2015 Height 1386 Occupational Embezzlement, Fraud, Violation of the Subsidy Management Act

A

Kim Jong-ho (prosecutions) and Seo-hee (Trial)

Law Firm B

Attorney C

October 22, 2015

A defendant shall be punished by imprisonment for not less than two years and six months.

Criminal facts

The Defendant, from around February 2005, was appointed as the president of the D Federation, E Federation from around February 2010, and the G branches of the F Federation from around February 2012, and was engaged in the overall tasks of controlling the overall operation of each merchant’s association, such as finance.

1. Embezzlements of H-related development funds;

A. On February 2012, in the vicinity of the Changwon-si, the Defendant agreed to enter into a mutual agreement between the JJ and the said three merchants’ associations in order to enter into a mutual agreement with the neighboring three traditional markets in the process of moving into the H branches, and (i) to enter into the said agreement in the capacity of the president of the E Federation, (ii) to participate in the said negotiation and (iii) to pay KRW 950 million as the development fund to the said three merchants’ associations.

On May 15, 2012, the Defendant transferred 950 million won from the JJ to the Gyeongnam Bank account (Account Number:0) opened in the name of the Association of Victims E, which was established in the name of the said three merchants' associations, from May 15, 2012, to the said three merchants' associations, distributed the said money to the Chairperson of the said three merchants' associations, and received 45 million won from the Chairperson of the said three merchants' associations in the name of the Victim Development Fund, and then remitted 10 million won from the said three merchants' associations to the account (Account Number: P) opened in the name of the Defendant for the purpose of personal consumption, such as living expenses, etc., from the Changwon branch around that time to June 11 of the same year, and then arbitrarily consumed KRW 449,900,00 for the personal consumption of KRW 5 times in total, as shown in the attached Table of Crimes (1).

Ultimately, the Defendant embezzled 44,900,000 won of the development fund kept on duty for the victim as above.

B. Around March 2012, the Defendant entered into a mutually beneficial agreement with the Korean Federation of Victims E, separately from the fact that the Defendant entered into a mutually beneficial agreement with three traditional markets merchants’ associations as seen above, and entered into a mutually beneficial agreement with the said Federation to pay the victim KRW 450 million in the name of the development fund.

On June 15, 2012, the Defendant voluntarily consumed KRW 460,645,375 (including KRW 10,645,375) in total on 29 occasions, as shown in the separate sheet of crime (2) from around that time to January 27, 2015, in total, 460,645,375 (including a deposit interest of KRW 10,645,375) in personal use, while he/she was transferred from the JJ to the another bank account (Account Number:0) opened in the name of the victim and was in the course of business for the victim, and transferred KRW 50,00,00 to the account (Account Number:0) opened in the name of the victim.

Ultimately, the Defendant embezzled KRW 460,645,375 on behalf of the victim as above.

2. The Defendant’s embezzlement of subsidies related to the publication of Q Q’s newspaper received subsidies related to R business from May 2013 to February 2014, the F Federation G branch of an incorporated association, the president of which was working as the president, from around May 2013 to around 2014.

R Subsidies shall be used only for the expenses related to the production of the newsletter in accordance with the Ordinance on the Management of Subsidies for Gyeongnam-do, and shall not be used for any other purpose.

On the other hand, in the implementation of the above subsidies that were first subsidized to the G Branch of the FF Federation, the Defendant deducteds the subsidies by submitting a document for the settlement of subsidies, along with a false statement of transactions or a statement of money, in which excessive personnel expenses are appropriated, and sentenced to the use of the subsidies for personal purposes, such as personal debt repayment, or operating expenses of the FF Federation.

Around May 31, 2013, the Defendant: (a) transferred KRW 31 million to the Gyeongnam Bank account (Account Number) opened in the name of the Defendant’s individual account in the name of the Defendant at the office of the F Federation G branch office of Changwon-si, Changwon-si; (b) transferred KRW 4,300,000 to the account in the name of the representative U.S.; and (c) voluntarily received KRW 2,359,500,000 from the victim to the account in the name of the Defendant’s individual account in the name of the Defendant’s individual account; and (d) returned KRW 4,30,000 to the account in the name of the Defendant’s individual account in the name of the Defendant’s individual account; and (e) returned KRW 2,350,000 to the Plaintiff’s account in the name of the Defendant’s individual account; and (e) voluntarily received KRW 300,000,0000 from the Defendant’s individual account from 27:31.

