【Criminal Records of Crimes】 On September 8, 2016, the Defendant was sentenced to a suspended sentence of two years for criminal fraud at the Seoul Central District Court on August 8, 2016, and the said judgment was finalized on September 20, 2016.

[Criminal Facts]

1. The Defendant is a representative director of C, a corporation established for the purpose of wholesale and retail business of cosmetics.

On October 2015, the Defendant would pay KRW 180,000 per day to the Victim F in Eart cafeteria located in the counter of Changwon-si, Changwon-si, “A Co., Ltd. has many high-profit manufacturers, which invests KRW 3.5 billion in the G Cosmetics Co., Ltd., and will receive KRW 30,000,000 in the shares of the Gangwon-do raw material factory located in Taewon-si, and will pay KRW 6,60,000,000 per day by paying KRW 1.3.3 million to the C Company.

“A false statement was made to the effect that it was “.”

However, in fact, the above company did not export cosmetics, did not have any particular profit assistance, and only received investments from the next-order investors and repaid the high-rate investment principle to senior investors, so the repayment of the investment principle is inevitable due to the aggravation of financial standing, and eventually, even if attracting investments from the injured party, there was no intention or ability to pay the high-amount investment principle exceeding the principal as above.

Nevertheless, the Defendant: (a) by deceiving the victim and received KRW 3,300,000 from the victim under the name of the said victim as investment money; (b) and (c) from July 30, 2015 to January 21, 2016, the Defendant transferred KRW 635,23,595, in total, to the Agricultural Cooperative and a corporate bank account in the name of the said company, as shown in the list of crimes attached hereto, from 102 victims (except No. 66) on several occasions, as stated in the list of crimes.

2. Any person who violates the Act on the Regulation of Similar Receiving Acts and subordinate statutes shall operate a business of raising funds from many and unspecified persons without obtaining any authorization, permission, registration, report, etc. under other Acts and subordinate statutes.