1 billion won.

[Image source=Yonhap News]

On the 16th, the Criminal Division 4 of the Seoul Northern District Prosecutors' Office (Chief Prosecutor Lee Wan-hee) announced that the day before, they had indicted Mr. A (26), the ringleader of a no-capital gap investment real estate loan fraud organization, on charges including organizing and participating in a criminal organization, fraud, forgery and use of private documents, forgery and use of public documents, and violation of the Resident Registration Act, and detained him. “Gap investment” loans refer to illegal acts of forging documents necessary for loans to obtain loans.

Mr. A is accused of conspiring with counselor Mr. B, collectors Mr. C and Mr. D from June to December last year to forge real estate tenant registration details or re-registration reports, arbitrarily transferring tenants to other addresses to deceive lending companies into believing that there were no tenants in the real estate. Using this method, they embezzled a total of 1,120,600,000 won over 19 occasions.

Earlier, the prosecution had indicted Mr. B and Mr. C on charges of organizing a criminal organization and detained them on April 21, and, in cooperation with the police, arrested and detained the fugitive Mr. A.

The prosecution stated, "We closely cooperated with the police to investigate the full extent of the crimes, including conducting additional investigations on the real estate owners who obtained loans from lending companies through these organizations," and added, "We will do our best to maintain the prosecution so that the defendants receive severe sentences corresponding to their crimes."

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