On April 14, 2017, the Defendant was sentenced to the Seoul Central District Court for a suspended sentence of 8 months of imprisonment for fraud, and the said judgment became final and conclusive on April 22, 2017.

On September 30, 2015, the Defendant: (a) received all rights and obligations regarding E’s business from F, the representative director of E, in the Seocho-gu Seoul Metropolitan Government Office for Victims E (States; hereinafter “E”); (b) deposited KRW 700 million into E as the corporate acquisition fund; (c) paid KRW 50 million on the same day; and (d) paid the balance by October 12, 2015; and (e) registered G as the representative director and substantially operated E on October 1, 2015.

On October 6, 2015, the Defendant received discount amounting to KRW 70,351,386,00 from H representative I, and deposited KRW 180,351,386 among them in the name of J bank account (Account Number K) used by the Defendant on October 8, 2015. On October 7, 2015, the Defendant received discount amounting to KRW 110,000,000 in the name of E on October 7, 2015, and granted KRW 42,99,00 in the aggregate deposited into the national bank account under the name of J, and paid KRW 223,340,386 in aggregate to N on October 8, 2015, the Defendant arbitrarily used KRW 160,000,000 in the name of the Defendant to pay KRW 5,0000,000 in the name of the Defendant to the individual bank account under his/her name.

Accordingly, the Defendant embezzled the victim E’s bill discount amounting to KRW 26 billion, which was kept in his/her business.

Summary of Evidence

1. Entry of the defendant in part in the first trial record;

1. Each legal statement of witness F,O, and P;

1. Some statements made to the accused in the protocol of interrogation of the suspect against the prosecution;

1. A protocol concerning suspect interrogation of prosecution investigators concerning G;

1. Statement made by each prosecutor (public prosecutor, prosecutor and prosecutory investigator) with respect to F, P, I,O, and M (includingO statement in the statement protocol with respect to F);

1. A certified copy of the corporate registry (E), minutes of a temporary general meeting of shareholders, a business transfer contract, a business registration certificate, a KRW 500 million loan certificate, the current status of the issuance of the paid bill, and the field of each