The defendant shall pay 56,981,282 won to the applicant for compensation by deceit.

3.2

On July 16, 2010, the Defendant was sentenced to a suspended sentence of six months in imprisonment with prison labor at the Ulsan District Court for fraud, etc., and the said judgment became final and conclusive on the 24th of the same month.

On October 17, 2005, the Defendant: (a) awarded a successful bid under Article 810 of the building D (hereinafter “the instant real property”); (b) completed the registration of ownership transfer; and (c) obtained a loan of KRW 64 million from the Seobol Credit Union on the 19th of the same month, the Defendant created the right to collateral security (hereinafter “the instant right to collateral security”) with the maximum debt amount of KRW 83,200,000,000 for the instant real property in the future.

The Defendant, who was not easy to rent the instant real estate due to the instant collateral security, was aware that “to pay the leased security deposit to the person who intends to rent the instant real estate with the leased security deposit so that no problem exists in the recovery of the deposit by repaying the secured debt of the instant collateral security” and concluded a lease contract, and subsequently, was willing to obtain a loan from the Western Credit Union by way of repaying part of the secured debt with the deposit and appropriating the instant collateral security again.

On December 3, 2005, the Defendant stated that the Defendant would immediately return the deposit money to the victim C, who had not concluded the lease agreement due to the instant mortgage at the F Office located in Ulsan-gu E office, Ulsan-gu, Seoul, that “if the Defendant repaid the amount of the secured debt of the instant right to collateral security to receive KRW 50 million from the victim as the security deposit to be received KRW 64 million, the obligation would not remain at least 14 million, and at the time of termination of the lease agreement, the Defendant would immediately return the deposit.”

However, in fact, the Defendant used the instant right to collateral security after repayment of KRW 50 million with the lease deposit received from the victim, and received an additional loan of KRW 47 million. Thus, the secured amount of the instant right to collateral security was at least KRW 61 million, not with the amount of KRW 14 million, and the Defendant did not have any particular property other than the instant real estate.