On February 2, 2010, the Defendant was sentenced to one year of imprisonment for fraud in the Jung-gu District Court Goyang Branch, and on August 3, 2010, the Defendant completed the enforcement of the sentence at the Jung-gu District Court’s prison on August 3, 2010. As the representative director of the FF Company, the Defendant, under the name of the said Company, operated FSmp (hereinafter “H”) a FS in the first floor of the building in Sung-nam-gu, Sungnam-si, Seoul, with a view to selling three sponss in Seoul, Gangnam-gu I, J and K, while operating three sponss more in Seoul.

When selling H with the fact that the Defendant manages the sales proceeds of all business stores that he operates at one time in a single deposit account, he thought that all of the card sales proceeds and cash deposits deposited in the deposit account will be sold in a way of exaggerationing the sales proceeds as if they were generated from H’s sales.

Around September 25, 2012, the Defendant: (a) presented a new bank bank account transaction details (transaction details from July 1, 2011 to September 22, 2012) established under the name of the F Co., Ltd. and explained that the sales for the last one year between H was 404,029,000, when the sales for the last one year between H were 404,000,000.

In fact, however, the inquiry about the value added tax presented by the Defendant and the transaction details of the new bank bank account included H not only H’s sales but also sales of other sales stores operated by the Defendant. Since the deposit account transaction details include personal inputs unrelated to sales, H’s sales during the last one year are considerably less than KRW 400 million, and H’s wages and management expenses are not only KRW 400 million.