2. The costs of appeal shall be borne by the Defendant.

3. By means of the reduction of claims in the trial.

A. C and D’s multi-level fraud 1) Joint Defendant C in the first instance trial (hereinafter “C”).

) From around 2004 to around September 2007, when a company among the above companies was investigated or closed down from September 2007 to November 2008, the company established I and P, F, and E respectively in the Busan metropolitan area for the purpose of continuing to operate its organization through other companies (hereinafter collectively referred to as “E, etc.”). The company established P, F, and E in the Daegu metropolitan area for the purpose of continuing to operate its organization through other companies (hereinafter collectively referred to as “company I, I, G, H, P, F, F, and E”).

2) D as the head office of the headquarters planning office of E, etc., performed the tasks such as education schedule management of E, etc., management of contract-related documents, etc. as well as education schedule management of affiliated centers including E, etc.

3) D, in collusion with C, etc., provides the following explanation in collusion with D, either directly or through the agency recruitment plans under its jurisdiction, including E, from October 2007, only the Plaintiffs (appointed parties) and the designated parties (hereinafter “Plaintiffs”).

A) A number of victims, including B, including the victims, made investments in E, etc. In the event of an enterpriser who is a salesman, the head of division may raise the sales performance of more than 30 units and the conditions of their purchase records, on the condition that the head of division shall have 40 units or more of total 80 units and 13 units of their purchase records, on the condition that the head of the division shall have 140 units or more of total 280 units or more, and the head of the division shall have 140 units or more of total 280 units or more after becoming a business operator.