Defendants shall be punished by imprisonment for not more than two months.

Punishment of the crime

around August 12, 2010, Defendant B was sentenced to four years of imprisonment for fraud, etc. at the Seoul Western District Court, and the judgment became final and conclusive around August 20, 2010. Defendant A appealed with one year of imprisonment for fraud, etc. at the Seoul Western District Court on March 18, 2010, but the appeal was dismissed around August 12, 2010 and the judgment became final and conclusive around August 20, 2010.

Criminal facts

Defendant

A is the representative director of D Co., Ltd. and Defendant B are the representative director of E Co., Ltd.

around March 2008, the Defendants, along with F and G, conspiredd to receive investment funds from VIP customers entering the Gangnam-gu Seoul Metropolitan Government D Office by means of pretending to lend money and promising to promise high-quality profits from the lending of money from the VIP customers, while F is a business fund, Defendant B and G are recruited investors, and Defendant A shared the role of inducing investors as the representative director of the company.

On July 16, 2008, the Defendants made a false statement with F and G stating, “The Defendants may pay a large amount of profits from lending money to the victims and other persons, including the victim I. It would be 15% interest per month on the investment in our company, and the principal will be returned in full after three months.”

However, it was unclear whether a business that borrows gambling money and received interest is able to pay high-income taxes, and in fact, it is inevitable to pay the profits promised to the existing investors with the amount of investments made later. Therefore, unless the investor continues to bring into Korea, there was no intention or ability to pay the principal and interest promised to the victim.

Defendants, F, and G received from the victim KRW 10 million on the same day, KRW 20 million on August 4, 2008, KRW 50 million on August 13, 2008, and KRW 10 million on August 18, 2008.

Accordingly, the Defendants are F and G.