A. Violation of the Act on the Aggravated Punishment, etc. of Specific Crimes (Taxes)

(b) Violation of the Act on Regulation and Punishment of Criminal Proceeds Concealment.

(c) Violation of the National Sports Promotion Act (a gambling place, etc.);

(d) Opening of gambling spaces;

1.(a) A

2.b.(c) d. B

3.2(c) d. C

Red scars (prosecutions) and friendly scars (public trials)

Law Firm Barun (Defendant A and C)

Attorney Lee Jong-ho

Attorney Park In-bok (for the defendant A and C)

Law Firm Hoh (for Defendant A)

Attorney Choi Jong-il

Attorney Or-tae (for the defendant B)

Attorney Yu Young-ho (for the defendant B)

January 24, 2019

[Defendant A]

A person shall be punished by imprisonment with prison labor for not less than three years and by a fine not exceeding 10 billion won, and by imprisonment for not more than six months with prison labor for the crimes of No. 2 and No. 2-B(1) as stated in the judgment of the defendant.

If the defendant fails to pay the above fine, the defendant shall be confined in a workhouse for 1,000 days.

However, with respect to the crime No. 2-A and No. 2-B-1 of the ruling from the date this ruling becomes final and conclusive, for five years, and with respect to the crime No. 2-b in the ruling, the execution of each imprisonment shall be suspended for one year.

The seized 50,00 Won 4,500 (No. 1), 10,00 Won 2,500 (Evidence 2), 500 Hong Kong 165 (Evidence 3), 1,000 Hong Kong 35 (Evidence 4), 200, 200 (Evidence 21), 6 (Evidence 22), 20, 3 (Evidence 23), 50,000), 10, 200 one (Evidence 24), 200, 200, 10, 200, 121 (Evidence 26), 10, 200, 121 (Evidence 26), 25, 42 (Evidence 48), 41 (Evidence 46), and 94 (Evidence 46) shall be confiscated.

[Defendant B and C] Defendants shall be punished by imprisonment with prison labor for one year.

However, the execution of each of the above punishment against the Defendants shall be suspended for two years from the date this judgment became final and conclusive.

To order the Defendants to provide community service for 160 hours each.

The seized 50,00 won (No. 10), 200 knives (No. 18) and knives (No. 18) shall be confiscated from Defendant C.

16,272,170 won from Defendant B, and 5,6740,00 won from Defendant C shall be additionally collected.

Criminal History Office

【Criminal Power】

On July 15, 2015, Defendant A was sentenced to imprisonment with prison labor for a violation of the National Sports Promotion Act (Crime of Gambling and Gambling) at the Seoul Central District Court and three years of suspended execution, and the judgment became final and conclusive on September 25, 2015.

【Criminal Facts】

1. No person, other than the Seoul Olympic Sports Promotion Foundation or an entrusted business entity, shall issue sports betting tickets or similar things (including the issuance by means of information and communications networks) and provide property or property benefits to persons who win the betting results;

Defendant A opened and operated a private sports soil site along with Shipbuilding D. However, even if each of the different domain addresses is accessed through the other domain addresses, Defendant A opened several sites and sub-title domains with the function of managing the members’ gambling status, distribution of profits, etc. according to access domain addresses connected to one site overall overall control, and the access code. The operators of sub-title domains planned to take charge of membership recruitment, and Defendant A planned to take charge of the rest of business other than the recruitment of members, such as management of servers, call center management, and deposit and withdrawal management.

Accordingly, from August 7, 2013 to April 18, 2015, Defendant A established a domain name "U", "V", "W", "W", and "B" on the 3th floor of the building located in the region where the Republic of Korea had 100 square meters wide apartment houses and had telephone machines, etc., and then employed employees, "E (F)," "G (H), IJ", "K (L), "N (O), "N (O), Q (O), and "S", "S" (T), and "S" (T), "S" (W", "W", and "Y2" game money in the name of the member of each unit of the domain, "Y2" game money in the name of the sports bank, and "Y2" game money in the name of the member of the unit of the domain, and received money in the name of the member of the Association, and received money in the name of the company in the name of the member of the Association.

