Sentences Confirmed for Couple Involved in Dongtan Rental Fraud

6 hours ago
Sentences Confirmed for Couple Involved in Dongtan Rental Fraud

The Supreme Court of South Korea has upheld prison sentences for a couple convicted of defrauding tenants out of 17 billion KRW in rental deposits in the Dongtan area. On May 15, the court's third division, led by Justice Lee Suk-yeon, confirmed the original sentences of 7 years and 3 years and 6 months for the couple, who were found guilty of fraud. The court stated that there were no errors in the lower court's judgment regarding the establishment of fraud and the principles of joint criminal liability.

From July 2020 to January 2023, the couple, identified as A and B, acquired and rented out 268 officetels using a 'no-capital gap investment' strategy. They were assisted by another couple, C and D, who acted as real estate agents and facilitated the rapid purchase of properties by introducing rental listings with existing deposits. Despite knowing they had no intention or ability to return the deposits, they misrepresented their financial situation and even borrowed money to appear solvent.

In the first trial, A and B received sentences of 12 years and 6 years, respectively, while C and D were sentenced to 12 years and 7 years. However, in the second trial, the sentences were reduced to 7 years and 3 years and 6 months for A and B, and 7 years and 4 years for C and D, taking into account the overlapping charges and efforts made to recover some losses by selling off certain properties.

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