무료 바카라 게임

1. Case summary

The defendants were accused of fraud in relation to a so-called “planned real estate sale”, in which they had purchased development restricted land, had divided land into small pieces and had sold them to customers, and an unregistered network market business (through which they earned sales of KRW175 billion in total). We substantiated that they had not deceived buyers with regard to development restriction and the buyers had purchased land with expectation that the land price would increase in the long term. We also substantiated that the level of sales representatives did not reach that that required registration. We eventually obtained the decision that the defendants were not guilty.

① Who did Barun Law represent?

We represented sales representatives of an entity engaging in selling real estate after purchasing currently development restricted land and dividing the land into small pieces (a so-called “planned real estate sale”).

② Litigation and our role

The alleged crime of fraud: The prosecutor accused the defendants of deceiving customers as if land would be developed even though there was no chance of development. We examined buyers, who claimed that they were victims, and sales representatives, and clarified that the defendants had fully informed them of development restriction, had explained them of the possibility that the land price were likely to increase in the long term, and the buyers had agreed to the defendants’ explanation and information to decide to buy land from them. The defendants were found not guilty of the alleged crime of fraud.

The alleged unregistered network marketing business: The prosecutor accused that the defendants’ company constituted a multi-level marketing company with three levels or more that required registration because it had multi-layers of job titles such as manager, team head, senior manager, director, executive director and president. Resorting to the legal definition of multi-level marketing, we substantiated that network marketing used by the defendants for sales representatives did not meet the relevant elements. The defendants were found not guilty of the allegation of unregistered network marketing business.

③ Decision and implication

If a purchaser is not an end-user and is not deceived in the basic facts in land transactions made for investment with a long-term outlook, a certain degree of exaggeration is allowed in commerce with respect to investments based on long-term prospects, and the rest is up to customers to judge for themselves. This is a judgment confirming that the definition stipulated in the Door-to-Door Sales Act should be strictly interpreted in accordance with the principle of criminal justice in relation to multi-level sales. It is also a judgment that confirms the principle that it is necessary to distinguish between those who have committed criminal acts and those who have not, in a social atmosphere in which the media unilaterally stigmatizes certain business practices of selling real estate as the “planned real estate marketing” or “splitting interests in real estate.”