2. Defendant A

(a) Violation of the Aggravated Punishment Act;

Defendant A operated an illegal Internet gambling site at the ratio of 30%, AD, AE, 35%, and other domain names, from August 7, 2013 to April 18, 2015, Defendant A received gambling money from personal gambling workers using the borrowed account as above, while Defendant A received gambling money from his/her personal gambling workers by not reporting and paying it to the competent tax office until July 25, 2014; Defendant A entered KRW 1,498,271,380, and KRW 3,23,237,89, and KRW 399,497, 209, 2013, 200, 2013, 200, 2014, 203, 203,300, 2014, 2014, 304, 2094, 397, 2094, 209, 2014.

(b) Violation of the Act on Regulation and Punishment of Criminal Proceeds Concealment.

1) In collusion with B, C, etc., Defendant A received money from an individual gambling person to a borrowed-name account for the purpose of hiding criminal proceeds acquired in the course of operating the illegal gambling site as above, and transferred the deposited money to a post office account (AG) in the name of “AF,” which is another borrowed-name account.

Accordingly, the defendant pretended about the acquisition and disposition of criminal proceeds.

2) While Defendant A was aware of the method of storage of profits acquired in the course of operating an illegal gambling site, on August 7, 2015, Defendant A entered into a loan agreement at the AH Bank AI point and allocated one credit cooperative, and subsequently, from around that time to January 10, 2018, Defendant A kept KRW 265,929,580 in total, including USD 250,000 in Korean won, USD 117,500 in Hong Kong, and USD 117,500 in Hong Kong, and entered into a loan agreement at the new owner’s shares at the AH Bank New owner’s Bank on March 5, 2017 and allocated one credit cooperative, from around that time to January 10, 2018, the Defendant lawfully concealed the proceeds of crime as property for the most reasonable purpose.

3. Defendant B

(a) Violation of the National Sports Promotion Act and the opening of gambling space;

As above, Defendant B, in collusion with A, A, L, etc., operated “N” among the domain names opened by A from October 2014 to March 2015, and A, L recruited its members. Defendant B, while in charge of the management of earnings, etc., deposited Do money with AM’s bank account (AO) and deposited it with the game money, and deposited it with the game money in the form of money. Defendant B, as a result of various domestic and overseas sports games, such as camping districts, axiss, farming districts, and ices, and the result of the games, such as the “AB (AC) site in Korea and overseas sports community”, was carried out real time at least KRW 500 to KRW 10 million,00,000,000,000 won, and received KRW 1710,000,000,000,000 won after the payment rate set in advance according to the results of the games, was paid to the game money in the form of 17 weeks or 1616.7

As a result, Defendant B, in collusion with A, A, L, etc., provided property or property benefits to persons who were not entrusted business entities of the Seoul Olympic Sports Promotion Foundation by issuing sports betting tickets or similar things and opened a space for gambling for profit.

(b) Violation of the Act on Regulation and Punishment of Criminal Proceeds Concealment.

Defendant B, in collusion with A, AL, etc. in order to conceal criminal proceeds acquired in the course of operating the illegal gambling site as above, the fact that Defendant B received money from the individual gambling person to the next borrowed account and transferred the deposited money to the post office account (AG), etc. in the name of “AF,” which is the next borrowed account, was disguised about the acquisition and disposal of criminal proceeds.

4. Defendant C

(a) Violation of the National Sports Promotion Act and the opening of gambling space;

As above, Defendant C conspired to invite its members from March 2014 to January 2015, Defendant C, while taking charge of the business of inviting its members, was operating the domain name as the result of various domestic and foreign sports games, such as camping districts, stables, deaf-gu and iceki, etc., and the result of the games such as the “AB (AC)”, which are carried out in real time in the domestic sports community site, such as the bridge, fals, and bridge, at least KRW 5,000 to KRW 1,00,000,000,000 won, and, in the event that the game money is exchanged or failed after payment of the dividend rate of the game money as determined in advance according to the results of the game, Defendant C was operated as the above domain name by 964,700,000 won without returning it as the profits of the game.

As a result, Defendant C, in collusion with the Seoul Olympic Sports Promotion Foundation, provided property or property benefits to a person who was not an entrusted business entity of the Seoul Olympic Sports Promotion Foundation by issuing sports betting tickets or similar things, and opened a space for gambling for profit.

