Defendants shall be punished by a fine of KRW 1,000,000.

The Defendants did not pay each of the above fines.

Punishment of the crime

1. On April 28, 2015, Defendant A was sentenced to a suspended sentence of one year in six months of imprisonment for a crime of fraud at the Goyang Branch of the District Court, and the said judgment became final and conclusive on May 7, 2015.

The defendant is the representative director of E company.

On March 2014, the Defendant knew that the creditor bank applied for an auction on May 28, 2013, with respect to the land and the 4th floor building (hereinafter “the instant building, etc.”) located in G in G and that the auction procedure is in progress at a high-level branch of the district court, the creditor bank applied for an auction on May 28, 2013. Notwithstanding the fact that the Defendant continued to possess the instant building, etc., the Defendant had been aware that he had continuously occupied the instant building, etc., and had the intention to receive his claim by reporting the right of retention to the said auction court.

Accordingly, on March 2014, the Defendant posted the franchise card called “in the course of exercising the right of retention” without occupying the instant building, etc., and around July 24, 2014, the Defendant reported the lien of KRW 336,00,000 to the above court as collateral obligation, and around that time, occupied the office space from F among the above 4th floor buildings on the ground.

Accordingly, the defendant has harmed the fairness of auction by falsely reporting the right of retention in the above voluntary auction procedure.

2. On March 2014, Defendant B knew that the creditor bank applied for an auction on May 28, 2013, with respect to the land and the 4th floor building (hereinafter “the instant building, etc.”) located in G in G, which was owned by F around March 2014, the creditor bank received an auction on May 28, 2013, and that the voluntary auction procedure was in progress at the Jan Government District Court Goyang Branch H., and Defendant B had not been continuously occupied the instant building, etc. despite the fact that the Defendant had not continuously occupied the instant building, etc., the Defendant had been aware that he had continuously occupied the instant building, etc., and had the intention to

Accordingly, the defendant has a right of retention around July 2014.