'No-Capital Gap Investment' Suwon Jeonse Fraud Family First Trial on the 22nd of This Month

Suspected family of 'Suwon Jeonse Fraud' suspect with bowed heads (Photo by Yonhap News)

The first trial of a family arrested and indicted for a lease deposit fraud worth hundreds of billions of won through capital-free gap investment in the Suwon area of Gyeonggi Province will be held on the 22nd of this month.

According to the legal community on the 11th, the Suwon District Court Criminal Division 11 single judge court designated the first trial date at 2 p.m. on the 22nd for Jeong Mo (60), the president of a real estate rental company, his wife Kim Mo (54), and their son (30), who were indicted on charges of fraud, violation of the Appraisal Act, and violation of the Real Name Real Estate Act.

The Jeong family is accused of acquiring about 800 housing units in the Suwon area of Gyeonggi Province from January 2021 to September 2023 using the names of family members and the rental company corporation, and then embezzling 22.5 billion won in lease deposits from 214 tenants.

Jeong was confirmed to have continued rental contracts in a 'rolling over' manner without a concrete fund management plan, despite being in a debt-overhang state with loans exceeding 70 billion won. Unlike his parents, Jeong's son was investigated without detention from the police stage but was eventually detained by the prosecution in December last year.

The prosecution revealed that Jeong's son, an appraiser, actively participated in the crime by working as the head of the rental company from March 2023, appraising rental buildings at prices higher than the market value at his father's request.

In particular, it was investigated that Jeong used 1.3 billion won of the criminal proceeds to purchase accounts, characters, and items in the game "Lineage." The Jeong family explained to some tenants who visited the scene during the police raid on the corporate office last October that they were "planning compensation."

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