2015Gohap130 Violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud)

1. A;

2. B

Happy (prosecutions) and Ying-jins (public trials)

Law Firm C (for all the defendants)

Attorney in charge D

June 16, 2016

Defendants shall be punished by imprisonment for two years.

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

Criminal facts

The Defendants borrowed an amount equivalent to KRW 800,000 from the victim E to the victim from 2004 to 2006 on a total of six occasions as business funds, but most of them were not repaid.

On April 2010, the Defendants made a false statement to the effect that, in order to obtain credit from the buyers in order to engage in the business of exporting fertilizers to Japan at a non-permanent place, the Defendants made a loan of KRW 1.7 billion from a financial institution under the name of a business partner in the name of the business partnership in the high seas, and used approximately KRW 700 million in repayment of money borrowed from the Sinsan. 250 million in loan to F, and the remainder of KRW 700 million in the name of the Sinsan only used the money for the public announcement of the entry of fertilizers after a regular deposit under the name of the Sinsan, and then used the money for the public announcement of the entry of the Sinsan, the Defendant would cancel the right to collateral security on the land provided by the Sinsan soon after success in the business and after three years after the maturity of the above regular deposit."

However, the Defendants did not have the ability to repay the above loans on their own due to the lack of specific business plans or peculiar property. However, the Defendants used the victim who wants to receive debts from them to provide the land as security, and used the victim's property to make loans of approximately KRW 1.7 billion in F in the name of F, disguised as if they were to repay the victim's debts of KRW 750 million in the name of F, and leased KRW 250 million in the name of F having experienced difficulties due to the shortage of business funds at the time to the point of time, and used the above regular deposits as security for private purposes, such as personal and physical repayment, and acquired the victim's property by means of offsetting them with the fixed deposit without paying the above additional loans.

The Defendants, around May 13, 2010, had the victim offer as security the previous 20,621 square meters and nine parcels (total 19,569 square meters) from the two cities in Yangju-si, the sum of the officially announced land values of KRW 1.89,000,000, which are owned by the victim, to the extent that there is an agricultural cooperative for Yangyang-si, the Namyang-si, the Namyang-si, and received a loan of KRW 1.7 billion in the name of F.

As a result, the Defendants conspired to induce the victim to acquire the pecuniary benefits equivalent to KRW 1,496,249,865 (the maximum debt amount of the collateral security 2,210,000,000 - the repayment amount of KRW 713,750,135) 1).

Summary of Evidence

1. Defendants’ respective legal statements

1. Legal statement of the witness H;

1. Each statement of E in the suspect interrogation protocol against the Defendants

1. An additional agreement, such as an application for providing security, an application for each loan, and details of deposits;

1. A credit report, etc. and an appraisal report;

Application of Statutes

1. Article applicable to criminal facts;

Article 3(1)2 of the former Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Amended by Act No. 13719, Jan. 6, 2016); Articles 347(1) and 30 of the Criminal Act

1. Discretionary mitigation;

Articles 53 and 55 (1) 3 of the Criminal Code (The consideration of the favorable circumstances among the reasons for the two-year punishment)

1. Suspension of execution;

Article 62 (1) of the Criminal Code (General Conditions favorable to Reasons for Determination of Punishment)

Reasons for sentencing

1. Scope of applicable sentences under Acts: Imprisonment with prison labor for one year and six months to fifteen years; and

2. Application of the sentencing criteria;

【Scope of Recommendation】

Types 3 (at least 500 million won, less than 5 billion won), reduction area (one year to 6 months)

[Special Mitigation]

Members not subject to punishment

3. Determination of sentence: Two years in each calendar year and three years in each suspended sentence;

In light of the method of the instant crime or the amount of damage, etc., the nature of the instant crime is bad and the liability for the crime is also grave, and the damages not repaid until now are considerable is disadvantageous to the Defendants.

On the other hand, the defendants confession and reflect, the defendants do not want to send the defendants to the victim under the agreement with the victim, the defendants are paying a certain amount of money to the victim according to the repayment plan with the victim, the defendant A is the primary offender, and the defendant B does not have the same criminal record.

In light of the above circumstances and other factors of sentencing as shown in the argument of the instant case, such as the age, character and conduct, environment, family relationship, motive, means and consequence of the crime, the circumstances after the crime, etc., the punishment shall be determined as ordered.

The presiding judge, senior judge

Judges Dong-ju

Judges Lee Jong-soo

1) According to the records, the sum of principal and interest repaid to the Korean Agricultural Cooperative, a prior mortgagee, was KRW 1713,750,135,00,00 as the loan money, and the amount of KRW 713,750,00,00 as stated in the changed facts charged, is obvious that there is a clerical error in the above-mentioned facts. Thus, this part of the crime is charged as above, and the calculation result was also conducted (see Supreme Court Decision 2005, 204Do8216, Aug. 18, 200).