The Defendant: (a) was a person who operated C; (b) was newly constructing a factory in the Jeonsung-gun and was carrying out the business of manufacturing health foods using rats bean; and (c) required funds equivalent to KRW 1.8 billion for the purchase of factory sites, construction of factories, purchase of raw materials, operation of factories, etc. while carrying out the business of manufacturing health foods, etc.; (d) however, the Defendant was simply expected to be able to raise KRW 1 billion immediately according to the investment agreement entered into with Jeonnam-do and Sungsung-gun around April 201, and there was no other obvious method to raise funds; and (e) there was no intention or ability to manufacture, sell, by constructing a factory normally.

1. Fraud against victim D;

A. On June 201, the Defendant made a false statement that “The Defendant purchased the land to be used as a factory site for the construction of a factory in the Jeonsung-gun, Jeonsung-gun, Seoul. The Defendant purchased the land to be used as the site for the factory in order to build a factory in the Jeonsung-gun. The Defendant would impose a large amount of money with the special sales of the Jeonsung-gun, Sungsung-gun. 50 million won as the agency deposit.”

On July 4, 201, the Defendant, by deceiving the victim as such, received KRW 50,00,000 as an agency deposit from the victim.

B. On August 18, 2011, the Defendant made phone calls to the victim at a place where the location is unknown, and made a false statement to the victim, stating, “The vehicle transport cost is insufficient to transfer machinery, equipment, etc. from Seoul to the song-gun. When finishing only the roof work of a factory in the song-gun, the Defendant immediately made the product production and left money.”

The Defendant, as such, by deceiving the victim, received 5,000,000 won from the victim to the corporate bank account under the name of the Defendant in his/her own name.

2. Fraud against the victim G.