The defendant shall be punished by imprisonment with prison labor for two years and by imprisonment for eight months with prison labor for the crime No. 2 of the judgment.

Punishment of the crime

【Criminal Power】 On February 25, 2011, the Defendant was sentenced to a suspended sentence of ten (10) years of imprisonment for fraud at the Seoul Central District Court, which became final and conclusive on March 5, 2011.

【Criminal Facts】

1. Violation of the Act on the Aggravated Punishment, etc. of Specific Crimes (Fraud) (hereinafter “Y”) is a company that issues gift certificates after its establishment on January 5, 2005.

Co., Ltd. (hereinafter referred to as the “Z”) was established on January 6, 2005, and AA Co., Ltd. (hereinafter referred to as the “A”) was established on June 27, 2006 and is also a company selling AB cultural products rights issued by Y as a Y’s subsidiary.

AC Co., Ltd. (hereinafter referred to as the "AC") is a Y's subsidiary company that carries on a container construction project as the sales proceeds of Z and AA's gift certificates.

R, along with V, established Y as a representative director from January 5, 2005, recruited merchandise coupon business and served as Y’s representative director. A merchandise coupon investor is a person in charge of business explanation against the victims. V is one of the joint founders of Y and Z, Y, Z and AA, and issued merchandise coupon by exercising overall control over the establishment and operation of the above company from December 2004, and issued merchandise coupons to employees such as the representative director and the head of affiliated department of the above company.

T is one of the joint founders of Y and Z, and as the representative director of AC, he has been in charge of the task of issuing merchandise coupons from January 5, 2005.

U is a joint founder of Y and Z, who is in charge of the business and merchandise coupon payment business of the above company from December 2004.

W was in charge of planning related to the establishment of the above company and the issuance of merchandise coupons from January 6, 2005, and from August 24, 2005, from around August 2005, W was in charge of fund management as a director of the Y and Z, and from August 24, 2005.

S has been in charge of financing management and enforcement of AA as a representative director of A from July 1, 2006.