A South Korean court sentenced a man in his twenties to prison for recruiting and supplying bank accounts to an investment fraud organization, which defrauded 13 victims of approximately 150 million won ($110,000).
Judge Huh Sung-min of the Busan District Court's 10th Criminal Division sentenced the defendant, identified as Mr. A, to two years and six months in prison on charges including violations of the Electronic Financial Transactions Act and aiding illegal deposit-taking activities, according to legal sources on Thursday.
A co-defendant, Mr. B, who provided his account and helped Mr. A evade arrest, received a suspended sentence of one year and two months with two years of probation and 160 hours of community service.
Mr. A allegedly agreed to receive 2.5 million won per account from members of a financial investment fraud ring and supplied five bank accounts to the organization over approximately five months starting in September 2024, including one from Mr. B.
Investigators found that Mr. A secured the accounts by offering account holders 1 million won per month in exchange for access to their banking applications and passwords.
The fraud organization used the accounts to collect funds from victims recruited through false advertisements on the internet and social media platforms. The group allegedly told victims they could earn risk-free returns through gold investments and directed them to transfer money to accounts under the organization's control.
The fraudsters also directed victims to fake websites displaying fabricated screens showing investment gains and extracted additional funds by claiming more money was needed for withdrawals, according to investigators.
Mr. B provided his account after Mr. A promised him 1 million won. He later visited Mr. A's arrested accomplice in detention and used his mobile phone's speakerphone function to facilitate communication. When the transparent glass partition in the visitation room made conversation difficult, Mr. B relayed the phone conversation to Mr. A, investigators found. Mr. B also provided a villa in Seoul's Yangcheon District as a hideout for Mr. A.
"The defendants recruited and provided accounts used in investment fraud, facilitating the crimes," the court said. "Their culpability is not light."
The court added that it considered in sentencing that the defendants' actions constituted aiding rather than directly executing the fraud.