All of the appeals by prosecutors are dismissed.

Summary of Grounds for Appeal

The deception as a requirement for fraud refers to all affirmative and passive acts that widely lack the fiduciary duty and good faith to each other in property transaction. Considering the fact that the defendants' deceptions developed by the defendants against the victims (1) is used for an innovative new technology that goes beyond the rules of energy in the second year's effort and about 2 billion won's research and development expenses, and (2) can reduce electricity rates of about 30 to 40% compared to the existing electric boiler, and water inside the boiler is restored to the environment-friendly product, which is restored to the boiler due to a shock, and has a sterilization effect, and (3) can receive technical cooperation by entering the boiler of all levels, and (4) the above boiler's name was 20 years old, and it was said that the defendants can obtain a large amount of profits if the entire sales contract was concluded, the judgment of the court below erred by misapprehending the legal principles on the facts charged in this case, which affected the conclusion of the judgment.

2. Determination

A. The summary of the facts charged is that Defendant A is the representative director of Company E, and Defendant B’s standing director.

From August 2009 to January 201, 2010, the Defendants developed “M”, which is a boiler with which the world is able to grow by using a innovative new technology, which goes beyond the law of energy in the 2-year effort and research and development costs of approximately KRW 2 billion in our company, in the above office of the company located in the F building 302 of Gangseo-gu Seoul Metropolitan Government.

This boiler can reduce the electricity fee of 30 to 40% compared to the existing boiler and also reduce eco-friendly products inside the boiler.