Defendant

A Imprisonment for five years, each of the defendants B and C shall be punished by imprisonment for one year.

The Seoul Central District Prosecutors' Office, seized.

Punishment of the crime

Defendant

A was sentenced to two years of imprisonment for fraud at Seoul High Court on April 23, 2009, and the said judgment became final and conclusive on April 30, 2009, and on July 30, 2010, the parole period was expired on September 20, 2010 during the execution of the sentence, and the parole period was expired on September 20, 201. The Defendants were sentenced to one year and four months of imprisonment, Defendant B, and C for a violation of the Act on the Regulation of Conducting Fund-Raising at the Seoul Central District Court on October 6, 201, and the said judgment became final and conclusive on May 18, 2012.

Defendant

A is the actual representative of E, the defendant C, and the defendant B, respectively, the head of the business division (the head of the business division) of E.

The Defendants: (a) Defendant A took charge of the management of funds, such as education of employees and investment funds, and management of employees; and (b) Defendant C and B conspired to receive investment funds from investors and acquire them by fraud while taking charge of the education of business employees, education of investors, and counseling for investors.

Accordingly, around April 29, 201, the Defendants conspired to the effect that, according to Defendant A’s investment explanation at the Gangnam-gu Seoul E office, “F, an investor, through the debt collection, purchases non-performing loans from the company, raises profits through debt collection, and makes investments in the amount of KRW 5 million per Gu, the Defendants would pay 2.5% dividends every month, and return the total amount of principal after three months. In addition, since profits accrue from the purchase of the company’s land and the sale of profits by generating the market price profits, there is no problem in returning the said investment amount.”

However, in fact, debt collection through the purchase of non-performing loans planned by the Defendants at the time of the time did not have any preparation for debt collection, such as that the debt collection team is not formed, and thus no profit was generated therefrom, and the land purchased by the above company is merely part of the investment.