A defendant shall be punished by imprisonment for one year.

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

Punishment of the crime

1. The Defendant recruited investors with C (as this case at the Seoul Central District Court on December 20, 2013) and D (as this case at the Seoul Central District Court on September 12, 2014, sentenced to imprisonment with prison labor for eight months and a suspended execution of one year) to acquire money by falsely concluding that “the Defendant would pay 110% of the investment amount to 140,000,000 if he/she invests in the business because he/she is under the implementation of smartphone game business in the E Cooperatives.” The Defendant is in the position of the representative director of the E Cooperatives, and the Defendant is in charge of management and explanation of the office rent and investment, and C is directly in the position of the vice president of the said Association, and D is in charge of receiving the investment amount, issuing the written agreement on investment of association members, and paying the proceeds.

On April 4, 2012, the Defendant and C made a false statement to the victim G at the 7th floor E Farming Association office of the Gangnam-gu Seoul Metropolitan Government FF building, stating, “The 10% of the investment amount on the date of investment shall be paid to the company, and the 50% of the investment amount shall be paid after one week, and the 50% of the investment amount shall be paid after two weeks after two weeks shall be paid to the company.” D received the investment amount from the victim and issued the written agreement of partner investment.

However, in fact, the E-cooperative is not a company that can obtain high profits through smartphone game business, but a similar receiver that temporarily pays high profits to senior investors with investments received from subordinated investors. Thus, even if the Defendant received money from the victim as investment money, it was aware that the Defendant could not pay high interest rate agreed upon, and eventually, the victim could not return the investment principal to the victim.

The defendant, in collusion with C and D, deceiving the victim as above and deceiving it from the victim, i.e., agricultural cooperative name from the victim for investment.