A. Defendant C and D’s multilevel fraud crime 1) Defendant C organized and operated a multilevel chain company M and N, etc. in the Daegu area from around 2004 to around November 2008, and even if one of the above companies was investigated or closed down from around September 2007 to November 2008, Defendant C established P, F, and E, Inc. in the Busan area for the purpose of continuing to operate the organization through other companies (hereinafter collectively referred to as “E, etc.”).

(2) As the head office of the headquarters planning office of Defendant C, etc., Defendant C, etc. performed the tasks such as education schedule management and contract-related documents management as the Do, E, etc., as the head office of the headquarters planning office of Defendant D, etc.

3) The Defendants conspired with each other, and explain the following as follows, either directly or through E from October 2007, and directly or through the affiliated agency recruitment plans, including E, to the Plaintiffs (appointed parties) and the designated parties (hereinafter “Plaintiffs”).

A) A number of victims including B, including E, made investments. If an enterpriser is a salesman, the head of division may raise the sales performance of at least 30 units and the conditions of their purchase performance of at least 5 units, on the condition that the sales performance of at least 80 units and 13 units of their own purchase records are subject to the conditions of at least 40 units of 140 units and 25 units of their own purchase records, on the condition that the head of division shall have a total of at least 140 units of 140 units of 140 units of their own purchase records and 25 units of their own purchase records after becoming a business operator.