A Imprisonment with prison labor for four years and for three years, respectively.

【Criminal Records】

1. On October 13, 2017, Defendant A was sentenced to imprisonment for one year and six months at the Seoul Central District Court for a violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud), and the judgment became final and conclusive on March 6, 2018.

2. Defendant B was sentenced to one year of imprisonment for fraud, etc. at the Incheon District Court on September 21, 201, and the execution of the sentence was terminated on May 1, 2012. On February 16, 2017, the Incheon District Court sentenced Defendant B to one year and six months of imprisonment for a violation of the Medical Service Act, etc., and the judgment became final and conclusive on July 18, 2017.

[Criminal Facts]

1. Defendants A jointly committed the crime is the secretary general of the Bupyeong-gu Incheon Metropolitan Government Association D (hereinafter “instant Association”) located in Bupyeong-gu and the secretary general of the “F convalescent Hospital” located in the Nowon-gu Incheon Metropolitan Government E (hereinafter “the instant hospital”), and Defendant B is the representative director of the instant Association, who operates the instant hospital.

The Defendants were able to borrow funds due to the shortage of operating funds of the instant hospital, and around March 17, 2015, at the I office of the Jongno-gu Seoul Metropolitan Government (Seoul), the Defendant acquired the instant hospital from the victim on December 19, 2014, and the hospital is well operated.

When lending funds to a hospital, 36% interest will be paid.

The National Health Insurance Corporation made a false statement on the collection of insurance money claims to the National Health Insurance Corporation.

However, in fact, the Defendants already borrowed enormous funds from hospital operation funds and bear the obligations of KRW 2.8 billion in total to J, etc., and on January 26, 2015, the Defendants stated that K acquired the claim for medical expenses from the National Health Insurance Corporation of the instant hospital from January 26, 2015 to the charges of taking over the claim for the medical expenses from the National Health Insurance Corporation by transfer, but the National Health Insurance Corporation’s replys to the National Health Insurance Corporation.