Defendant

A Imprisonment of 10 months, Defendant B imprisonment of 8 months, Defendant C and D, respectively, shall be punished by imprisonment of 6 months.

(b).

Punishment of the crime

[criminal record] Defendant A was sentenced to eight months of imprisonment for fraud at the Seoul Central District Court on February 17, 201, and on November 10, 2012, Defendant A had two more same kinds of records in addition to the completion of the execution of the sentence in the Western Prison District Court.

Defendant

B On November 29, 2013, the Seoul Eastern District Court has been sentenced to a fine of five million won for fraud in addition to that of fraud, two times more of the same force.

Defendant

D has been sentenced to a fine of two million won on June 18, 2010 due to a violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission by the Suwon District Court.

【Criminal Facts】

1. The fraud is a general partner of P, who is a similar recipient company, and was in charge of the overall operation of the P, such as the raising of investors and the management of funds, and the defendant B is a general partner in charge of the receipt of investors and the reorganization of books of accounts of the said union. The defendant C and D are limited partners of the said union, and each of them has been in charge of the recruitment and management of investors.

In fact, P, which is run by the Defendants, was in a situation where it is difficult for investors to make self-sale or profit-making by not doing any other profit-making business except investment solicitation, and eventually, it was inevitable to take a method of paying the full amount of investment or the amount in excess thereof to the existing investors by using investment funds attracting from subordinated investors. Under such business structure, insofar as the new investors continuously increase in water supply, it is clearly anticipated that payment of high-rate allowances agreed upon to the investors would not be made. Thus, there was no intent or ability to pay the agreed high-rate earnings to many investors.

Nevertheless, around October 30, 2014, the Defendants received dividends of KRW 470,000 in total on six occasions, if the Defendants invested one unit of KRW 76,000 in Qtel around 101 in Seoul Special Metropolitan City, and the victim R, within ten days.