'No-Capital Gap Investment' 76 Billion KRW Jeonse Fraud Gang Arrested and Indicted

Two individuals who carried out a 70 billion won-level jeonse fraud using the 'no-capital gap investment' method have been brought to trial.

Seoul Northern District Prosecutors' Office.

The Criminal Division 4 of the Seoul Northern District Prosecutors' Office (Chief Prosecutor Song Jeong-eun) announced on the 20th that landlord Mr. A and investment broker Mr. B were each arrested and indicted on charges of embezzling 76 billion won in jeonse deposits from 263 tenants by producing so-called 'empty-can jeonse,' where the jeonse deposit exceeds the real estate sale price.

According to the prosecution, from June 2021 to July last year, they purchased over 310 housing units such as villas around Seoul using the no-capital gap investment method and are accused of distributing about 15% of the deposits as rebates. It was found that the remaining deposits were used for tax payments and pre-sale payments.

A prosecution official stated, "It was revealed that they deceived tenants by receiving deposits despite the structure being unable to return the deposits from the beginning," adding, "We will do our best to ensure that the defendants receive appropriate and strict punishment."

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