Defendant

A Imprisonment for 8 months, Defendant B's imprisonment for 1 year and 2 months, and Defendant C's fine for 5 million won.

Punishment of the crime

Defendant

B On July 14, 2016, the Suwon District Court sentenced imprisonment with prison labor for a violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission and became final and conclusive on December 20, 2016.

1. No one shall engage in the business of importing investments under the agreement to pay the total amount of investments or the amount in excess thereof to many and unspecified persons in the future without obtaining authorization, permission, etc., or filing for registration, etc., under finance-related Acts and subordinate statutes;

Defendant

B It is operated by a similar receiver who sells red ginseng products without obtaining permission from the authorities as Defendant A, and Defendant B is operated by a similar receiver.

With the knowledge of the history of detention, Defendant B established a company with the trade name of “A” (hereinafter referred to as “D”) to arrange the export of red ginseng products, and Defendant A established a company with the trade name of “ABAB” (hereinafter referred to as “C”) to raise investors and receive money. However, as the joint business between D and C is conducted between D and C, Defendant B used the same fund-raising business by concluding a contract to allow Defendant B to use the investment funds that C received.

Accordingly, the defendants operate C, which is a fund-raising company without the authorization from the authorities in the fifth floor of the Songpa-gu Seoul building, and around December 2015, the defendants want to export red ginseng from the F Building G in Gangnam-gu Seoul and the victim H to China.

When exports are made to China, a large profit can be made because the margin ratio of products reaches from 25% to 40%.

If an investment is made, an amount equivalent to 4% of the invested amount shall be paid daily allowances for 6 weeks each week for 5 days.

If so, an amount equivalent to 120% of the principal can be received.

The 16% of the investments of subordinate investors shall be recommended as a recommendation allowance when recommending subordinate investors.