A defendant shall be punished by imprisonment for not less than eight months.

However, the execution of the above sentence shall be suspended for a period of two years from the date this judgment becomes final and conclusive.

Punishment of the crime

On March 30, 2017, the Defendant was sentenced to a suspended sentence of one-year imprisonment for fraud, etc. at the Daegu District Court, which became final and conclusive on April 7, 2017.

From around December 2011, the Defendant, along with C, was a person who operated “E” (registration of establishment on December 9, 201) established for the purpose of wholesale and retail business of heating and cooling equipment in Nam-gu, Busan.

1. On December 201, 201, the Defendant stated that “The Defendant would pay 30% interest per annum as a business guaranteed by high profit, and repay the principal of the investment by December 29, 2012, in the office of communications company in the first floor of the victim’s G management based on the underground floor of the F building in Busan Dongdong-gu, Busan, to the effect that “the Defendant would necessarily repay the principal of the investment by December 29, 2012.”

However, in fact, the Defendant was unable to normally carry out the business due to the failure to enter into the supply contract with the pumps and the failure of customers to secure the supply contract at all, and was thought to use the investment money received from the victimized party as the repayment of the existing debt and living expenses, etc. In the end, the Defendant did not intend to pay the principal of the investment normally and to pay the profits.

On December 30, 2011, the Defendant received KRW 30 million from the damaged party, using the Agricultural Cooperative Account (Account Number: H) in the name of the Defendant, for investment funds.

2. On April 2012, the Defendant: (a) at the place indicated in paragraph 1, 2012 as of early April 1, 2012, the Defendant told the said victim G to the effect that “it would immediately enter into a contract for the supply of hump pumps with his business partners, such as official books; and (b) if the business funds are invested more than KRW 50 million necessary for the early demand, 30% interest per annum shall be paid and the principal of the investment shall be repaid until April 15, 2013.”

However, the Defendant was in a situation where he was unable to normally operate the business as above, and invested money from the injured party.