A. Defendants 1) In so determining, the lower court erred by misapprehending the legal principles and mistake of facts against the Defendants’ victim E, T, and X and the Defendants’ fraud against Defendant B victim O, and H. 2) In so doing, the lower court’s punishment against the Defendants (Defendant A: one-year suspended sentence of imprisonment, two-year imprisonment, and two-year imprisonment) is too unreasonable.

B. Prosecutor 1) In order to determine the innocence of part of the fraud against the Defendants and to determine the innocence of Defendant A’s embezzlement, there is an error of misunderstanding the facts. 2) The lower court’s punishment against the Defendants is too uneasible and unreasonable.

2. Judgment on the misunderstanding of facts and misapprehension of legal principles by the Defendants

A. A. Around April 2018 to May 5, 2018, the Defendants’ company operated by the Defendants at the time of transaction with the victims.

D's credit trading limit has been partially reduced, but it was possible to cope with it.

D The N's debt is joint and several sureties and the ability to repay was sufficient.

At the time of the transaction with the victims, there was no problem about the defendants' debt amounting to 6 billion won with the ordinary level of financial institution loans and the business transaction deposit obligations.

The defendants have been engaged in transactions without any problem in the continuous transaction relationship with the victims, and finally, they could not pay or deliver some of the proceeds or the iron bars.

B. Considering the circumstances found in the lower court’s judgment based on the comprehensive review of the evidence, the lower court determined that the Defendants received the payment of the full amount (including the pre-paid payment) from the clients in order to continue the business of D and N after March 2018, when a large-scale distribution business entity, which is a major purchaser of D, reduced the credit transaction limit, or received the full amount of the full amount (including the pre-paid payment) from the clients, and thereby repays the liabilities that had already been incurred, such as credit payment obligations to the purchaser and other obligations to supply the full amount to