On March 13, 2015, the Defendant was sentenced to ten months of imprisonment for fraud at the Seoul Northern District Court (Seoul Northern District Court) and the judgment became final and conclusive on May 29, 2015.

1. On January 18, 2013, the Defendant entered into an oral contract with the victim E on January 18, 2013, with a plan to construct a factory producing a mountain steering vending machine on the (DD office operated by the Defendant (hereinafter “instant site”) located in the Seoul Northern-gu Seoul Northern-gu building 210, under which the Defendant would make the said new construction (hereinafter “instant construction”) to contract the said construction (hereinafter “instant construction”) to the victim for the said construction. The Defendant concluded a false contract with the victim, stating that “The money is required to be paid at the construction design cost, and the victim would be paid at KRW 25 million. The payment will be made within the completion of the construction.” The Corporation will not proceed within one month.

However, the defendant had no intention or ability to use the borrowed money from the victim as the design cost because the victim had borrowed money as the design cost by taking advantage of the situation where he could not comply with his request, and there was only plan to use it for personal purposes, such as transportation cost, food cost, and entertainment cost, and there was no intention or ability to use it as the design cost.

Nevertheless, the Defendant, by deceiving the victim as above, received 25 million won from the victim in the name of a corporate bank account in the name of D (State) in the name of the same day, and acquired it by deceit.

2. On February 4, 2013, the Defendant: (a) drafted a written contract with the victim H on February 4, 2013 at the office of DD, 2013, and falsely concluded that “only KRW 25 million is required to design the construction cost; (b) shall be repaid within the completion of the construction work; and (c) the Corporation shall be repaid within one month if the construction is not carried out.”

However, in fact, the defendant is a design fee by taking advantage of the situation where the victim who received the construction is difficult to refuse his request.