[Criminal Power] On July 18, 2018, the Defendant was sentenced to two years and six months of imprisonment for fraud, etc. at the Ulsan District Court, which became final and conclusive on December 8, 2018.

【Criminal Facts】

The Defendant is a representative of C Co., Ltd. (hereinafter referred to as “C”) and D (hereinafter referred to as “D”) that conduct a business such as collecting investment funds from a large number of unspecified investors to invest in a P2P investment business (hereinafter referred to as “B”), B, etc., and lending such investment funds to a construction business entity.

In the process of constructing multi-household housing and officetels on the land owned by Defendant D around June 2017, the Defendant: (a) obtained a loan of KRW 100 million from C, a victimized company, through B; (b) transferred Jung-gu, Ulsan, where D was newly built in lieu of land purchase and sale, to E; and (c) transferred to E multi-household F multi-household housing in Ulsan-gu, where D was newly built in lieu of land purchase and sale.

7.3. Around the same day, E completed the registration of ownership transfer for D in the middle-gu, Ulsan-gu, Ulsan-si, and at the same time completed the registration of ownership transfer for D with respect to the above H in order to secure the above 100 million won obligation to the victimized company, the registration of creation of a mortgage for the above H in the future of the victimized company.

The Defendant, as the representative of the victimized company, was in violation of the duty to thoroughly manage the assets of the victimized company by maintaining collateral for the recovery of the claims held by the victimized company. On November 22, 2017, the Defendant entered into a contract on the transfer of the above KRW 100 million claim and the right to collateral security held by the victimized company with K separately liable for the obligation to K. On the 27th day of the same month, the Defendant had the said certified judicial scrivener completed the registration of the transfer of collateral security in the Ulsan District Court, thereby having K gain property interest.