Handing Money to a Fraudster Does Not Make You a Co-Conspirator in Fraud

Published 21 Oct.2026 15:53(KST)

A company CEO who received 1.5 billion won in a company account, withdrew it by check, and handed it to a fraudster has been acquitted in a final ruling. The court found that merely being involved in borrowing and transferring the money was not enough to establish a conspiracy to commit fraud.

The Seoul High Court's Criminal Division 7, presided over by Judge Gu Hoe-geun, upheld the first trial's acquittal of A in a trial on remand on September 30, 2026, and dismissed the prosecution's appeal (2026No1802). A was also acquitted of aiding and abetting fraud.

[Facts]

B owed A about 13 billion won. B believed he could repay the debt by acquiring and operating a company listed on the Korea Composite Stock Price Index (KOSPI).

In January 2022, B went with A to the chairman of the victim company and said, "If you lend me 1.5 billion won for the acquisition, I will repay it within a week." The victim company transferred the money to an account belonging to A's company, and A withdrew it by check and handed it to B.

[Lower Court Rulings]

The first trial acquitted A, finding insufficient evidence that A had conspired with B to commit the crime. The charge of aiding and abetting fraud was added on appeal, and the appellate court sentenced A to two years in prison.

[Supreme Court and Retrial on Remand Rulings]

The Supreme Court found A not guilty.

- Even after transferring the 1.5 billion won, A sent B more money, bringing the total amount handed over to 4.5 billion won. A may also have believed B's claim that he would repay the debt by acquiring a listed company.

- A had enough assets to lend B a substantial additional amount. Yet, in overturning the first trial's acquittal, the appellate court did not sufficiently verify A's ability to repay the money using objective evidence.

The court hearing the case on remand found insufficient evidence that A knew of B's fraud and helped him, and acquitted A of both fraud and aiding and abetting fraud. The ruling became final.

[Counsel's Comments]

A was represented by lawyers Park Boyoung (16th class of the Judicial Research and Training Institute), Lee Dongguk (28th class), and Nam Eunji (45th class) of Dongin Law Firm.

Attorney Lee Dongguk said, "We emphasized that A had no intention of taking the money and that there was no basis to conclude that A jointly carried out the crime with B." He added, "At the retrial on remand, we also argued that there was insufficient evidence that A helped B while knowing that B's conduct constituted fraud, and A was acquitted of aiding and abetting fraud as well."