Defendant

A Imprisonment with prison labor for one year, and for two years, each of the defendants B.

On August 20, 2009, the Defendants of the Public Prosecutor’s Office were sentenced to the suspension of the execution of imprisonment for six months at the Suwon District Court, respectively, for fraud, and on August 28, 2009, the said sentence becomes final and conclusive.

[2011 Highest 1310] Defendant A is a representative director of D Co., Ltd., and Defendant B is a director of D Co., Ltd., who is in charge of raising funds of the company.

On October 15, 2004, the Defendants and D Co., Ltd. concluded a contract for the construction of G-Building Apartment constructed on the land outside the Seoul Yangcheon-gu Seoul National Housing Association (hereinafter “the instant association”), and agreed that the said company will bear the operating expenses of the instant association in the future and be responsible for all legal disputes arising from the instant association, and that it will receive 36 households of general apartment units in the form of payment in lieu of the construction cost as the construction cost, remaining after paying to the existing construction company out of approximately KRW 2.7 billion of the members’ contributions set as the construction cost.

However, around March 27, 2003, H Co., Ltd. immediately before the above agreement entered into a contract with the instant association to provide that the said new construction works shall be supplied from the instant association, but the members’ contribution to the construction cost shall be KRW 2.7 billion and the disposal right against the general unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit unit