[Criminal Power] On April 22, 2014, the Defendant was sentenced to imprisonment with prison labor for not less than ten months and the judgment became final and conclusive on the 30th of the same month due to a violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission at the Ulsan District Court.

【Criminal Facts】

The Defendant: (a) around January 5, 2012, within the D market located in Ulsan-gu, Ulsan-gu, Dong-gu, Seoul-gu; (b) “The Defendant is a business employee inviting investors to a stock company E with high income; (c) has invested the amount of money equivalent to KRW 7 billion in direct or indirect to receive the interest equivalent to KRW 1 billion in the amount of investment; and (d) has lent the amount of KRW 100 million until April 12, 2012; (c) has repaid the principal amount of KRW 100 million until April 12, 2012; (d) has paid the interest on KRW 130 million in the amount of interest for one year; and (e) has been paid KRW 100,000 in the amount of KRW 130,000 in the amount of interest at the time of purchase and sale owned by the Party F; and (d) has concluded that the lessee will offer the apartment as security without deposit.”

However, in fact, the above E, which the Defendant invested in four gas stations, operated by leasing and operating them at a lower price than 10% of the gas station, and the sales increase by selling the oil at a lower price than the gas station, is the structure where the increase in the number of investors increases, and as such, it is urgent to pay a high rate of dividends, recommendation allowances, etc. to the investors every month, and thus, the dividends promised to be paid to the existing investors by using the investment funds kept by junior investors would not have to be repaid in succession. Under this structure, as long as the new investors continuously increase in water supply, it is anticipated that the Defendants would not pay dividends, and as such, it is anticipated that the Defendant would not be punished for one billion won after one year, and as well as the F apartment owned by the Defendant to provide them as collateral, the right to collateral security of the national bank is secured for the claim of KRW 30 million.