A In four years of imprisonment, the defendant B is each fraud described in the [Attachment B] Nos. 1 to 1156.

On November 26, 2014, Defendant B was sentenced to two years of suspension of the execution of imprisonment for one year for fraud, etc. at the Suwon District Court on December 4, 2014, and the judgment became final and conclusive on December 4, 2014.

【Criminal Facts】

Defendant

A around July 30, 2014, around 30, the president of the “stock company C” in the fourth floor of the YG building in the Seoul Special Metropolitan City, the actual operator, Defendant B, the director in charge of marketing, H is the person working as the person in charge of computer scambling, and C is a similar financial company that is the most similar to the sale of cosmetics and household products, and the corporation that Defendant A established as the representative director.

1. Joint crimes committed by the Defendants

A. The facts of fraud are: (a) a stock company is selling cosmetics and health food in appearance; (b) although there is no specific business plan or capital in fact without any other profit-making business; and (c) it operates in a manner of receiving investors’ investments from investors and returning them to investors in the first place as earnings; (d) the above company could not seek an unlimited investor; and (e) if it is no longer possible for investors to raise more investors, it is impossible for investors to make a payment of profits; and (e) the investors later would not have any intention or ability to pay profits promised to receive investments from others; (b) the investment funds received by the above method should be paid as profits; (c) thus, it is not a structure that can be used as funds for sale, such as cosmetics and health food.

Nevertheless, the Defendants, along with H, pay money for the purpose of investment by advertising cosmetic sales business as if they would pay profits. Defendant A goes through 30 branches nationwide, such as Seoul, Busan, Daejeon, and Daegu, to attract investors and explain the direct business. Defendant B, at the above point, receives profits from the cosmetic’s business.