A. Defendant U is the actual representative of the Z Co., Ltd. (hereinafter “Z”) that runs an investment advisory business, etc.

Defendant W is the intra-company director and marketing head of the Z, and Defendant X is the nominal representative director, and Defendant V is the incidental table.

DefendantY is the representative of the “A” company managing Z’s investment funds.

Criminal facts (Summary)

1. Around March 2015, the Defendants made a false statement to the victims of the violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) stating that “If they charge the victims with the money invested in the Z, they will invest the money in an overseas futures, guarantee the principal after three months, and guarantee the investment return equivalent to approximately 2.5% per month.

However, in fact, the Defendants thought that most of the investments were used for the purpose of the ZB investors and the ZB investors, such as the return of investment funds.

Nevertheless, as seen above, the Defendants deceiving the victims and received a total of KRW 138,031,00,000 from 2,993 victims.

2. No person who violates the Act on the Regulation of Conducting Fund-Raising Business without obtaining authorization or permission, or making registration or report under other Acts and subordinate statutes shall commit any act of raising funds from many and unspecified persons as a business to make payment of the principal in the future or any amount in excess thereof, and receive money under the pretext of deposits, installment savings, installments, deposits, etc.;

Nevertheless, as described in paragraph (1), the Defendants received a total of KRW 138,031,00,000 from investors.

3. No investment advisory business entity or discretionary investment business entity that violates the Financial Investment Services and Capital Markets Act shall take custody or deposit of money from investors;

Nevertheless, the Defendants, as described in paragraph (1), shall receive a total of KRW 138,031,00,000 from the investors who concluded the discretionary investment contract with the Z from the AC account.