Developer gets 15 years in prison for rental fraud in appellate court

A real estate developer, already serving a seven-year sentence for a previous conviction related to fraudulent rental deals, has received a 15-year prison sentence in an appellate court for additional fraud charges. The Seoul High Court's Incheon branch upheld the original sentence for the 64-year-old developer, identified as Nam, who was charged with fraud and embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes.

The appellate court found Nam's actions, including submitting forged documents to the court, highly blameworthy. He also had a prior record of a suspended sentence for violating the Electronic Commerce Law. However, the court acquitted him of charges related to organizing a criminal group and violating real estate brokerage laws. The first trial had also ruled not guilty on these charges, stating that the organization Nam created for his rental business in 2013-2014 was not established with the purpose of committing crimes.

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The defendant's blameworthiness is high, including forging documents and submitting them to the court.

Nam was indicted for defrauding 372 tenants of approximately 30.5 billion won ($23 million) in rental deposits in the Michuhol district of Incheon between March 2021 and 2022. While authorities initially estimated the total damage at 58.9 billion won, 14.8 billion won was part of a separate case for which he received a seven-year sentence. Another 8.3 billion won is currently under trial in a third indictment. He also faces charges of embezzling 11.7 billion won, including 4 billion won in construction costs for his company, to secure a development site in Donghae.

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There is insufficient evidence to conclude that the organization was newly created for the purpose of committing the crime when Nam decided to commit rental fraud.