A Imprisonment with prison labor of two years and six months, and Defendant B shall be punished by imprisonment with prison labor of two years.

[Criminal Power] On June 17, 2011, Defendant A was sentenced to imprisonment with prison labor for six months at the Seoul Central District Court for fraud, and the said judgment became final and conclusive on the 25th of the same month.

【Criminal Facts】

Defendant

A operates entertainment establishments with the trade name "I" on the 12th and 13th floor of the H hotel in Seoul.

As the J has caused approximately KRW 600 million to a company, it was proposed that Defendant B and the K president of the J company would receive loans from Defendant B, who operated the said entertainment business with a repayment pressure, and would jointly operate entertainment taverns with the remainder of loans. Accordingly, the Defendants agreed to the above proposal and agreed to operate entertainment taverns in Gangnam-gu Seoul as “I” (hereinafter referred to as “I”).

In the process, when the Defendants came to know of the fact that a special loan for entertainment establishments (titleing loan; hereinafter “masting loan”) is made if they submit the documents of pre-paid loan (titleing loan) to the operators of entertainment establishments in Gangnam's entertainment establishments, such as Macro and contact loan, in the nature of collateral, the Defendants offered a loan to the employees of entertainment establishments in Gangnam in the form of collateral. The Defendants decided to resolve the shortage of financing through the method, and the pre-paid loan document equivalent to 150% of the loan required at the time of applying for Macing loan was offered to the employees who did not pre-paid loan in the name of P as if they were the employees of the business operators of the entertainment establishments, who were registered in the name of the business operators of the N Savings Bank, to obtain the loan by applying for the loan in the name of the N Savings Bank loan manager.

In spite of the absence of the intent or ability to provide the pre-paid payment amounting to approximately 150% of the loans required at the time of applying for Malking loan as a security character, the defendants are willing to pay the loans.