Defendant

A shall be punished by imprisonment with prison labor for four months, and imprisonment with prison labor for two months.

Of the facts charged against the Defendants.

Punishment of the crime

[criminal record] On July 29, 2020, Defendant A was sentenced to three years of imprisonment and ten years of imprisonment for a violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) at the Seoul High Court on July 29, 202, and Defendant C was sentenced to six years of imprisonment for the same crime in the same court on the same day. The above judgment became final and conclusive on November 26, 2020.

[Criminal facts] To the extent that there is no concern about actual disadvantage to the Defendants’ exercise of their right to defense, the facts charged are recognized as criminal facts.

1. On April 2014, the Defendants established E (hereinafter “E”) for the purpose of investing in foreign derivatives with the 7th floor of the Gangnam-gu Seoul Y building located in Gangnam-gu, Seoul Y Building on April 1, 2014. Defendant A, a representative director, takes charge of the management of the company including the operation of the investment fund. Defendant C, as a business director, takes charge of the selection and education of a recruitment agent, investor recruitment and management, payment of subscription agent’s fees, and payment of customer earnings. Defendant C planned to attract investment funds from many and unspecified persons by entrusting investment funds to a business director abroad.

Accordingly, on August 18, 2017, the Defendants recommended the Defendant’s solicitation agent to make an investment by making a false statement to the effect that “A company that pays a large amount of profits by investing in foreign FX derivatives (foreign exchange Ma-related derivatives)” to the victim X. However, if an investment is made in the FX-related product, the Defendants may obtain 10% profits per annum.”

However, in fact, the Defendants did not have the ability to make high profits through investment in overseas FX derivatives, and there was no other asset or profit-making business in the company, so it was a structure that the Defendants solicited the next-order investors and operated by the method of “return” under which the senior investors would pay the profits to the senior investors with the investment money, and as long as the next-order investors solicitation cannot continue to exist.