Defendant

A Imprisonment with prison labor for a year and three months, for a year of imprisonment for a defendant B, and for a two year of imprisonment for a defendant C, respectively.

(b).

Punishment of the crime

Defendant

On September 12, 2013, A was sentenced to a suspended sentence of two years and a fine of 2.5 million won for a year of imprisonment for fraud, etc. at the Seoul Eastern District Court on September 12, 2013, and the above judgment was finalized on November 15, 2013. Defendant B and C were sentenced to a violation of the Punishment of Violences, etc. Act (joint conflict) at the Seoul Western District Court on December 13, 2013. The above judgment became final and conclusive on December 21, 2013.

Three radio operators sell mobile phones to customers through each mobile phone sales store, and pay sales incentives equivalent to KRW 150,00 or KRW 700,000 per unit of an agency and sales store, based on the results of opening the cell phone of an agency and sales store to attract more than one customer. The agency and sales store also pay sales incentives to attract customers through subordinate sales channels in order to secure more customers.

TM business entities, such as H and I (hereinafter “TM business entities”), send text messages to many and unspecified persons to provide loans, and reported such text messages to the persons who reported and contacted the text messages to grant a small amount of subsidies. Around 3 to 5 months, repayment of loans is made in the name of the mobile phone, making changes in the name of the mobile phone, or terminating the mobile phone so that no cost or charge for using the mobile phone is imposed.” In fact, from those who did not intend to use the mobile phone, documents necessary for opening the mobile phone, such as a copy of their identification cards, copies of the passbook, etc., are collected and sold to the intermediary.

1. Defendant A and C’s co-principal offenders C are mutually called J(K).