7 People on Trial for Embezzling 2.4 Billion Won in Jeonse Deposits through 'Mujabon Gap Investment'

A group involved in a so-called 'zero-capital gap investment' scheme, where villas were purchased using tenants' deposit money to pay the housing purchase price and then leased out under jeonse contracts, defrauded a total of 2.4 billion KRW in jeonse deposits and has been brought to trial.

On the 20th, the Criminal Division 1 of the Seoul Western District Prosecutors' Office (Chief Prosecutor Park Seong-min) announced that on the 17th, they indicted two representatives and five employees of a real estate consulting company on charges of fraud and violation of the Licensed Real Estate Agents Act. The two company representatives were indicted while in custody.

The two representatives, who were indicted in custody, are accused of inflating villa sale prices from September 2021 to August last year, receiving jeonse deposits from tenants at amounts higher than the actual sale prices, and embezzling funds through rebates with villa buyers and others. It was also investigated that they brokered sales without holding real estate agent licenses. There are 10 victims, and the total amount defrauded is 2.4 billion KRW.

The five employees, who were indicted without detention, are accused of recruiting buyers under the representatives' instructions and sharing the embezzled funds. It is known that the two representatives and five employees used the embezzled money for their living expenses and entertainment costs.

A prosecutor stated, "We will continue to conduct strict investigations into jeonse fraud cases that disrupt the real estate market and cause serious harm to ordinary citizens, ensuring that punishments commensurate with the crimes are enforced."

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