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

However, the execution of the above punishment shall be suspended for four years from the date this judgment becomes final and conclusive.

Punishment of the crime

[Criminal Power] On June 23, 2016, the defendant was sentenced to a suspended sentence of two years and six months in Seoul Central District Court for fraud.

7.1. The above judgment became final and conclusive.

【Criminal Facts】

The Defendant is a representative director of a company D (hereinafter referred to as “D”) that purchased the Seongbuk-gu Seoul Party B site and promoted a project to newly build and sell apartment units on a 192-household scale (hereinafter referred to as “instant project”) and has engaged in overall business affairs, including financing, fund management, and fund execution.

1. A violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Embezzlement) on the Aggravated Punishment, etc. of Victims E entered into a land trust agreement and land trust business agreement with E Co., Ltd. (hereinafter “E”) on April 14, 2008. The main contents of D are as follows: “D entrusts the site to E and performs the business as the truster and contractor of the instant C project; and E performs the business of executing funds and managing funds as the trustee and the project executor, performing the sale business, and collecting money, etc. as the contractor. D simultaneously transfers all the claim for the refund of value-added tax related to the project to E and immediately notify the assignment of claims to the competent tax office.”

As such, the Defendant transferred the value-added tax refund under a trust contract to E, the Defendant must notify the third obligor of the transfer of the right to claim the refund of value-added tax, and if D receives the refund in lieu of the value-added tax refund, he/she was obligated to immediately return

Nevertheless, the Defendant, without giving notice of the transfer of claims on April 8, 2010, received KRW 251,551,400 from the Dongjak-gu Seoul District Tax Office to the F account (G) in the name of the national tax refund and kept in custody for the victim E, and then withdrawn KRW 21,550,000 on the same day in cash and used it for personal purposes from that time.