(b) Violation of the Act on Regulation and Punishment of Criminal Proceeds Concealment.

Defendant C, in collusion with A, etc., pretended that the acquisition and disposition of criminal proceeds is about the acquisition and disposal of criminal proceeds by receiving the money from personal gamblings to the next borrowed account in order to conceal criminal proceeds acquired in the course of operating the illegal gambling site as above, and by remitting the deposited money to the post office account (AG) in the name of “AF,” which is the next borrowed account.

Summary of Evidence

1. The defendant A's legal statement (the fifth trial date), the defendant B and C's partial legal statement;

1. Legal statement of a witness, AE, AP, and AD;

1. Each prosecutor's interrogation protocol against the Defendants

1. Written accusation and investigation report (the collection of data sent by Busan Regional Tax Office and the arrangement of evaded amount of tax);

1. Two copies of each seizure record and each detailed statement of loans;

1. One copy of the statement of transactions of AL revenue payments, reference to the investigation report (verification of transfers made to B accounts by A), and B-A;

1. Previous conviction: A written inquiry about residents, crimes, and investigation records (No. 28 of the evidence list), A's judgment (Seoul Central District Court Decision 2015No. 2563), and a summary agreement assistant statement of the case (No. 8 of the evidence list);

Application of Statutes

1. Article applicable to criminal facts;

A. Defendant A: Article 8(1)1 and (2) of the former Act on the Aggravated Punishment, etc. of Specific Crimes (Amended by Act No. 14474, Dec. 27, 2016); Article 3(1) of the Punishment of Tax Evaders Act (including that of tax evasion, including that of tax evasion by year); Article 3(1)1 of the Act on the Regulation and Punishment, etc. of Criminal Proceeds Concealment; Article 30 of the Criminal Act (including that of acquisition of criminal proceeds); Article 3(1)3 of the Act on the Regulation and Punishment, etc. of Punishment, etc. of Criminal Proceeds Concealment (including that of concealment, including that of concealment of criminal proceeds)

(b) Defendant B: Article 47 Subparag. 2 and Article 26(1) of the National Sports Promotion Act, Article 30 of the Criminal Act, Articles 247 and 30 of the Criminal Act (including the establishment of gambling spaces), Article 3(1)1 of the Act on Regulation and Punishment of Criminal Proceeds Concealment, and Article 30 of the Criminal Act (including the fact that it is most likely to acquire criminal proceeds, including the fact that it is most likely to obtain criminal proceeds)

(c) Defendant C: Article 47 Subparag. 2 and Article 26(1) of the National Sports Promotion Act, Article 30 of the Criminal Act, Articles 247 and 30 of the Criminal Act, Article 3(1)1 of the Act on Regulation and Punishment of Criminal Proceeds Concealment, Article 30 of the Criminal Act (including the fact that it is most likely to acquire criminal proceeds, including the fact that it is an act similar to the issuance of sports promotion betting tickets);

1. Commercial competition;

Defendant B and C: Articles 40 and 50 of the Criminal Act [Punishments imposed on the crimes of violating the National Sports Promotion Act (Gambling Place, etc.) and the establishment of gambling space, and those of violating the National Sports Promotion Act (Gambling Place, etc.) with more severe punishment];

1. Selection of punishment;

A. Defendant A: Determination of a limited term of punishment and the concurrent imposition of fines for each crime of violation of the Act on the Aggravated Punishment, etc. of Specific Crimes, and the sentence of imprisonment for each crime of violation of the Act on

B. Defendant B and C: Selection of imprisonment with labor

1. Handling concurrent crimes and legal mitigation;

Defendant A: The latter part of Article 37, Articles 39(1) and 55(1)3 and 6 of the Criminal Act [Article 35(1)3 of the Act on the Aggravated Punishment, etc. of Specific Crimes (tax), Violation of the Act on the Regulation and Punishment of Criminal Proceeds Concealment from the Fictitious Acquisition of Criminal Proceeds, and Violation of the National Sports Promotion Act, etc., for which judgment becomes final and conclusive on September

