A group that failed to return rental deposits received from tenants through the so-called 'gap investment' method has been caught by the police. They also deceived financial institutions into obtaining loans by misrepresenting lease agreements as monthly rental contracts.
On the 8th, the Seoul Yeongdeungpo Police Station announced that they arrested eight people on charges of fraud and transferred a 70-year-old woman, A, who is the main suspect, to the prosecution.
According to the police, A is suspected of failing to return rental deposits to tenants after purchasing 48 dwellings in Seoul and Incheon under her name and that of her relatives over a period of about four years starting in 2019. So far, 36 victims have been identified, with the damage estimated at approximately 8.8 billion won.
A created so-called 'vacant houses' where the sale price was similar to the rental deposit. It is known that the deposits secured in this way were used for loan repayments, living expenses, and business funds.
Additionally, A is accused of colluding with a certified broker to forge monthly rental contracts after making rental agreements with 48 tenants and embezzling about 7.1 billion won in collateral loan funds obtained from 12 financial institutions.
A police official noted, 'Many victims did not subscribe to rental deposit insurance, so they have not been able to recover their deposits.'