Case Type: Criminal

Outcome: Non-Prosecution (No Suspicion)

Case Detail:

The Criminal Defense Team of Suhn Law Group (Lead Attorney: May H. Kim) successfully obtained non-prosecution (no suspicion) decisions in all five criminal complaints filed against a client who operated a specialized equipment development and supply business. The client had been accused by five investors of fraud involving investment funds totaling over KRW 1 billion.

The client found himself in a difficult situation after delays in repaying certain investments due to a recent deterioration in business conditions, which led all five investors to simultaneously file criminal complaints for fraud. The complainants alleged that the client had (i) deceived them by entering into fictitious supply contracts, and (ii) committed so-called “purpose fraud” by using the investment funds for personal debt repayment or living expenses rather than for the agreed business purposes.

Through close communication with the client, the Criminal Defense Team of Law Firm Seon thoroughly examined the overall context of the case and meticulously collected and analyzed a large volume of objective evidence, including financial transaction records and tax invoices. In the process, the team established that (i) certain investors had already received returns exceeding their original principal, and (ii) the delay in repayment constituted, at most, a matter of civil debt non-performance, which did not satisfy the legal elements of criminal fraud. Based on this analysis, the team presented clear and well-grounded legal arguments.

In addition, the defense team maintained close and effective communication with the investigators assigned to each case, responding promptly and accurately at every stage of the investigation. Whenever investigators raised questions, the team provided timely explanations supported by well-organized objective materials. As a result, all five investigators accepted the defense’s arguments and rendered non-prosecution (no suspicion) decisions in all five fraud cases.

In the course of business, it is not uncommon for entrepreneurs to receive investment funds on short notice and later face unavoidable financial difficulties due to worsening management conditions. In many such cases, strained relationships with investors lead to criminal complaints. In fraud cases involving complex investment structures and extensive financial records, successful defense requires not abstract or superficial responses, but rather thorough analysis of objective evidence combined with precise legal argumentation. Nevertheless, many attorneys avoid this approach due to the time and cost involved, opting instead for vague and generalized defenses. Such approaches fail to provide investigators with sufficient grounds to issue non-prosecution decisions and reasons therefor, making it difficult to achieve the outcome sought by the client.

Going forward, Suhn Law Group (Lead Attorney: Hee-yeon Kim) will continue to provide the highest standard of legal services to clients who have been unfairly subjected to criminal complaints, drawing on its expertise and extensive record of successful defenses.

Case Contact: Attorney May H. Kim