A Imprisonment with prison labor of four years and fine of one billion won, defendant B with prison labor of two years, defendant C and D respectively.

Defendant

On January 14, 2010, A was sentenced to six months by the Daegu District Court for a violation of the Door-to-Door Sales, etc. Act, and the execution of the sentence was completed in the Daegu Prison on July 16, 2010.

Defendant

A serving as the president of “stock company C” (Representative H) and “stock company D” (Representative I) who are the most similar-receiving company of functional health foods multi-level multi-level sellers, and the actual operator who exercises overall control over the operation and affairs of the above corporation. Defendant B served as the president of the headquarters of the above corporation located in the third floor of J building in Busan Dong-gu, Busan, and is in charge of soliciting multi-level marketing salespersons (investment attraction) and training (project explanation sessions) in the area of Busan and Gyeong-do. From August 2010 to August 2010, the Defendants planned to receive money from the third floor of the above “C” in the Daegu-gu Seoul Metropolitan City, the headquarters of the said “C” and the headquarters of “D” in the Dong-gu, Daegu-gu, Seoul Metropolitan City, by acquiring money from the multi-level investment funds for the business of selling many unspecified persons, including the headquarters and the headquarters of the 13 branch offices and centers.

Defendant

“Stock Co., Ltd.” is a corporation established for the purpose of manufacturing health food, online shopping mall, and communications sales in the 3th floor of the Daegu-gu K Building, and the Defendant Co., Ltd. is a corporation established for the purpose of multilevel marketing, health food processing, online shopping mall, communications marketing, etc. on the MaB/D2 floor located in Daegu-gu L.

1. Joint criminal conduct by Defendant A and B;

A. Despite the fact that multi-level marketing operators are required to register multi-level marketing business with the competent authority pursuant to the Presidential Decree, the Defendants did not register the multi-level marketing business with the competent authority. From August 28, 2010 to July 9, 2013, the Defendants were “C”, “C”, “D”, and “14 branches nationwide.