Gap Investment Empty House Jeonse Fraud, Establishment of Fraud Charges
Case Overview
- Client Information
- Individual / Victim
- Case Details
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At the time of signing the lease agreement, when the client inquired about obtaining a security deposit insurance policy, the landlord informed them that the property exceeded the rental rate limit, making it ineligible for such insurance. Noticing the client’s anxiety, the landlord couple reassured them that since they operated a substantial real estate business, there would be no issues with the return of the deposit.
Before the lease term expired, the client notified the landlord of their intent to terminate the contract early. However, the landlords proposed to extend the lease and offered to cover the interest on the security loan. The client accepted this proposal and extended the contract, but soon after, the landlord couple became unreachable.
Decent's Strategy
Results & Significance
The landlord, who engaged in rental business through "no capital gap investments" while leasing properties with little to no actual asset value, was ultimately found guilty of fraud.
This was a result of operating properties classified as "empty houses" in a circular manner and failing to return the security deposits to tenants.
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