Defendant

A Imprisonment with prison labor for one year, and for two years, each of the defendants B.

Punishment of the crime

Defendant

A was sentenced to eight months of imprisonment for fraud at the Seoul Southern District Court on September 23, 2011, and the appeal and appeal were all dismissed, and the above judgment became final and conclusive.

Defendant

A has been in charge of field management, sale, etc. in Gangnam-gu H Co., Ltd. I (hereinafter the omission of the indication of corporation), and Defendant B has been in charge of overall management, management, etc. while working as I Chairperson.

The Defendants were designed as commercial buildings in the first place as commercial buildings and residential officetels on the 620 square meters of the J site in Sung-si (hereinafter “instant site”) with the I, who is in his/her own business as an executor, and later changed into the commercial buildings and residential officetels buildings.

In order to promote a business (hereinafter “the instant business”) that constructs a new aggregate building consisting of 43 units, and sells each unit (hereinafter “the instant aggregate building”) and to purchase the said site, and to prepare intermediate payments and balance, I as parties to the contract and received loans of KRW 2.8 billion from the so-called “PF Savings Bank” (hereinafter “TF Savings Bank”) around October 31, 2006.

The Defendants entered into a real estate security trust agreement (hereinafter “instant real estate security trust agreement”) on the instant site with Korea Land Trust Co., Ltd. (hereinafter “Korea Land Trust”) (hereinafter “Korea Land Trust”) on November 3, 2006, taking I as the parties to the said business loan, and concluded a real estate trust agreement on November 3, 2006 as the first beneficial interest holder (the profit amount of KRW 3.64 billion).

On November 6, 2006, the land trust for the above site made a registration of ownership transfer on the ground of the above trust contract in the future.

In addition, according to the above trust contract, I shall make all the above loans to the Suhyup Savings Bank at the time of completion of the condominium building in this case.