Attorney C, D, and E

However, the execution of the above punishment shall be suspended for three years from the date this judgment became final and conclusive.

To order the accused to provide community service for 240 hours of welfare facilities and group service activities.

As the representative director of FF Co., Ltd. (hereinafter referred to as the "F"), the defendant has overall control over the affairs such as the receipt of orders for research and development projects and the management of funds of the above company.The sports R&D supported by the Seoul Olympic Sports Promotion Foundation (hereinafter referred to as the "Korea Sports Promotion Foundation"); the agency in charge of research and development projects or an institution selected as an entrusted research institute shall use the research and development funds subsidized by the Korea Sports Promotion Foundation only for the purposes necessary for the purposes specified in the research and development plan, and shall not be used for other purposes, and the annual settlement shall be reported within 15 days from the completion date of the technology development project, and the settlement for the last year shall be reported on the actual use results of research and development expenses within one month, and

F entered into an agreement on research and development R&D on July 1, 2012 and 'G' sports R&D; research and development projects (the research period from July 1, 2012 to June 30, 2015; hereinafter referred to as "research and development projects of this case") (the total manager of the research and development projects of this case is the F, the 1 detailed tasks (G) are the Defendant of the F, the 2 specific tasks (H), and the 3 specific tasks (K) are conducted respectively under the supervision of the university (the research manager J), and the extension of the development period of the National Sports Promotion Foundation of this case on July 13, 2015 (approval until September 30, 2015)).

The defendant, when receiving research and development expenses from the Korea Sports Promotion Foundation in accordance with the above Convention, has been used for the purpose of business stipulated in the research and development plan, but has not been used for any other purpose.

Accordingly, the Defendant, at the office of the Korea Sports Promotion Foundation located in Songpa-gu Seoul Olympic Games on July 1, 2012, applied for the payment of research and development expenses related to the research and development of this case to the Victim Sports Promotion Foundation on August 23, 2012, and received 600 million won from the victim as the research and development expenses of this case on October 31, 2012, and paid 18,700,000 won as the transaction price of parts unrelated to N on October 31, 2012.

In addition, from around that time to June 2015, the Defendant received 3 billion won of the instant research and development expenses by deceiving the victim as indicated in the attached list 1 to 4, and by suggesting the payment of the transaction cost, such as personnel expenses and parts unrelated to research and development or the false transaction cost, etc. (i.e., KRW 60 million on August 23, 2012; KRW 13.4 billion on December 13, 2012; KRW 14 and 60 million on August 14, 2013; KRW 12 and 27.4 billion on August 24, 2013; KRW 5 billion on September 25, 2014; KRW 40 million on December 30, 2014; and acquired KRW 923,232,733, out of that amount.

Summary of Evidence

1. Defendant's legal statement;

1. Each prosecutor's protocol of statement of the prosecution with respect to 0, P, Q, R, S, T, U, V, X, Y, and Z (the first time), P, AA, and S, each prosecutor's protocol of statement of the prosecution with respect to P, A, and S (the second time);

1. AB's statement;

1. An investigation report [the confirmation of the additional fraud of direct expenses (total amount of KRW 547,474,067), investigation report (type of false tax invoices between the F and Brexcell), investigation report [the confirmation of the usefulness of research funds related to audio brand AC unrelated to research tasks], investigation report [the confirmation of the identity of research funds], investigation report [the confirmation of the details of personnel expenses (including false) paid by the F as research and development expenses, investigation report (the additional confirmation of the purchase of audio brand AC and purchase of KRW 32,482,80)];

Application of Statutes

1. Article relevant to the facts constituting an offense and the selection of punishment;

Article 3(1)2 of the former Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Amended by Act No. 13719, Jan. 6, 2016); Article 347(1) of the Criminal Act (generality)

1. Discretionary mitigation;

Articles 53 and 55 (1) 3 of the Criminal Act (contributable circumstances in favor of the reasons for sentencing to be considered in the rear)

1. Suspension of execution;

Article 62(1) of the Criminal Act (Consideration favorable circumstances among the grounds for sentencing to be considered in the rear)

1. Social service order;

Article 62-2 of the Criminal Act

1. The grounds for sentencing: Imprisonment with prison labor for not less than one year and not more than six months but not more than 15 years;

2. Scope of recommendations;

[Determination of Punishment] General Fraud. Type 3 (at least 500 million won, less than 5 billion won)

[Special Mitigation] Reduction element: In a case where the wife or a considerable part of the damage has been recovered;

[Determination on the recommended Area] Reduction

[Scope of Recommendation] Imprisonment with prison labor for not less than one year and six months but not more than four years;

3. Determination of sentence: Two years of imprisonment and three years of suspended sentence;

The Defendant’s intent to spend part of the money received as research and development expenses for the purpose unrelated to the instant research and development project and deceiving the victim to acquire approximately KRW 900 million by deceiving the victim, and thus, cannot be deemed to be less than that of the crime.

However, the Defendant recognized his criminal act and deposited the full amount of the damage with reflectment. The Defendant had no record of criminal punishment prior to the instant crime. The instant research and development project was assessed as successful as a result of the evaluation by the final Evaluation Committee of the Korea Development Foundation. This is the favorable circumstances for the Defendant.

In addition, the sentence shall be determined as ordered in consideration of all the sentencing conditions shown in the pleadings of this case, such as the defendant's age, character and conduct, environment, family relationship, circumstances after the crime, etc., and the execution of the sentence shall be suspended only once on the condition that the community service order is faithfully observed.

It is so decided as per Disposition for the above reasons.

Judges Yang Sung-sung

South Korean Republic of Korea