[Exclusive] '14 Billion Won Corporate Jeonse Fraud'... Additional Arrest of Real Estate Consulting Firm CEO

by Choi Taewon

Published 20 Apr.2023 14:15(KST)

Updated 21 Apr.2023 09:05(KST)

Two Arrested for 14 Billion Won Jeonse Fraud... Additional Accomplices Under Investigation

The police investigating a corporate-style jeonse fraud worth 14 billion won that took place in the Seoul metropolitan area, including Seoul and Gyeonggi Province, have confirmed the arrest of an additional accomplice.

[Image source=Yonhap News]

According to a comprehensive report by Asia Economy on the 20th, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency has arrested Jeong Mo, a man in his 30s and the CEO of a real estate consulting firm, on charges of fraud and violation of the Real Name Real Estate Act, and is currently investigating. The Seoul Central District Court conducted a pre-arrest interrogation of Jeong, who had a warrant requested the previous day, and issued an arrest warrant citing concerns over evidence destruction and flight risk.

According to the police, Jeong is said to be a key figure involved in the 14 billion won jeonse fraud that occurred throughout Seoul and the areas of Gyeonggi and Incheon.

The previously arrested main suspect, Choi Mo, and Jeong are accused of embezzling approximately 14 billion won in deposits from 67 tenants between 2019 and 2022 in areas including Gangdong, Yangcheon, Guro, Yeongdeungpo, Gangbuk, Gangseo, and Geumcheon districts in Seoul; Bucheon, Gimpo, and Goyang in Gyeonggi Province; and Incheon. Choi is known to have carried out fraudulent activities mainly involving multi-family housing.

Jeong is reported to have played the role of recruiting tenants while promoting his company as a real estate consulting firm. The police believe that with the involvement of a real estate consulting corporation in this 14 billion won jeonse fraud, it is highly likely to have been a corporate-organized scam. It is also reported that Jeong did not hold a licensed real estate agent certificate.

Meanwhile, the police are conducting investigations after identifying additional accomplices beyond these individuals.

A police official stated, "We are continuing the investigation related to the 14 billion won jeonse fraud," and added, "We plan to thoroughly investigate the additional accomplices as well."