Full acquittal on appeal, upheld by the Supreme Court of Korea, in a large land investment fraud and embezzlement case

In an investment fraud case involving a large real estate development project, two employees who handled the company's bookkeeping were indicted for fraud and embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, and each was sentenced at first instance to three years' imprisonment without suspension.

Attorney Jaehoon Lee took on the defense from the appeal stage and contested the criminal liability of both defendants.

The central issues were whether merely having handled the company's deposits, withdrawals and accounting made the defendants co-principals in management's fraud and embezzlement, and whether the defendants shared an intent to commit the offenses together and actually took part in them.

Attorney Lee analyzed the defendants' actual duties and the company's internal decision-making structure, and argued for a distinction between performing ordinary bookkeeping work on management's instructions and actively taking part in a crime.

In particular, he contested co-principal liability by emphasizing that the defendants had not been involved in deceiving investors or in deciding how company funds were used, and had gained no personal benefit from the offenses.

The appellate court reversed the first-instance judgment and acquitted both defendants on all charges. The Supreme Court of Korea then dismissed the prosecution's appeal, and the acquittals became final.

We then also pursued claims for criminal compensation and reimbursement of criminal defense costs to recover the losses caused by the wrongful detention and criminal trial.