As above, the Defendant embezzled KRW 27,230,100 of the subsidies kept on duty for the victim.

3. The Defendant obtained subsidies related to V business-related fraud (Fraud) through the E Federation from October 201 to December 2013, 201, with subsidies for personnel expenses related to V business through the E Federation from around October 201 to around December 2013.

In the case of the V personnel expenses subsidy, it shall be used only for personnel expenses for those who work in the delivery helper in accordance with the Ordinance on the Management of Subsidies in the Gyeongnam-do and Changwon-si, and shall not be used for any other purpose.

On the other hand, when the Defendant was able to receive subsidies for personnel expenses from the above V businesses, the Defendant submitted a false application for the employment program of delivery helpers and a request for subsidies by manipulating the work record book, etc., and attempted to pay the subsidized personnel expenses to those who worked in the merchant federation operated by the Defendant, not the actual delivery helpers.

On November 2, 2011, the Defendant: (a) at the D Federation’s office located in Changwon-si N, Changwon-si, the Defendant: (b) operated the work log book as if the X in charge of cleaning the office at D Federation without actual delivery helper; and (c) submitted a false delivery helper job application and a request for subsidies to the Changwon-si; and (d) received KRW 1,976,000 from the employees in charge of the Defendant transferred the amount of KRW 1,97,00 from around November 8, 201 to the Gyeongnam Bank account (Z) in the name of the D Federation as personnel expenses, and received KRW 29,410,000 in total over 15 times from around that time to December 27, 2013, as shown in the attached Form of Crimes (4).

After all, the Defendant acquired 29,410,000 won of the delivery helper subsidies as above.

4. The Minister of Agriculture, Food and Rural Affairs has received subsidies for personnel expenses related to AA projects from July 2014 to December 2014 from the date when the defendant acquired the subsidies related to AA projects (violation of the Act on Fraud and Subsidy Management) by the Korea Micro Enterprise and Market Promotion Corporation from July 2014 to December 2014. The subsidies from the Small Enterprise and Market Promotion Corporation shall be regarded as the State subsidies pursuant to Article 2 of the Subsidy Management Act, and the subsidies for AA projects shall be used only for personnel expenses for the introduction of news reports and delivery services in accordance with the guidelines and regulations on the operation of the AA project by the Small Enterprise and Market Promotion Corporation, and shall not be granted subsidies by fraudulent or other illegal means

On the other hand, when the Defendant was able to receive subsidies related to the above AA business, the Defendant applied for subsidies even though he did not intend to employ the actual delivery helper, and failed to pay the personnel expenses of those who worked in the merchant federation office operated by the Defendant by submitting settlement documents by manipulating the work record, etc. as above.

around May 14, 2014, the Defendant submitted a false AAA project application stating that he/she would employ delivery delivery post to the victim and would work in the Y market at the D Federation's office located in Changwon-si N, Changwon-si, and that there was no intention to work as AB, AC, and AD had been working as delivery post, and even though he/she was in charge of other duties at the D Federation's office, he/she received national subsidies of KRW 19,710,000 in total from the employee in charge of the victim around July 11, 201 of the same year and KRW 16,425,000 in total from the employee in charge of the victim around December 31, 201 of the same year, and KRW 3,285,000 in the name of the said D Bank account (AE) opened in the name of the said D Federation.

After that, on July 30, 200 of the same year, the Defendant, at the office of the above D Association, fabricated a false work record as if AB had worked as delivery delivery post, submitted it to the victim along with the payment statement, etc., along with the payment statement, and paid KRW 1,152,00 to AB as personnel expenses. From around that time to December 31, 2014, the Defendant paid the national subsidy of KRW 19,710,000 in total by the same method over 18 times, such as the attached crime list (5) in the same manner as in attached Form 18 times from that time to December 31, 2014.

