Defendant shall be punished by a fine of KRW 10,000,000.

Where the above fine is not paid, 100,000 won shall be one day.

Punishment of the crime

The Defendant is the head of the Busan Franco, Ltd., which is an illegal multi-level company B, and B is a corporation established for sale and chain recruitment business, such as sound noise and vibration exercise equipment.

Defendant 1 conspired to receive investment money from many unspecified persons on the pretext of paying high-profit profits exceeding the principal, while operating a multi-registered multi-level company with H, who is a real operator of the above company, as well as C, adviser D, E, F, G, and H, who is a representative director in the name of the above company.

1. A person who intends to engage in multi-stage sales business in violation of the Act on Door-to-Door Sales, Etc. shall register multi-stage sales business with the Fair Trade Committee, Special Metropolitan City Mayor, Metropolitan City Mayor, Metropolitan Autonomous City Mayor, or Special Self-Governing Province Governor;

Nevertheless, the above C, D, E, F, G, and H did not register multi-stage sales business, and they installed 86 total markets and 401 agencies nationwide, such as Seoul, Gyeonggi-si, Busan, Busan, Ulsan, Ulsan, and Gyeong-do, and their headquarters in the third floor from June 3, 2013 to June 2, 2015. Accordingly, the Defendant participated in the operation of the above company by taking charge of the role in the class corresponding to each class while operating the Busan Fri-gu, Busan, from October 2013 to May 2, 2015.

The relevant persons of the above company, including the Defendant, have explained the recruitment of members through the head office, the general sales office, and the agencies affiliated with the general sales office, and concluded an entrustment management contract with many and unspecified persons to sell and sell physical devices, such as sound vibrations, maths, and knobs, and the equipment that sold and sold medical devices, by means of lease, etc. upon entrustment by B, and then leased or installed the equipment to each general sales office or agency, and sold the exercise equipment using the exercise equipment to make profits. Of the purchasers of the equipment, a consignment management contract is concluded.