1. Aggravation for concurrent crimes;

(a) Defendant A: The former part of Article 37, Articles 38 (1) 2 and 50 of the Criminal Act [Article 30 of the Act on the Aggravated Punishment, etc. of Specific Crimes (taxes) and Article 38 (1) 2 of the Act on the Aggravated Punishment, etc. of Specific Crimes (Article 38 (1) 2 of the Criminal Act and the Act on the Regulation and Punishment, etc. of Punishment of Criminal Proceeds Concealment from the Fictitious Acquisition of Criminal Proceeds Concealment]; the punishment shall be imposed concurrently by imprisonment with prison labor and fines provided for in the Act on the Aggravated Punishment, etc. of Specific Crimes (Article 20 of the Punishment of Tax Evaders Act does not apply to the restriction on

(b) Defendant B and C: the former part of Article 37, Article 38(1)2, and Article 50 of the Criminal Act (aggravating concurrent crimes with the punishment prescribed for a violation of the National Sports Promotion Act with heavier punishment)

1. Discretionary mitigation;

Defendant A: Regarding the crime under Article 53 and Article 55(1)3 and 6 of the Criminal Act (Article 55(1)3 and 55(1)6 (Article 2(b)1 of the Criminal Act, consideration of the following favorable circumstances among the reasons for sentencing)

1. Detention in a workhouse;

Defendant A: Articles 70(1) and (2), and 69(2) of the Criminal Act

1. Suspension of execution;

A. Defendant A: Article 62(1) and (2) of each Criminal Act (with respect to each imprisonment with prison labor, a fine equivalent to both favorable circumstances and imprisonment with prison labor for the reasons for the following sentencing, and where the Defendant does not pay or pay the amount, the circumstances in which two years and nine months have to be detained in the workhouse shall be taken into account)

B. Defendant B and C: Article 62(1) of each Criminal Code (hereinafter the following circumstances considered as favorable among the reasons for sentencing)

1. Social service order;

Defendant B and C: Article 62-2 of the Criminal Act

1. Number;

(a) Defendant A: Article 8(1)3 of the Act on Regulation and Punishment of Criminal Proceeds Concealment

B. Defendant C: Article 8(1)1 of the Act on Regulation and Punishment of Criminal Proceeds Concealment

1. Additional collection:

Defendant B and C: Article 51(3) and (1) of the National Sports Promotion Act / [Judgment on criminal proceeds and the amount of additional collection]

1. Criminal proceeds and the amount additionally collected against Defendant B;

A. Summary of the defendant and his defense counsel

In relation to the amount of criminal proceeds acquired by Defendant B, the fact that the Defendant received KRW 150,824,670 out of the amount of criminal proceeds is recognized. However, 64,52,50 won from account transfer (i.e., KRW 44,552,500 + Cash KRW 20,000) was received from AL’s profit and delivered to AL, and 37,788,000 won was delivered to A’s order.

B. Determination

Comprehensively taking account of the following facts and circumstances acknowledged by the evidence duly adopted and investigated by this court, Defendant B acquired criminal proceeds equivalent to KRW 116,272,170 (i.e., KRW 150,824,670 - KRW 34,552,50). It is insufficient to recognize that the evidence submitted by the prosecutor alone obtained criminal proceeds exceeding the above amount.

① From November 1, 2014 to March 26, 2015, the Defendant received KRW 150,824,670 from A to his/her mother’s account in the name of his/her own or his/her mother. A prosecutor appears to have claimed additional collection of KRW 150,824,670 based on the details of such remittance.

②) A made a statement at an investigative agency to the effect that a criminal proceeds had been delivered to AL, an accomplice, through the Defendant, through the Defendant. It is recognized that the Defendant wired KRW 44,552,500 from the account under his/her name, mother, and her name from November 2, 2014 to May 26, 2016 to 44,552,500. However, it is difficult to view that the total amount of KRW 10 million transferred on May 14, 2016 and May 26, 2016, which was one year after the completion of the instant crime, was remitted to AL, and that the Defendant distributed the proceeds of the instant crime to AL. Therefore, it is reasonable to deem that the amount to be excluded from the Defendant’s criminal proceeds by delivering it to AL as the account is KRW 34,552,500.

③ Meanwhile, the Defendant sent AL criminal proceeds of KRW 20 million in cash.

