A defendant shall be punished by imprisonment for four months.

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

Punishment of the crime

On October 19, 2017, the Defendant was sentenced to imprisonment with prison labor and two years and six months in the Daegu District Court for fraud, etc., and the said judgment became final and conclusive on May 2, 2018.

The Defendant is the head of the Gwangju Center of the “B” company that received investments by paying 200% or 300% of the investment principal within a short period of time when investing in businesses such as stem cell storage and treatment against many and unspecified persons.

On June 2015, the Defendant, at the foregoing Gwangju metropolitan center located in Seo-gu, Seo-gu, Gwangju, and 5th century, provided that “B Company is a company selling stem cell treatment rights at discount,” and the victim D is a company with its head office in the United Kingdom. If the Defendant invests KRW 260,000 won, KRW 520,000,000, KRW 15660,000,000, and KRW 144040,000,000,000, in each investment amount, he/she may receive human rights to stem cell treatment from at least 10% to 50%, and the Defendant grants allowances accordingly. The recommendation allowances may receive 5% of the subscription amount, and the bonus, etc. The graduation allowances may receive at least 300% to 7-15,000,000 graduates.”

However, in fact, “B” is not a company that has its head office in the UK, but is established in Hong Kong. It was confirmed that the company had no record of entry and exit and no relation with the sale of the discount of the stem cell operation right. Ultimately, the company was engaged in a profit-making business on the stem cell operation and storage, and there was no ability for investors to pay the profit therefrom. It was merely that the company received the investment from subordinate investors and received the investment from senior investors, and was continuously paid the investment money under the term “competing” method by which the profits are paid to senior investors.

Nevertheless, the defendant deceivings the victim and is in the name of the victim E.