Ultimately, the Defendant, as seen above, by deceiving the victim, received a total of KRW 19,710,000 from the victim’s AA business subsidies, and received the total of KRW 19,710,000 from the victim, and received the national subsidies in an unlawful manner.

Summary of Evidence

1. Partial statement of the defendant;

1. Each legal statement of witness AF and AG;

1. Partial statement of the witness AD;

1. Partial statements of each prosecutor's office or police interrogation protocol of the accused;

1. Each police record statement of each police officer with respect to AG, AH, AI, AJ, AK, AL, AM, X, AC, N, AF, AD, W, AB, and AP;

1. A Qua written statement;

1. Each protocol of seizure;

1. Tax invoice;

1. An investigation report (a accompanying report to be submitted by a reporter);

1. Investigation reports (report accompanied by municipal ordinances related to collaborative cooperation plans);

1. Reporting on investigation (report on the execution of a warrant of search and seizure);

1. An investigation report (report on ascertaining the current status of traditional markets related to the subsidies for win-win cooperation);

1. A criminal investigation report (a accompanying report, such as details ofT transactions and current status of funds);

1. An investigation report (report accompanied by a business plan for win-win cooperation);

1. Investigation report (report on ascertaining the current status of subsidies from the Federation of Merchants and subsidies for personnel expenses);

1. Investigation report (report attached to the current status of payment of personnel expenses for individuals belonging to the federation of merchants);

1. An investigation report (a report accompanied by guidelines for operating the AA project);

1. A report on investigation (report accompanied by details of account transactions, etc.);

1. An investigation report (specific report on the embezzlement of Q newspapers and delivery helpers, and fraud amount);

1. Application of Acts and subordinate statutes on the settlement of subsidies;

1. Article applicable to criminal facts;

Articles 356 and 355(1) of each Criminal Code (the point of each occupational embezzlement), Article 347(1) of each Criminal Code (the point of each fraud), Article 40 of the Subsidy Management Act (the point of receiving subsidies in an unlawful manner)

1. Commercial competition;

Articles 40 and 50 of the Criminal Act

1. Selection of punishment;

Each Imprisonment Selection

1. Aggravation of concurrent crimes;

Article 37 (former part), Article 38 (1) 2, and Article 50 (Reasons for Sentencing) of the Criminal Act

○ 1 Crime (Embezzlement and Breach of Trust)

[Extent of Recommendation] Type 3 (50 million won to less than 5 billion won) basic area (1 year to April 5)

* descriptive criteria: 1-stage increase as a result of the combination of classes;

[Special Convictd Persons] No. 20 Crimes (Fraud)

[Extent of Recommendation] General Fraud Type 1 (less than 100 million won)

【Special Convicted Person】

○ The scope of final sentence due to the aggravation of multiple offenses: April 1 to September 5:

In light of the general circumstances that take into account: The fact that there is a high possibility of criticism as a matter of embezzlement of development funds and subsidies that should be used transparently for local merchants by taking advantage of the position of the president of the merchant federation, or by taking advantage of the false name, or by obtaining subsidies from public organizations, such as local governments, such as local governments, on the ground that they receive subsidies; approximately KRW 50 million of the embezzlement amount of H-related development funds; KRW 27 million of the embezzlement amount of subsidies related to the issuance of a newspaper for Qu; approximately KRW 29 million of the fraud amount of subsidies related to V business; approximately KRW 19 million of the fraud amount of subsidies related to AA business; and most of the embezzlement amount and the fraud amount

- favorable circumstances: The president of the DDR, E federation, and G branch associations of the FF federation has made efforts to revitalize local commercial buildings and to protect and foster traditional markets; substantial part of the embezzlement and the fraud amount is seen to have been used as expenses for activities as the president of the federation of merchants and personnel expenses for the employees of the federation of merchants; approximately KRW 27 million of the embezzled amount of subsidies related to the issuance of the subsidies related to Q's newspaper was returned to the victim; and the president of the local merchants' association, a member of the E federation of victims, wanting to take the front place.

0 Determination of sentence: Imprisonment for a term of two years and six months;

Judges Yellow Major