Defense in an embezzlement case under the Act on the Aggravated Punishment of Specific Economic Crimes involving a construction company's slush fund

The CEO and the head of finance of a construction company were indicted on charges of creating and using off-the-books funds through fictitious labor costs, transaction payments and other means. Attorney Jaehoon Lee took part in the criminal defense of both defendants.

While the creation and use of the off-the-books funds were admitted, the issues were how sentencing should reflect the circumstances under which the funds were created at the request of the prime contractor, how the funds were actually used, each defendant's degree of participation, and their efforts to compensate for the losses.

Attorney Lee analyzed the record of how the off-the-books funds were created and used and the materials from related criminal cases, and compared the transaction structure between the prime contractor and the subcontractor and the criminal dispositions of the other people involved.

On that basis, he argued for leniency in sentencing, setting out that the funds were used in connection with the company's business, the subordinate position and limited participation of the head of finance, and the compensation for losses and the statements that the victims did not seek punishment.

On appeal, he further argued for fairness in punishment relative to employees of other subcontractors involved in similar conduct.