Partial acquittal at first instance in a breach of trust, fraud and embezzlement case involving large-scale financial transactions

Bank officers and employees, among others, were indicted for breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, fraud, embezzlement and forgery of private documents, among other charges, in connection with payment guarantees and loan receivable transfer agreements made while the bank was handling distressed financial transactions.

Attorney Jaehoon Lee took part in the criminal defense of the defendants.

The main issues included the scope of individual officers' and employees' criminal liability within the bank's internal decision-making and chain of instructions, whether they acted as co-principals, authority to prepare documents and intent to forge, and whether the bank suffered a financial loss for purposes of breach of trust.

Attorney Lee analyzed the structure of the financial transactions and the bank's internal procedures, and contested whether the defendant acted as a co-principal in each offense in light of the defendant's actual position and role.

He also focused the defense on authority to prepare documents, whether superiors had given instructions or approval, the likelihood of loss to the financial institution, and the defendant's specific knowledge of and degree of involvement in the alleged fraud and embezzlement.

The court of first instance acquitted on the charge of fraud against the bank and the fraud charge relating to extending a loan repayment date, and also found part of the embezzlement charges not proven.