except that the execution of the above punishment shall be suspended for two years from the date this judgment becomes final and conclusive.

On July 20, 2018, the defendant was sentenced to three years in Seoul High Court to imprisonment with labor for a violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud), and the judgment was finalized on October 25, 2018.

The defendant is a leader who has operated a system in the Gangnam-gu Seoul Metropolitan Government.

Unlike the general serial number system that sets the order of withdrawal from the fraternity, the Defendant paid the fraternity in accordance with the distribution schedule that set the monthly advance payment from the fraternity members, but in the case of the remaining fraternity members, the Defendant set the order of withdrawal from the fraternity in advance only to some members, and operated a large number of fraternitys in the way of paying the fraternity to the fraternity members when the fraternity members request the payment of the fraternity.

Before around 2010, the Defendant had already been liable for financial rights worth more than KRW 600 million. From around 2001 to around 2010, the Defendant operated the system by means of a return prevention, such as not only using the payment of the accounts of the accounts, but also using the payment of the accounts of other accounts, when the bad credit, which was not paid to the members of coal industry, reaches approximately KRW 30 to KRW 4 billion, with the bad credit related to the operation of the accounts accumulated.

In addition, as there are many guidances that want to get a larger amount of guidances in order to reduce the number of guidances operated from around 2009 due to the increase of the Defendant’s loss due to the guidances, the total amount of guidances coming into and out of the limit is reduced, which led to a decrease in the number of guidances, which led to the lack of funds to pay the previous guidances. From 2010 to 2010, the Defendant borrowed money from the guidances or sells personal property.