A. Defendant U is the real representative of the Investment Advisory Company (hereinafter “Z”), Defendant W is the internal director and the head of the marketing headquarters, Defendant X’s nominal representative director, and Defendant V’s incidental title.

DefendantY is the representative of the “A” company managing Z’s investment funds.

B. On April 4, 2016, the Seoul Central District Court convicted Defendant U of the following criminal facts, and sentenced Defendant U to imprisonment of 13 years, Defendant W and V imprisonment of 7 years, Defendant X and Y of 4 years, respectively.

(Seoul Central District Court 2015 Gohap974, etc.) criminal facts (a summary)

1. From March 2015, the Defendants were false to the end that the victims of the violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) invested the money in an overseas futures, thereby guaranteeing the principal after three months, and guaranteeing investment returns equivalent to approximately 2.5% per month.

However, the Defendants were thought to use most of the investment funds for the purpose of using the ZB investors and the ZB investors in return of the investment funds.

As above, the Defendants were remitted total of KRW 138,031,00,000 from 2,993 victims, including deceiving the victims.

2. No person who violates the Act on the Regulation of Conducting Fund-Raising Business without obtaining authorization or permission, or making registration or report under Acts and subordinate statutes shall commit any act of raising funds from many and unspecified persons as a business to make payment of the principal in the future or any amount in excess thereof, and receive money under the pretext of deposits, installment savings, installments, deposits, etc.;

Nevertheless, the Defendants violated the said Act by receiving money from investors as described in paragraph 1.

3. An investment advisory business entity or discretionary investment business entity in violation of the Financial Investment Services and Capital Markets Act shall keep and deposit money from investors;