A defendant shall be punished by imprisonment for not less than five months.

Punishment of the crime

From May 2010, the Defendant served as the representative director of “agricultural L Co., Ltd. (hereinafter “L”) established for the purpose of distributing and selling agricultural and fishery products.”

The Defendant introduced investors by way of paying high-ranking fees equivalent to 20% of their investments per case to Korean business start-up consulting, etc. selected in advance. However, the Defendant concluded a consignment contract with the intent of paying 4-5% of their investments every month if the Defendant is a promising company for the stable operation of a stable management by moving-in store, etc. to department stores or large-scale retail stores, which is operated by the Defendant, and preparing a consignment operation contract with the intent of returning the agreed deposit at the expiration of the contract term.

However, L had no stable financial basis other than 50 million won since its establishment, and there was no few sales stores located in department stores, etc. to pay profits. As seen above, L had a business structure that makes it inevitable to operate a business in a way to pay fixed dividends to existing investors by using investment funds attracting from subordinated investors, such as high-amount fees and excessive fixed dividends, in the course of attracting non-discriminatory investors, such as paying high-amount fees through a start-up consulting company.

Furthermore, most of the stores premised on the management of investors and salesroom occupants were merely an event for the salesroom, and they did not actually have any actual salesroom or had any salesroom occupants. Therefore, even if the victims entered into an entrusted operation contract with the victims and received money, they did not have the ability to pay fixed dividends during the agreed period and return the deposit after the expiration of the agreed period.

The defendant around July 23, 2010.