A shall be punished by a fine of 7 million won, and by a fine of 2 million won, respectively.

The above fines are imposed by the Defendants.

Defendant

A is the representative director of D, and Defendant B is the auditor of D, and Defendant B is the representative director of D, and Defendant B is the corporation whose head office is located in 5th floor of the building in Suwon-gu, Busan, and whose purpose is food distribution business, Defendant A is the corporation, which has its own research institute and factory, and Defendant A held a comprehensive distribution and trade company with capital of one billion won and a sound presentation meeting for business related to door-to-door sales and mail order to attract investors, and Defendant B conspired to know this fact to take charge of the funding of D.

1. On May 25, 2009, Defendant A held a business explanation meeting at the office of the above state D on May 25, 2009, and held a research institute and factory itself in Cheongbuk-gun G, Gyeongbuk-do, and sold health functional foods produced in this factory. The Defendant B supplied the aforementioned materials to the victim by selling the products at a low cost and at least 30% of the product purchase cost as sales commission. In addition, if the agency sales commission (275,000 won in cash per one unit, card 295,000 won in cash) is purchased in five units or more, the company would make re-investment in new products or new businesses, and continuously pay 50% of the total sales commission sales to the new products or new businesses in proportion to the old unit sales commission.” The Defendant B provided the above materials to the victim.

However, in fact, (State)D did not own a research institute and a factory, and in fact did not make any profit from the investment, such as paying the investment money to other victims by way of returning it, and there was no way to raise funds by acquiring money under the name of investment continuously by attracting new victims in order to pay sales allowances and dividends to the victims. Accordingly, the above profit and the investment principal are paid.