Defendant

A Imprisonment with prison labor for three years and for two years, respectively.

Punishment of the crime

Defendant

A In constructing apartment houses of the D Regional Housing Association (24,310 square meters, 553 households) in ASEAN-si, A was practically operating the E Co., Ltd. (hereinafter “E”), an agent, and Defendant B was the representative of the Committee for Promotion of Regional Housing Association and the president of the Regional Housing Association (hereinafter “the instant association”) from November 2014 to May 27, 2017.

On September 3, 2014, the instant association entered into a PM management service contract with E around September 27, 2014 on the commencement of the promoters’ competitions of the regional housing association, and E performed all practical affairs on the overall implementation of the regional housing association, including the administrative affairs related to the purchase of land, recruitment of members, authorization and permission, etc., and the business affairs related to the selection of collaborative enterprises, according to the above service contract.

Around November 5, 2014, the instant association and E entered into a business agreement with the FF stock company scheduled for construction. Around November 13, 2014, G stock company (hereinafter “G”) and its members entered into a contract on behalf of fund management, including the opening and keeping of a fund management account for the receipt of down payment, business agency fees, contributions to association members, etc. After opening a public relations center around December 5, 2014, they entered into a contract on business with H stock company by changing the scheduled intention of construction around May 22, 2015, and continuously conducting the inaugural general meeting of the association around September 18, 2015, and obtained authorization from the regional housing association on October 13, 2015, and obtained authorization from the regional housing association on September 16, 2016.

As above, the Defendants recruited members of at least 50% of the total scheduled number of households in order to withdraw and use the money paid by the members of G from the funds management agency agreement entered into with G, and applied for new membership from August 2015.