A defendant shall be punished by imprisonment for not less than one year and six months.

The defendant shall pay 74,00,000 won to the applicant for compensation by deceit.

3.2

Punishment of the crime

On October 28, 2010, the Defendant was sentenced to three years of imprisonment for fraud, etc. at the Seoul Eastern District Court, and the said judgment became final and conclusive on April 4, 2011.

The defendant is a person who operates D Co., Ltd. established for the purpose of smokinging.

1. On June 30, 2009, the Defendant told the victim C at the D office located in Seocho-gu Seoul, Seocho-gu, Seoul, that “If the Defendant loaned money to the victim C in order to re-satisfe the losses incurred while running a smoking business, the Defendant would have to repay the said money by giving 2.5 interest on one month and raising money.”

However, in fact, the Defendant needs to pay approximately KRW 70 million in order to establish a smoking-free production plant, but there was no money to borrow money, and the equipment cost was paid only to KRW 100 million. Thus, even if the Defendant borrowed money from the victim due to the establishment and operation of the smoking-free production plant within a short time, there was no intention or ability to pay the principal by paying the interest of KRW 2.5 per month.

As such, the Defendant, by deceiving the victim, received from the victim the transfer of KRW 40 million on the same day as the loan money, KRW 30 million on July 2, 2009, KRW 3 million on July 27, 2009, KRW 74 million on July 31, 2009, and KRW 1 million on July 31, 2009, to the post office account in the name of the Defendant’s fatherF.

2. Around September 2009, the Defendant told the victim H of the Defendant’s office located in Gangnam-gu Seoul Metropolitan Government that “The Defendant would give a large amount of profits when investing in the smoking factory operated by the Defendant in the city.”

However, the Defendant was unable to establish and operate a smoking-producing production factory within a short time under paragraph (1) due to the failure to make an investment from the victim, and there was no intention or ability to return the investment money.

Around September 11, 2009, the Defendant, by deceiving the victim, received KRW 87 million from the victim to the post office account in the name of the Defendant’s fatherF under the pretext of investment.