1. All of the instant lawsuits are dismissed.

2. Litigation costs shall be borne by U law firm;

1. Basic facts

A. The Defendants were indicted with the Seoul Central District Court on suspicion that they committed crimes, such as violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud), as executive officers of AB Company (hereinafter “AB”) or representatives of “AC”, a company managing investment funds of the said company.

(Seoul Central District Court 2015Gohap974, 995, 1010 (Joint), and 1021 (Joint)). On April 4, 2016, the above court found Defendant W guilty of the following criminal facts: (a) sentenced Defendant W to imprisonment for 13 years; (b) sentenced DefendantY and X for 7 years; (c) sentenced Defendant Z and AA for 4 years; and (d) ordered compensation for damages to 2,466 victims.

Defendant W is the real representative of AB, Defendant Y is the director of the marketing headquarters, Defendant X is the nominal representative director, Defendant X is the unit list, Defendant AA is the private enterprise managing the investment funds of AB. AA is the nominal representative.

Around March 2015, the Defendants of the violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) made a false statement to the effect that “If the Defendants are entrusted with investment funds to AB, they will invest the money in foreign futures, guarantee the principal after three months, and guarantee the investment returns equivalent to approximately 2.5% per month.”

However, the Defendants thought that most of the above investments were to be used for the purpose of using the 'comprehion' in return, etc. of investment funds to AD investors and AB senior investors who had been operated by the Defendants before AB.

The Defendants, as seen above, were remitted to KRW 138,031,00,000 in total from 2,993 victims, including deceiving the victims.

(b) Any person who violates the Act on the Regulation of Conducting Fund-Raising Business without obtaining authorization or permission, or making registration or report pursuant to the Act and subordinate statutes, is a business of raising funds from many and unspecified persons in the future.