7 It is argued that A made a statement to the effect that, at an investigative agency, the Defendant given a cash of at least KRW 100 million to AL (the investigative record 265 pages), and that, at any time, the Defendant, who had been engaged in the conduct of the investigation, has not been fully specified as to when the Defendant was paid a premium of KRW 20 million. In light of these circumstances, the Defendant appears to have received cash from A and delivered it to AL, and there is no objective material to deem that the Defendant collected the amount deposited into the Defendant’s account and delivered it to AL.

④ Although the Defendant alleged that he remitted KRW 37,788,00 to A, Q, R, AS, etc. under A’s instructions, the Defendant has no evidence to support the transfer.

2. Criminal proceeds and the amount additionally collected against Defendant C;

A. Summary of the defendant and his defense counsel

Defendant C is aware of the fact that Defendant C received 11,6740,000 won from the proceeds of crime.

However, KRW 20 million is not the criminal proceeds of the defendant, since the defendant received a remittance to the defendant's parent-friendly account at the request of the defendant A, and withdraws it and then delivers it to A in cash. Thus, the above KRW 20 million is not the criminal proceeds of the defendant.

B. Determination

In light of the following facts and circumstances acknowledged by the evidence duly adopted and investigated by this court, it is insufficient to recognize that the evidence submitted by the prosecutor alone acquired criminal proceeds exceeding KRW 96,740,000. The above criminal proceeds amounting to KRW 96740,000,000,000 and the market value equivalent to KRW 30,000,000,000,000,000 won (=9,6740,000 won), which is recognized by the prosecutor.

- - 10 million won - 30 million won shall be collected from the defendant.

① The Defendant consistently stated from the investigative agency that there was a fact that part of the money deposited in the name of the Defendant upon A’s request by the investigative agency was delivered to A in cash again, and also A also stated that there was a fact that the investigative agency received the money from the Defendant’s account in the name of the Defendant C (i.e., the investigation record 786 pages). Such statement by A is unfavorable

② On November 18, 2014, the Defendant received KRW 40 million in total from A’s borrowed name account to his/her parent account (i.e., 105 pages). From November 19, 2014 to November 202:28, 2014, the Defendant transferred KRW 13 million in the Defendant’s parent-friendly account from November 23:34, 2014 to November 20, 2014; from November 23:34, 2014 to November 20, 202: (i) the amount equivalent to KRW 10 million in the Defendant’s parent-friendly account; and from November 23:28, 2014 to November 20, 2014 to the Defendant’s parent-friendly account; and (ii) the amount equivalent to KRW 10 million in the Defendant’s name from November 19, 2014 to December 14, 2014.

③ The Defendant asserts that, from the night on November 19, 2014 to November 20, 2014, the amount of KRW 20 million was delivered to A, out of the amount withdrawn from a new wall. In light of the statement made by A as seen earlier, it cannot be readily concluded that the Defendant acquired the said KRW 20 million.

Reasons for sentencing

1. Defendant A

(a) The scope of punishment by law;

1) Imprisonment with prison labor: Imprisonment with prison labor for not less than one year and not more than 3 months but not more than 11 years and not more than 2-B(b) as stated in the judgment, with respect to any crime set forth in the judgment No. 2-B and No. 2-1;

2) Fines: From 9,962, 247,192 to 24,905,617,978 won (i) for the evasion of tax in 2014, not less than 2,360,654,640 to not more than 5,901, 636,598 won, and not more than 7,601, 592,552, or not less than 19,03,981,380 won for the evasion of tax in 2015

B. The scope of recommending sentencing criteria according to the application of the sentencing criteria: The crime of Article 2(a) and Article 2(b)(1) of the Decision is related to the violation of the National Sports Promotion Act (Mambling) recorded on the criminal records (Mambling) and the latter part of Article 37 of the Criminal Act, so the sentencing criteria do not apply to the crime of Article 2(b) of the Decision.

