A defendant shall be punished by imprisonment for two years.

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

Punishment of the crime

The defendant is a representative director of the F limited liability company (the name of the limited liability company G was changed on March 13, 2012).

On November 19, 2004, when entering into a contract for construction works with the victim H Co., Ltd. (hereinafter “H”) and the J Apartment-gu Seoul Special Metropolitan City, 13,917.659, the total floor area of J Apartment-gu, 40,780.696, as stated in Article 14 of the contract, F failed to fully perform the obligations to H by the time the preservation registration of the object of the construction is registered, in order to secure H’s claim against H F, F shall set up a collateral security (the maximum amount of claims: loans and construction payment claims, and the outstanding principal and interest of the F Financial Institutions that guaranteed H, 130% of the outstanding principal and interest of the loan and interest of the F Financial Institutions, as stated in Article 14 of the contract.

Since F still failed to perform the obligation of H under Article 14 of the above construction contract with respect to H around March 2012, as the amount equivalent to KRW 3,248,842,151 of the above construction contract is still not met, the Defendant has the duty to set up the first priority right to H with respect to the unsold J apartment within the limit of 130% of the amount of the obligation with respect to the unsold J apartment.

On the other hand, H filed a lawsuit seeking revocation of a fraudulent act against K, L, M, N, andO, which had been completed the registration of ownership transfer through a sales contract for the above apartment units 102, 102, 108, 105, 108, 1203, 108, 1506, 110, and 1306, and passed the lawsuit on August 19, 2010, H appealed appealed (Seoul Central District Court 2008Gahap4662), but the appeal was dismissed on May 11, 2010 (Seoul High Court 2009Na94560), but the appeal became final and conclusive on August 19, 2010.

(Supreme Court Decision 2010Da42761). Based on the judgment revoking the above fraudulent act, the registration of ownership transfer of the above five apartment bonds was cancelled on March 7, 2012 and came to belong to F.