Defendant

A Imprisonment with prison labor for three months, and for one month, for defendants B and C, respectively.

Punishment of the crime

[criminal power] On November 29, 2016, Defendant A was sentenced to a suspended sentence of ten months for a crime of fraud at the Seoul Central District Court on June 23, 2017, and the judgment became final and conclusive on June 23, 2017. On July 12, 2018, Seoul High Court sentenced five years and six months to imprisonment for a crime of fraud, etc., and the judgment became final and conclusive on October 4 of the same year, and on June 29, 2018, Defendant A was sentenced to a suspended sentence of four months for a violation of the Punishment of Violences, etc. Act (joint confinement) at the Seoul Central District Court.

7. The judgment became final and conclusive.

Defendant

B On July 12, 2018, the Seoul High Court sentenced imprisonment with prison labor and three years and four months for fraud, etc., and the judgment became final and conclusive on October 4 of the same year.

Defendant

C On January 28, 2016, the Seoul Central District Court sentenced eight months to imprisonment for a violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission, etc. on May 4, 2016. The execution of the sentence terminated on July 12, 2018. The Seoul High Court sentenced three years and six months to imprisonment for fraud, etc. at the Seoul High Court on July 12, 2018.

7.20. The judgment became final and conclusive.

【Criminal Facts】

1. The Defendants’ co-principal from June 2016, as the representative of D Co., Ltd. (hereinafter “D”), who is a similar recipient company, performed overall control over the management of funds, decision on investment, and other business affairs of D. Defendant B, Defendant C, as the management director of the above company, led each business team to the business team, and conducted the business personnel education, investment solicitation, etc., and D is a corporation established for the purpose of real estate leasing business.

When the Defendants make an investment in D against many unspecified investors, they would be able to secure the high-income of 10% per month within a short period of not more than 3 months through stock investment, corporate acquisition and merger.

Accordingly, the Defendants established each business office in Yeongdeungpo-gu Seoul Metropolitan Government E building Fho Lake, D head office in head offices in head offices in head offices in head offices in head offices in head offices in H buildings in the same Gu, 12 floors in the same Gu J buildings in Busan, Busan, Gwangju, and Incheon.