Lasting for several years a large conflict between the owners of the hotel Mega Palace Hotel on Sakhalin and well-known businessman Shin Deng Choel finally resolved in favor of the victims. In May 2014 court convicted Shin of fraud and decided to deprive his freedom for 3 years. Active investigation also is carried over Choy Kyoung-Duk, who was the partner of Shin's machinations, and soon he too will be taken into custody.
Scammers, using their connections among businessmen and politicians on the Sakhalin, cranked up several illegal money laundering schemes. Shin took a loan for a large sum of $ 40 million in Kookmin Bank through the company Koinvest, in the case of non-payment under the outpost had been given the hotel Mega Palace Hotel. However, Shin Deng Choel had no legal right to conclude such an agreement, since he was not the owner of the hotel.
At first Shin arrogated to himself shares of the shareholders of hotel Kim Ben Huck and Lim Yong Hyung by using the fact that he was their representative in Russia. Then he forged a letter of their resignation from LAKS CO.,LTD, because this company owns the rights to the hotel. However, he has not paid them about $ 100 000 for their shares. But even after that John owned only 32.14% of the company, so he proclaimed himself the general director of Mega Palace Hotel. Next Choi Kyoung-Duk organized raider seizure of the hotel in order to bring a successful hotel to bankruptcy. There were injuries and deaths among staff.
In case of success Shin Deng Choel would not have to repay the loan to Kookmin Bank, as well as repay personal debts on Mega Palace Hotel in amount of almost 32 million RUB.
Shin succeeded to slow down the work of the investigation in deceptive ways for about 4 years. But the owner of main part of the hotel An Hwa Dya managed to seek justice through the courts with the help of the South Korean police, private investigators and public organizations.