“Real Estate Scam Using Adoption…”

Thanks to the K@W list for this article.  Unfortunately I think the permalink may be gone, so you may only read it from here.

Real Estate Scam Using Adoption Fraud Busted

MARCH 24, 2008 03:16

A street vendor, identified only as “Kim,” visited a loan shark in
July last year to seek emergency funds. But what awaited him was a
seemingly lucrative offer.

The loan shark, identified as “Bang,” offered 10 million won (10,000
U.S. dollars) if Kim pretended to put up his two young daughters for
adoption.

After thinking about it for a couple of days, Kim accepted and waived
his rights to his daughters. A street cleaner “Choi” then adopted the
two and applied to buy a luxury condominium in Incheon under the
guise of having three minor dependents without a home. Choi scored
highly in the application process and obtained the right to purchase
the unit in November last year.

The loan shark then paid Choi a commission and had Choi resell his
exclusive purchasing right to a third party through a real estate
agent.

The Seoul Metropolitan Police Agency busted Bang and an adoption ring
comprised of 14 members who allegedly raked in about half a million
dollars through real estate and adoption fraud.

Authorities also charged 20 biological and 19 adoptive parents for
accepting between two million and ten million won to help the ring.

The ringleader knew that housing law gives preferential privileges to
a home applicant who has an adopted child. The con artists focused on
recruiting parents of children under five years old since they get
more favorable consideration.

That way, they illegally obtained the rights to buy 21 units in the
Seoul metropolitan area and resold them to third parties, earning
between 60 million and 90 million won per unit.

A police official said, “To adopt a child, all you need is a sheet of
paper. Nobody checks authenticity in the application process. That’s
why they could make a fortune.”

http://english.donga.com/srv/service.php3?

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