(c) Determination of sentence: 6 months of imprisonment with prison labor and 1 year of suspended sentence for the crimes as set forth in the Decision 2-A and 2-B(1) with prison labor for three years, 5 years of suspended sentence, 10 billion won, and 2-B(2) for the crimes as set forth in the Decision;

The crime of this case is deemed to have been committed by the Defendant’s tax evasion by means of using a borrowed account, etc. while operating the gambling site, and is the most and concealed criminal proceeds. The total amount of tax evaded by the Defendant reaches 19 billion won and is not very good. The crime of tax evasion is acknowledged as necessary to cope with the crime of tax evasion, since it disturbs tax order by making it difficult for the State to impose and collect taxes, and causes damage to the tax justice beyond the burden on the general public.

However, the Defendant’s crime of this case was committed at the same time in relation to the concurrent crimes under the latter part of Article 37 of the Criminal Act with the violation of the National Sports Promotion Act (the crime of gambling), etc. for which judgment became final and conclusive. It appears that the Defendant committed the crime of this case in the course of committing the violation of the National Sports Promotion Act (the crime of gambling), etc. rather than the crime of tax evasion itself. At the time the Supreme Court precedents, etc. have not been established, it was difficult to expect that the Defendant would be liable for value-added tax due to the operation of the instant gambling site. Meanwhile, the Defendant did not have any history of punishment for tax crimes. Meanwhile, the Defendant appears to have been punished for the violation of the National Sports Promotion Act (the crime of gambling) in the previous case. However, considering such circumstances in light of the purport of the latter part of Article 37 of the Criminal Act’s crime of concurrent crimes, the Defendant’s share in operating the gambling site and profit-making by the National Tax Service cannot be considered disadvantageous to the Defendant in sentencing of the Defendant’s money and valuables acquired through the National Sports Promotion Act (the above).

In addition to the above circumstances, the punishment as ordered shall be determined in consideration of all the sentencing conditions, such as the defendant's age, character and conduct, intelligence and environment, motive, means and consequence of the crime, and the circumstances after the crime.

2. Defendant B, C

(a) Scope of punishment by law: Imprisonment with prison labor for not less than one month but not more than ten years and not more than six months;

B. Scope of recommending sentencing criteria according to the application of sentencing criteria: The sentencing criteria are not set for a violation of the Act on Regulation and Punishment of Criminal Proceeds Concealment, and the crime of opening gambling spaces and gambling spaces are not applied in the ordinary competition relation, but they are deemed to refer to the sentencing.

1. The National Sports Promotion Act (Gambling, opening, etc.);

【Determination of Types】 Crimes of Private Game Products, Unlawful Sports Gambling, etc., Type 3 (Similar Sports Earth)

[Scope of Recommendation] 8 months to 2 years (Basic Area)

2) Establishment of gambling spaces

[Determination of Punishment] Crimes of Speculative Game Products, Establishment of Gambling Places, etc. (Establishment of Space for Gambling Places)

[Scope of Recommendation] Imprisonment of 8 months to 1 year and 6 months (Basic Area)

C. Determination of sentence: Each one year of imprisonment with prison labor, and each two-year Internet gambling site of suspended execution, are accessible easily by anyone, thereby encouraging the people’s excessive gambling spirit and hindering the awareness of sound labor. Since the Defendants participated in the operation of illegal gambling sites, which have an operating office in a foreign country outside the jurisdiction of the Republic of Korea, the crime is not good. The size of the instant gambling site or the profits of the Defendants are considerable. Such circumstances are disadvantageous to the Defendants.

However, it is difficult to say that the extent of the Defendants’ participation in the crime is more severe than that of accomplices. In the case of Defendant B, the period of the crime is not longer than five months, and there is no criminal history prior to the instant crime. Such circumstance is favorable to the Defendants.

In addition to the punishment of accomplices who were punished first of the above circumstances, all the sentencing conditions, such as the defendants' age, character and conduct, intelligence and environment, motive, means and consequence of the crime, etc., shall be determined as ordered in consideration of all the sentencing conditions.

The presiding judge, the highest judge;

Judges Gin-type money

Judges Shin Jae-ho

1) As seen thereafter, there is no evidence to acknowledge that Defendant B’s criminal proceeds exceed the above amount, and as such, the above revision and recognition of criminal proceeds are recognized.

2) As seen thereafter, there is no evidence to acknowledge that Defendant C’s criminal proceeds exceed the above amount, and as such, the above revision and recognition of criminal proceeds are recognized.

A person shall be appointed.