G shall be punished by imprisonment of one year and six months, by imprisonment of Defendant A, by imprisonment of four years, by Defendant X and Y, by imprisonment of three years.

[2013Gohap32] Defendant G was sentenced to seven years of imprisonment for a violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) at the Daegu High Court on July 4, 2012, and the judgment was finalized on November 29, 2012.

1. Joint criminal conduct by Defendant A, X, and Y;

A. The violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) (hereinafter “D”) is a representative director of the company D (hereinafter “D”) located in the Gangnam-gu Seoul Metropolitan Government E building (hereinafter “Seoul Seocho-gu Seoul AV building”), Defendant X is a director of D, Defendant Y is a person working as the head of D’s headquarters, and D is a company established by H (hereinafter “H”) as a separate corporation in the form of a branch office to attract investors.

The above Defendants, from August 2010 to August 201, 201, explained that “The victims are raising enormous profits to engage in the business of collecting non-performing claims at low prices” to the victims by using T, R, F, and W, which are business employees, at the above D office. In this case, if an investment was made without any restriction from the minimum of KRW 10 million, one year shall be paid at a fixed rate of at least 18% of the principal and interest.”

However, in fact, H and D did not yield profits due to extremely low rate of collection of non-performing loans purchased at the time, and there was no other profit accrued, but at the same time, it is required to pay the expenses for operating a 18.5% of the invested amount and the paid-in capital from the investment amount to the 18.5% of the invested amount. Thus, even if the investors receive from the investors the money without any limit on the investment limit, the principal and interest cannot be paid within one year for the investment amount. Since H and D continued to receive the investment amount by the method of paying the interest, principal, etc. of 18% per annum for senior investment, it is ultimately possible to pay the investment principal to the investors.