"Officetel Rental Deposit Fraud Ring That Embezzled 5.2 Billion Won Sent to Prosecution"

Division of Roles Among Brokers and Borrowed-Name Landlords: 49 Referred to Prosecution

Organized Fraud Targeted 22 Young Professionals and Students

A group responsible for a large-scale rental deposit scam, in which they set the rental deposit higher than the actual property value and immediately changed the landlord's name upon signing the contract to siphon off the deposit, has been referred to the prosecution after embezzling approximately 5.2 billion won.

The Seoul Metropolitan Police Agency's Major Crime Investigation Unit announced on April 10 that it had sent 48 individuals, including a property owner in his 50s, Mr. A, for prosecution without detention on charges of fraud and aiding a suspect's escape. A man in his 60s, Mr. B, who participated as a nominal landlord, was referred for prosecution in custody on fraud charges.

Police are arresting a man in his 60s, Mr. A, who rented out his name as a landlord at a cafe in the Seoul area on charges of fraud. Seoul Metropolitan Police Agency

According to the police, from December 2021 to July 2022, Mr. A and others allegedly set rental deposits above market value for 22 victims, including young adults just starting their careers and university students, and then diverted the funds by changing the landlord's name immediately after the contract was signed. Mr. B, the nominal landlord, was detained because of a prior record for similar offenses and unclear residence.

The group divided roles among two property owners who masterminded the scheme, four sales brokers, and four nominal landlords who lent their names in exchange for a fee. The brokers recruited tenants by encouraging lease contracts with deposits higher than the sales price and then connected them to the nominal landlords who would take over the ownership. Once the lease contract was concluded, they siphoned off the deposit by changing the landlord's name. Some licensed real estate agents and assistants also participated, earning 10 to 15 times the legal commission rate, with fees per transaction reaching up to tens of millions of won.

The investigation into Mr. A's group also uncovered additional crimes beyond the rental deposit scam. Some nominal landlords forged lease contracts as monthly rental agreements and obtained loans, embezzling an additional 130 million won.

A police official stated, "This case is an organized rental deposit fraud in which participants played divided roles and used credit delinquents without repayment ability as nominal landlords, shifting the risk onto the tenants. Similar offenses have been confirmed in other residences, such as villas in the Seoul metropolitan area."

This content was produced with the assistance of AI translation services.