Second-degree 18 billion won jeonse fraud offender sentenced to 15 years in prison... Sentencing standards for fraud crimes to be strengthened

Gap investment method produces hundreds of victims, ‘18 billion won’ jeonse fraudster sentenced to 15 years in prison, ‘maximum sentence in court’
Sentencing Committee discusses establishment of new sentencing standards for lease fraud, insurance fraud, and voice phishing... August deliberation

Recently, while property crimes targeting the common people, such as voice phishing and real estate fraud, are on the rise, a man in his 50s who committed a lease fraud worth 18 billion won was sentenced to a heavy sentence in the second trial. Changes are expected in the sentencing standards for fraud crimes in the future.

On the 20th, the Busan District Court's Criminal Appeal Division 4-1 dismissed the defendant's appeal at the appellate sentencing hearing of a woman in her 50s who was indicted on fraud charges and upheld the original sentence of 15 years in prison.

The court dismissed the defendant’s appeal, saying, “The defendant appealed that the sentence in the first trial was heavy, but there were no special circumstances to change the sentence.”

The defendant is accused of receiving a total of 18 billion won in rental deposits from 229 victims while conducting a building rental business in the Busan area using the 'capital-free gap investment' method since 2020 and then failing to return them.

Considering the seriousness of the crime, the social harm it caused, and the pain of the victims who have not recovered, the first trial court sentenced him to 15 years in prison, the maximum sentence in court, higher than the 13 years requested by the prosecution.

Lawyer Soo-yeon Son of Daeryun Law Firm (Lihan), the victim's legal representative, said, "Nowadays, in economic crimes, especially fraud, even if the amount of damage is high, there is a vague belief that if it is a first-time offender, a suspended sentence will be given even if the damage is not recovered. Now, if the actual damage is not recovered, even a first-time offender can be considered for imprisonment."

He continued, “For victims, even if the punishment for fraud offenders is strengthened, a path to recovery from actual damage can be opened.”

The Supreme Court is also attracting attention as it announced that it will revise the sentencing standards for fraud crimes for the first time in 13 years and discuss strengthening punishment.

The Supreme Court Sentencing Committee (Sentencing Committee) announced plans to deliberate on revisions to the sentencing guidelines for fraud crimes at a plenary meeting last April. This is the first time there has been discussion on revisions to the sentencing standards for fraud crimes established and implemented in 2011.

Previously, it was pointed out that the punishment for fraudulent crimes targeting the common people, such as insurance fraud, voice phishing, coin/multi-level fraud, and real estate fraud, continues to increase, and that punishment for these should be strengthened.

In the case of existing fraud sentences, if the damage per victim exceeds 500 million won, the person is subject to aggravated punishment. Under the Special Police Act, a sentence of up to life imprisonment is possible when the profit from fraud is more than 5 billion won, but according to the Sentencing Commission's sentencing guidelines, the basic sentence is 5 to 8 years for crimes where the amount of damage is more than 5 billion won but less than 30 billion won.

In particular, in the case of insurance fraud, there were 6,209 old cases sentenced between 2018 and 2022, the largest number based on case name among crimes for which no sentencing standards have been set. However, the punishment is nothing more than a mild punishment, with a fine rate that is more than five times higher than for general fraud.

In addition, voice phishing is also a crime targeting ordinary people, and is carried out systematically and causes significant damage.

The Sentencing Commission explained, “As crimes such as real estate fraud, voice phishing, and insurance fraud increase, there is a high demand for stronger punishment for organized fraud. Since the sentencing standards for fraud crimes have not been revised and the recommended sentence range has been revised since their establishment and implementation in 2011, there is a need to reflect the patterns of social and economic changes and changes in public perception.”

The Sentencing Commission plans to focus on revising the recommended sentencing range for organized fraud rather than general fraud.

If the sentencing standards for fraud crimes are strengthened, it is expected that this will put a brake on the harsh punishments that have been handed out so far for crimes that harm ordinary people.

Meanwhile, the Sentencing Commission plans to deliberate and confirm the revised sentencing guidelines for fraud crimes on August 12. Afterwards, a public hearing will be held and a final decision on each sentencing standard will be made in March of next year.

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