Real estate representative who committed 15.9 billion won in lease fraud by abusing the LH system, admits to charges

Real estate representative who committed 15.9 billion won in lease fraud by abusing the LH system, admits to charges

The representative of a real estate corporation that stole 15.9 billion won worth of money by abusing Korea Land and Housing Corporation’s (LH) rental support system admitted to some of the charges in his first trial. The representative is also being investigated by the police on charges of committing a lease fraud that affected more than 2,000 households.

On the 7th, the 11th Criminal Division of the Daejeon District Court held the first trial preparation date for Mr. Kim (49), the CEO of a real estate corporation in the Daejeon area, who was indicted on charges of fraud under the Aggravated Punishment for Specific Economic Crimes Act. Mr. Kim said, “I found out late about the non-payment of the senior deposit,” and added, “I admit to the crime, but some of the alleged facts were not intentional.”

Since March 2020, in the process of signing a lease contract with the Korea Land and Housing Corporation (LH) for a multi-family house under his name, Mr. Kim deceived the Corporation by falsely stating the senior deposit and received 15.9 billion won in rental deposit from the Corporation. was indicted on charges

When LH searches for houses for beneficiaries to move into, it first signs a lease contract with the homeowner and then abuses the ‘rental housing support system’ to re-rent it to those eligible to move in.

Even though a contract with LH cannot be made if the total of the mortgage amount and the senior lease deposit exceeds 90%, the company decided to swindle the lease deposit by falsely stating the senior deposit, and constructed a multi-family house on credit and then used the completed building as collateral. 2I received a loan from a financial institution.

Subsequently, it was investigated that he committed the so-called ‘turnaround’ crime by paying the loan interest with the rental deposit received from the construction company, but when it became difficult to obtain additional loans, he returned the rental deposit with the existing tenant’s deposit.

The prosecution said, “By abusing the system operated by LH, we obtained loans from secondary financial institutions using the buildings as collateral, repaid construction costs, and paid interest with tenant deposits to own hundreds of multi-family houses across the country.” “He deceived LH for several years and embezzled an amount worth 15.948 billion won in the name of rental subsidies on a total of 155 occasions,” the indictment said.

In 2021, the brokerage office was rented 79 times, including by paying 1 million won per month to another licensed real estate agent, renting a brokerage office registration certificate, and using the name of a licensed real estate agent.

In addition to the fraud case against LH, Mr. Kim is also being investigated by the police on suspicion of running a multi-family housing rental fraud targeting tenants.

According to the Daejeon Police Agency, it is estimated that at least 2,000 households have been affected by the lease fraud related to Mr. Kim, and the Daejeon Charter Fraud Victims Countermeasures Committee estimates that there will be 3,000 affected households and the amount of damage will be at least 300 billion won.

It is known that Mr. Kim owns more than 200 buildings in the name of himself, his younger brother, his girlfriend, and a corporation.

At the hearing held on this day, about 30 tenants from the damage committee attended and listened.

Mr. Kim’s lawyer said, “We are working to recover the damages suffered by the victims through the sale of real estate. When he said, “Please watch over the anniversary as much as possible (I will do my best),” the victims either burst into laughter or sighed in astonishment.

Park Sang-yeon, vice-chairman of the countermeasures committee, expressed his frustration by saying, “All of Mr. Kim’s buildings and land are fully mortgaged, so he does not have the ability to repay the victims’ deposits after first repaying them to financial institutions,” adding, “This is nonsense.” The next trial will be held on February 5th next year.

Daejeon = Reporter Kang Eun-seon [email protected]

[ⓒ 세계일보 &, 무단전재 및 재배포 금지]


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