A. The Defendant had tried to establish and operate a machine manufacturing plant, etc. over several occasions between around 1992 and around 2008, but had failed to perform all the projects and had no special occupation. Around October 2008, the Defendant was in a situation in which it was economically difficult to obtain a loan of KRW 150 million from a financial institution and was registered as a bad credit holder.

B. Around May 2009, the Defendant against the victim C made a false statement that “The victim C will receive a loan from a national bank to pay a small and medium enterprise fostering funds within 15 days from the completion of the construction work, with the construction cost of KRW 1220,140,000,000 in the construction cost in order to build (ju) a new construction site of the Gangwon-gu Seoul Metropolitan City Factory located in D, Gangwon-gun, Gangwon-do.”

However, the Defendant did not have the ability to pay construction price to the victim because of such economic difficulties as above, and at the time, the Defendant was not confirmed to receive support funds for small and medium enterprises, such as not receiving consultation on actual loans from the National Bank about whether to grant support funds for small and medium enterprises. Even if the decision to grant support funds was made from Gangwon-do, a real inspection by financial institutions is conducted, and the above land has already been given a loan, and there was no real security value, such as the establishment of a collateral security right of the maximum debt amount of KRW 130 million.

The Defendant made the victim’s false statement, and caused the victim to perform civil engineering works equivalent to KRW 104,382,00,000, and paid only the construction cost of KRW 20,200,000, and acquired pecuniary profits equivalent to KRW 84,182,00, which is the difference.

C. On July 3, 2009, the Defendant against the victim E is the Defendant F of the Gangwon Military Service around July 3, 2009.