Violation of the Act on Aggravated Punishment, etc. of Specific Economic Crimes (Fraud);

Forgery of private documents, and uttering of falsified

Attorney C, D

On December 1, 2001, the Defendant entered the Seocho-gu Seoul Metropolitan E-building FF Co., Ltd. (hereinafter referred to as “F”) and was in charge of all affairs related to stocks, such as stocks listed on the KOSDAQ, from September 30, 201 as the head of the general affairs team until September 30, 2017.

Victim G and H are the honorary chairperson of F, and Victim I is the representative director of F.

1. Violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes;

As above, the Defendant, while in charge of stock-related affairs, received the cards, seals, and passwords of the securities account from the above victims and managed the securities account of the victims.

The defendant had tried to deliver shares at will from the security account of the victims to use them for the repayment of personal debts, etc.

On January 18, 2005, the Defendant released F’s 60,000 shares (type 2,145 won per share) from the securities account of the victim G using the securities card, etc. held as above, and stored F’s 60,000 shares (type 2,145 won per share) in the Defendant’s securities account in the same manner as indicated in the attached list of crimes, and released F’s shares from the victim G’s securities account to October 26, 201 in the same manner as indicated in the attached list of crimes (i.e., 205, Jan., 18, 201 to Oct. 26, 201; (ii) released F’s 1,000 shares (type 3,66,834,010 won per share); and (iii) released 200,000 shares from the victim H’s securities account to March 29, 2012 to 30,2018.

2. Forgery of private documents and uttering of private documents dated April 17, 2017;

(a) Forgery of private documents;

On April 17, 2017, the Defendant stated in the application form for stock transfer and the application form for stock transfer that the Defendant applied for the shipment of 20,000 shares from FF’s securities account, and entered the FF’s seal impression in the applicant column as “F(state).” On the other hand, the Defendant arbitrarily affixed F’s seal impression in the company for business management.

Accordingly, for the purpose of exercising rights, the Defendant, without authority, forged an application form for stock withdrawal in F’s name, a private document on the duty of rights.

(b) Events of a falsified investigation document;

The Defendant, at the above date and at the above place, submitted an application for the withdrawal of forged shares in kind and submitted it as if it were a document duly formed to the employee of the unrefluent securities without knowledge of the forgery.

3. Forgery of private documents and uttering of private documents dated August 11, 2017;

(a) Forgery of private documents;

On August 11, 2017, the Defendant stated in the application form for stock withdrawal and application for the release of 30,000 shares from the F’s securities account, and stated in the applicant column the F’s name “F(State)” and affixed the F’s seal impression on his/her own business.

Accordingly, the defendant, for the purpose of exercising authority, forged an application form for stock withdrawal in F’s name, which is a private document on rights and obligations.

(b) Events of a falsified investigation document;

The Defendant, at the above date and at the above place, submitted an application for the withdrawal of forged shares in kind and submitted it as if it were a document duly formed to the employee of the unrefluent securities without knowledge of the forgery.

4. Violation of the Act on the Aggravated Punishment of Specific Economic Crimes;

On April 17, 2017, the Defendant submitted a forged application with respect to an employee of the other securities with no name at the bank center of the Korea Securities and Exchange Center as above, and took place as if the F were duly authorized to withdraw the shares and to withdraw the shares.

However, the defendant did not have been delegated by F with the authority to make spot withdrawals in kind.

On April 17, 2017, the Defendant: (a) by deceiving a staff member of the tacta securities employee, released 20,000 shares of the Victim F’s own stocks (20,950 won per share, market price of 419,00,000 won) on April 17, 2017; and (b) by deceiving a staff member of the tacta securities using the same method on August 11, 2017, the Defendant acquired 30,000 shares of the Victim F’s own stocks (20,500 won per share, market price of 615,000,000 won); and (c) by deceiving the staff member of the tacta securities, acquired 50,00 shares of the amount of 1,034,000 won per share.

