A defendant shall be punished by imprisonment for not less than one year and six months.

Punishment of the crime

On February 20, 2013, the Defendant was sentenced to three years of imprisonment for fraud at the Seoul Central District Court, and the said judgment became final and conclusive on May 9, 2013.

In order to establish a regional housing association and carry out the business of constructing apartment units in the same lot of land, the owners of land, such as D, Dongjak-gu Seoul, Seoul, established a promotion committee for the establishment of the E-regional housing association (hereinafter referred to as “the promotion committee”).

Around January 7, 2008, while the promotion committee had been colored with an executing company which will act on behalf of the local housing association, the promotion committee entered into a project understanding statement on the condition that F will cover the operating expenses of the promotion committee, the expenses required to obtain the authorization of the establishment of the regional housing association, and other expenses required in whole for the project between F Co., Ltd. (hereinafter referred to as the "F") and the representative director.

Accordingly, the Defendant promoted the work of obtaining consent to more than 80% of land owners and securing 50% of the members of the regional housing association as well as immediately subsidizing office operating expenses to the promotion committee along with F G, H and I.

1. Around February 2008, the Defendant against the victim J made a false statement to the victim J that “F is conducting a project to build approximately 350 apartment units on the site of 6,700 square meters in Seoul, Dongjak-gu Seoul, Seoul, with the establishment of approximately 350 apartment units on the site of 6,700 square meters, and is inviting investors. When investing money, the Defendant would return the profits without a framework after one year.”

However, at the time, F had no other project than the above apartment execution project, and F had no other way to secure the F Office operating expenses without having borrowed money, and was running the apartment execution project of the said regional housing association with the loan of KRW 150 million from another person, and new investors have invested funds or invested funds.