Defendants shall be punished by imprisonment for one year and six months.

However, the defendant B is above two years from the date this judgment became final and conclusive.

Punishment of the crime

Defendant

On September 21, 2012, A was sentenced to five months of imprisonment for aiding and abetting fraud at the Seoul Central District Court, and the execution of the sentence was terminated on November 29, 2012. On May 26, 2017, Defendant B was sentenced to two years of suspended sentence on June 3, 2017 by imprisonment with prison labor at the Seoul East East District Court, and the sentence became final and conclusive on June 3, 2017.

The Defendants, in collusion, did not have the intent or ability to repay money from the victim C even if they borrowed money from the victim C, and did not have the intent or ability to offer the stocks of D (hereinafter referred to as D) as collateral,

1. At around 14:00 on March 17, 2015, the F judicial scrivener office located near Seocho-gu Seoul Metropolitan Government E Station, the injured party C shall pay the injured party C the interest of 10% per annum per week on lending KRW 500 million to the injured party C within one month.

In order to provide 2 million common shares of D on March 18, 2015 and to guarantee the implementation thereof, the second priority collective security right on the five parcels outside of Asan City and H and three parcels outside of Asan City will be established as of March 17, 2015.

On March 18, 2015, 200,000 common shares of D, 2,00,000 common shares of each of the above real estates, if the high seas, the right to collateral security against each of the above real estates, would be terminated. The deceiving, upon delivery by the victim C of the KRW 450,000 (J-K), acquired KRW 450,000,000 (L-M) from the victim’s 100,000 won of check issued at I bank.

2. From March 18, 2015, around 13:00 to the French Seocho-gu Seoul Metropolitan Government, N to the victim C through N, “Additional KRW 400 million shall be paid 10% interest per week on the main loan, and repaid after one month.

On March 17, 2015, D will offer an additional share of 1.5 million common shares as security, together with D's common shares of 2 million common shares, offered as security.

As a performance security for this, the victim C shall be urged to create a pledge in the name of the creditor with respect to the exercise of the D Co., Ltd. (hereinafter “O”) by deceiving the victim C to transfer KRW 400 million to the P bank account in the name of O around 17:22 on the same day.