On February 9, 2011, the Defendant was sentenced to two years of imprisonment with prison labor at the Seoul Central District Court for fraud, etc., and the said judgment became final and conclusive on March 4, 2011.

The defendant, while taking overall charge of the business affairs of the company as the chairperson of the D Co., Ltd., in order to attract investment in the unsold apartment resale business with many unspecified investors, he was able to make a lot of profits.

On August 22, 2008, the Defendant concluded that, at the office of the above company located on the sixth floor of the Gangnam-gu Seoul E-building, “When making an investment or inducing an investment, the Defendant purchased an unsold apartment with an investment deposit at the lower price from 25% to 10%, and then resells it at the lower price than the actual selling price, and then raise a lot of profits at the lower price than 10%. In the event that an investment is made in the company with a three-month maturity, the Defendant would pay 10% interest equivalent to 10% of the principal per month and pay the total principal upon maturity.”

However, in fact, the defendant did not have any intention or ability to divide the total amount of the principal of the investment and the interest equivalent to 10% per month into the investors, even if he received the investment money, because the price of the apartment already purchased due to the financial crisis at the time has decreased and the possibility of creating profits has been rarely difficult to resell at the same time.

In such a manner, the Defendant enticed the victims from the victim F to make an investment therein, and transferred KRW 30 million from the victim F, KRW 80 million, including KRW 50 million on October 17, 2008, and KRW 100 million on September 10, 2008 from the victim G to the bank account in the name of the above company, respectively. The Defendant transferred from the victim I to the bank account in the name of the above company on September 16, 2008, KRW 10 million on September 16, 2008, KRW 70 million on October 14, 2008, and KRW 130 million on the pretext of investment, including KRW 50 million on November 3, 2008 and KRW 50 million on September 14, 2008.