A. Defendant G and Defendant F made a company under the name “I” around March 2015, and in the foregoing company, Defendant F was the representative of the company, Defendant G’s computerized management director, and Defendant H, a general business director, who is the general responsibility for the management of investment funds, respectively.

B. From March 2015 to October 2015, the Defendants: (a) invested money to investors, including the Plaintiffs from March 2015 to October 2015; (b) invested money in I in J, a gold mine mining company, the United States; and (c) returned three times the investment amount from the said mining company. If an investor invests one code (2.6 million won), the said investor would pay 4.8 million won per share as dividends in installments once a week; and (d) receive the investment amount from the trusted investors; and (e) the amount invested by the Plaintiffs is as stated in the column of “total amount of payment” in the attached Table.

C. However, even if the Defendants received investments from the investors at the time, they continued to pay a high-amount dividend that should be paid to senior investors as dividends to junior investors, and where subordinate investors are not recruited, they could not eventually return the principal amount to the investors.

In addition, most of the investments was not invested in the U.S. golding company, and there was a situation in which it was not possible to pay the dividend that was promised to investors including the plaintiffs because of its no loss.

1) Defendant G and H were indicted for violating the Act on the Regulation of Fraud and the Act on the Regulation of Conducting Fund-Raising Business without Permission due to the foregoing act, and was sentenced to a conviction of two years and ten months of imprisonment at the Busan District Court on January 12, 2017 (Seoul District Court Decision 2016No3149; hereinafter “related criminal case”).

(2) The facts constituting the above final judgment include the Plaintiffs’ investment funds, such as the entry of the item in the column of “total amount of deposits” in the attached Table.

(b).