The Defendants’ appeal is dismissed.

All applications filed by applicants for compensation shall be dismissed.

1. Summary of grounds for appeal;

A. Defendant A1) misunderstanding of the facts or misunderstanding of the legal principles (as to fraud), W (hereinafter “W”) confirmed that it is a private equity fund investment company registered in Switzerland, and its substance is clear. Defendant A was aware of W through the Switzerland’s headquarters website and relevant site, etc., and made an investment in W due to the creation of trust by the persons related to W headquarters such as AF, etc.

Accordingly, Defendant A did not have any intention to obtain fraud, since Defendant A did not fully believe the horses of W head office and did not fully recognize the fact that W’s solicitation of investment funds constitutes deception.

2) The lower court’s punishment (five years of imprisonment) against Defendant A who is unfair in sentencing is too unreasonable.

B. Defendant C1) misunderstanding of the facts or misunderstanding of the legal principles (with respect to fraud), Defendant C recruited W investors in trust in the horses of W head office, and did not have any intent to commit fraud, and did not acquire pecuniary gain.

2) In light of the degree of participation in the crime, Defendant C’s punishment (five years of imprisonment) against Defendant C is too unreasonable, considering the degree of participation in the crime, it is unreasonable that Defendant C’s punishment is too unreasonable.

2. Judgment on the Defendants’ misunderstanding of facts or misapprehension of legal principles

A. The facts charged in this part of the indictment [the fraud] in collusion with the Defendants to receive W Investment Money as the center of WD branch offices of Korea on November 1, 2017, while explaining W as stated in the facts charged in the judgment of the court below, the victim AE as of November 1, 2017, “When investing in W, it shall pay a certain amount of profit each week and return the principal after one year.

The purpose of this paper was that earnings are continuously coming well, and that W is many people who become father due to W.

However, the Defendants believe that, without any due diligence or verification as to the substance of W’s business, only the remarks of the name influor (a Chinese, a single name “AF”) who is the employee of W Switzerland headquarters.