A Imprisonment with prison labor for one year, and for ten months, each of the defendants B.

[criminal power] On October 25, 2013, Defendant A was sentenced to three years and six months of imprisonment for a crime of fraud and a violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission at the Seoul Central District Court on January 16, 2014. Defendant B was sentenced to two years of imprisonment for a violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission at the Seoul Central District Court on October 25, 2013, and the said judgment became final and conclusive on October 28, 2013.

【Criminal Facts】

Defendant

From May 10, 2010 to December 3, 2012, A, as the representative director of the Victim E Co., Ltd. (hereinafter referred to as “E”), who runs an investment advisory business, etc., has overall control over all the affairs such as the conclusion of investment contracts, investment including stocks, and fund management. Defendant B, as a director of the above E from August 18, 2010 to December 3, 2012, was engaged in the affairs such as investor consultation, fund management, and execution.

From April 22, 2011, the Defendants received investment funds from investors in E office located in the Seocho-gu Seoul Metropolitan Government F building in the E office, and deposited money in the E-name bank account (Account Number G) for the victim company. On April 25, 2011, the Defendants transferred KRW 2 million from the above account to the new bank account (Account Number H) with the Defendant’s name, and then arbitrarily used them as entertainment expenses, etc. from Gangnam National Assembly members around that time.

Defendants, as well as those attached between April 22, 201 and November 30, 2012, shall be attached to the Defendants.

1. A total of KRW 848,523,773, out of the money deposited in the victim company’s account over 116 times in the manner described in the list of crimes, was arbitrarily used.

Accordingly, the Defendants conspired and embezzled the property of the victim company.

Summary of Evidence

1. Defendant B’s legal statement, Defendant A’s partial legal statement

1. Each legal statement of the witness I and B (limited to the defendant A);

1. The second and the third prosecutorial interrogation protocol against Defendant A (including the part concerning Defendant B in relation to the second prosecutorial examination) and the second prosecutorial examination against Defendant B.