Summary of Evidence

1. Defendant's legal statement;

1. Legal statement of the witness J;

1. Each police statement made to J;

1. An application for shipment;

1. Certificates of employment, the details of each embezzlement, the closing price of F stocks, the analysis of embezzlement, and the details of each account;

1. Application of Acts and subordinate statutes to a report on investigation (information on bank accounts of a suspect), investigation report (Correction of a list of crimes);

1. Article relevant to the facts constituting an offense and the selection of punishment;

Article 3(1)1 of the former Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Amended by Act No. 13719, Jan. 6, 2016); Article 355(1) of the Criminal Act ( comprehensively including embezzlement of victim H), Article 355(1)2 of the former Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Amended by Act No. 11304, Feb. 10, 2012); Article 3(1)2 of the former Act on the Aggravated Punishment, etc. of Specific Economic Crimes (amended by Act No. 11304, Feb. 10, 2012); Article 3(1)2 of the former Act on the Aggravated Punishment, etc. of Specific Economic Crimes (amended by Act No. 15256, Dec. 19, 2017); Article 35(1) of the Criminal Act (Embezzlement of victim I); Article 231 of the former Act on the Aggravated Punishment, etc. of Specific Economic Crimes (amended by Act)

1. Aggravation for concurrent crimes;

Articles 37 (former part of Article 37, Article 38 (1) 2, and Article 50 of the Criminal Act [Aggravation of concurrent crimes with punishment prescribed in the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Embezzlement) against Victims H with the largest punishment]

Reasons for sentencing

1. The scope of punishment by law;

From 5 up to 45 years of imprisonment;

2. Scope of recommendations according to the sentencing criteria;

(a) Scope of recommendations and sentences for each crime;

1) Basic crime: Violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Embezzlement)

[Determination of Punishment] Embezzlement and Breach of Trust, Type 4 (not less than 5 billion won but less than 30 billion won)

【Special Convicted Person】

[Scope of Recommendation] Four to Seven years of imprisonment (Basic Area)

2) Concurrent crimes: Violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud);

[Determination of Punishment] Fraudulent Crimes, Type 3 (at least KRW 500,000, less than KRW 5 billion),

[Special Mitigation (Aggravated Mitigation)] In a case where punishment is not imposed or damage is recovered from a considerable part, / In a case where the method of acceptance of crime is very poor

[Scope of Recommendation] Three to Six years (Basic Area) of imprisonment, and Application of Criteria for Handling Multiple Crimes: 4 to 10 years of imprisonment (the maximum of the sentence scope of basic crimes plus 1/2 of the maximum of the sentence scope of concurrent crimes)

(c) Scope of modified recommendations: Five to ten years of imprisonment (the lowest limit of the sentencing range recommended by the sentencing criteria is lower than the minimum limit of the applicable sentencing range in law, and thus, the lower limit of the applicable sentencing range in law).

3. Determination of sentence;

The Defendant recognized each of the crimes of this case and divided wrong facts. The Defendant was the first offender who had no record of criminal punishment before the instant case. The Defendant embezzled the shares of KRW 1,026,80 from the victim G to the victim G and returned all the shares of KRW 273,00 to the above victim G. It is reasonable to deem that the shares embezzled from the victim I were returned to the above victim. Of KRW 50,000 of the shares acquired by the Defendant from the victim F, 22,800 of the shares of KRW 50,000 were returned to the above victim. The Defendant paid KRW 76,30,910,712 to the above victim for the recovery of damage, and transferred the claim amounting to KRW 240,910,000 to the above victim. Meanwhile, the Defendant embezzled the F shares of KRW 11.40,000,000, total amount of the shares of KRW 130,000,000 of the victim’s shares to the victim’s shares.

The punishment as ordered shall be determined by comprehensively taking into account the following circumstances, such as the defendant's age, character and conduct, intelligence, environment, and circumstances before and after the crime, and all the sentencing conditions shown in the arguments.

Judges Kim Gin-young

Judges, Senior Jins