1. All of the instant lawsuits are dismissed.

2. Litigation costs shall be borne by A;

1. Basic facts

A. The Defendants were indicted at the Seoul Central District Court on suspicion that they committed crimes, such as violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud), as executive officers of I Co., Ltd. (hereinafter “I”) or representatives of JJ, a company managing investment funds of the said company.

(Seoul Central District Court 2015Gohap974, 995 (Joint), 1010 (Joint), and 1021 (Joint)). On April 4, 2016, the above court found Defendant D guilty of the following criminal facts: (a) sentenced Defendant D to imprisonment for 13 years; (b) sentenced Defendant F and E for 7 years; (c) sentenced Defendant G and H for 4 years; and (d) paid damages to 2,466 victims.

Defendant D is a real representative of the I, Defendant F is a director and marketing director, Defendant G is a nominal representative director, Defendant E is a military unit, Defendant H is a private business entity managing I’s investment funds. A.

The Defendants in violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) made false statements to the victims on March 2015, 2015, stating that “I will invest the money in foreign futures, thereby guaranteeing the principal after three months, and guaranteeing investment returns equivalent to approximately 2.5% per month.”

However, the Defendants thought that most of the above investment funds were used for the purpose of using the “licking” for the return of investment funds to K investors and I senior investors.

The Defendants, as seen above, were remitted to KRW 138,031,00,000 in total from 2,993 victims, including deceiving the victims.

(b) Any person who violates the Act on the Regulation of Conducting Fund-Raising Business without obtaining authorization or permission, or making registration or report under any Act and subordinate statute, shall be a business of raising funds from many and unspecified persons in the future, and the principal or excess thereof.