Lawyer's 2-year sentence finalized for aiding 1 trillion won pyramid scheme

A lawyer's two-year prison sentence for aiding a massive pyramid scheme has been upheld by South Korea's Supreme Court. The lawyer, identified as A, was found to have assisted Kim Sung-hoon, the former CEO of IDS Holdings, in defrauding investors of approximately 1.096 trillion won (about $730 million).

Kim, often called the "second Jo Hee-pal," operated the scheme from 2011 to 2016, promising monthly returns of 1-10% on foreign exchange margin trading. He defrauded over 12,000 individuals before his 15-year sentence was finalized in 2017.

Lawyer A served as both Kim's criminal defense attorney and a legal advisor for IDS Holdings. Between April and August 2016, he gave five lectures to investors, presenting the business as legally sound despite knowing about ongoing legal issues and the practice of "rolling over" investments to pay earlier investors. Both the lower courts and the Supreme Court found that A was aware of the scheme's lack of profitability and its reliance on new investments to repay existing ones.

Despite A's appeal, the Supreme Court dismissed his claims, affirming the lower courts' rulings. The final sentence confirms the legal consequences for those who facilitate large-scale financial fraud in South Korea.

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The court ruled that the lawyer aided the criminal act, knowing that the business was not profitable and that investments were being rolled over to make payments.