2013Gohap171, 235 (Joint) Violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes

(Embezzlement), occupational embezzlement, and criminal proceeds Concealment

Violation of the Act on the Punishment, etc. and Misappropriation;

Fraud

A person shall be appointed.

Ho-Promotion ( Indictment, Public Trial)

Law Firm International Law Firm, Attorney Park Il-young and Haman-young

October 25, 2013

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

1,439, 450, 600 won shall be additionally collected from the defendant.

The provisional payment of the amount equivalent to the above additional collection charge shall be ordered.

Criminal facts

The defendant is a person who actually operates C Co., Ltd. (hereinafter referred to as "C") that produces steel papers, such as SUS CABLE TTRAY, and supplies them to B Co., Ltd. (hereinafter referred to as "B"), the representative director of the C Co., Ltd., Ltd. (hereinafter referred to as "D"), and the representative director of the C Co., Ltd., Ltd. (hereinafter referred to as "C"), such as heat exchange engines, etc., and is a person who exercises overall control over the overall operation of each of the above companies, including the management and execution of funds.

2013Gohap171

1. Property in breach of trust;

(a) Offering money and goods to E;

On January 2010, the Defendant: (a) made an illegal solicitation to allow E in charge of the purchase of electric appliances, such as “the cable sheet”, as the steel head of the steel management team, to supply a large quantity of electric appliances, such as “F,” to E; and (b) distributed a large quantity of cable sets to us than G, a competitor; (c) assigned more than two times more than G; and (d) around the second half of the year of the 2010, the Defendant requested for the allocation of the above supply quantity to E at the office of the Defendant located in the Busan Gangseo-gu, Busan, for continuous convenience, and issued KRW 10 million to E; and (e) issued KRW 20 million from the office of the above Defendant to E in spring around February 201 and around January 2012, 200.

After all, the Defendant made an illegal solicitation on the E’s duty to handle another’s business and provided KRW 50 million to the Defendant.

(b) Offering money and other valuables to H;

At the above defendant's office around spring, around 2010, the defendant supplied a large number of steel stuffs to B materials management teams as the steel crums, and delivered KRW 3 million to H with an illegal solicitation to the effect that "the person in charge may request a monthly disposal of approval from the steel crums," and delivered KRW 2 million to H at the above defendant's office around the second half of 2010, KRW 3 million around the first half of 201, KRW 3 million around the second half of 2011, and KRW 2 million around the second half of 2011, respectively, and delivered KRW 5 million to H at the vicinity of the conference room inside B around the end of the end of 2011.

In the end, the Defendant made an illegal solicitation with respect to H’s duties to handle another’s business and provided KRW 15 million.

2. Violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Embezzlement);

(a) Embezzlements by selling scrap metal-free materials;

On April 22, 2005, the Defendant disposed of KRW 7,716,00,00 from J, a scrap metal company, without any balance of transaction data such as a tax invoice on April 22, 2005, for the victim C’s office located in Gangseo-gu Busan Metropolitan City, for the victim, and then disposed of it to J, a scrap metal company, the Defendant, regardless of the victim, to whom the Defendant used for his personal use, received the amount of KRW 7,716,00 from J, and embezzled the amount of scrap metal for the personal purpose. From June 18, 2013, the Defendant sold the scrap metal without any transaction data owned by the victim over 127 times in total from the date of the crime list (1) to June 18, 2013. The Defendant was equivalent to KRW 305,00,000,000 from K Bank account in the name of the Defendant for personal use, foreign exchange bank account in the name of L, 305, and 305.5

(b) Embezzlement of corporate funds through processing transactions or over-the-counter appropriation;

On January 2006, the Defendant sent the difference to the K company bank account in the name of the K company bank account to 0 who operates N while keeping the company funds owned by the victim in the course of business on behalf of the victim at the office of the victim C. The Defendant sent the difference to the K company bank account in excess of the amount paid in C.

Therefore, the Defendant paid 20,000 won to 0,000 won for the Company Fund owned by the victim, and embezzled KRW 24,655,00 from 0 on January 16, 2006 to 0 on the part of the Defendant, regardless of the victim’s personal use, through the K company bank account in the name of K used for personal use, and from June 1, 2010 until June 1, 2010, the Defendant paid the processed transaction price or excessive appropriation to C’s trading company over a total of 26 times, such as the list of crimes in the attached Table (2). The Defendant embezzled KRW 594,917,200 in total by receiving the M company name bank account or the L company bank account used for the same purpose as the K company name bank account or the L bank account in the form of foreign exchange bank account.

3. Violation on the regulation and punishment of criminal proceeds Concealment.

The defendant, as described in paragraph (2) above, embezzled C's scrap iron and funds.

22. Around January 31, 201, the Defendant received KRW 7,716,00 from the K company bank account in the name of K, which is a borrowed account used by the Defendant, and received KRW 7,716,00,00 from the time pretended the fact that the proceeds of crime accrue to K, a third party, and subsequently, from January 31, 201, up to January 31, 201, the fact that the proceeds of crime was reverted to K, as shown in the [Attachment] List of Crimes Nos. 1 to 103 and the List of Crimes (2) of the Attached Table of Crimes (1) from January 31, 201 and KRW 782,197,80 out of the proceeds and its funds to the K company bank account in the name of K, 429,494,758,400 to the M company bank account in the name of M company, and transferred the total amount of KRW 1,439,60,60.3

“2013 Gohap235,”

4. Property in breach of trust;

On April 209 or around May 2009, the Defendant issued 20 million won cash and gift certificates in total to P six times as shown in the attached crime list (3) from that time until January 2012, as follows: (a) the Defendant: (b) issued to P six times a total of 20 million won of cash and gift certificates under the pretext of giving support for the supply of cable calls and continuous convenience in the future.

Accordingly, the defendant made an illegal solicitation on the P's duty to handle another's business and provided KRW 20 million to the defendant.

5. Occupational embezzlement;

A. On July 1, 2010, the victim’s occupational embezzlement C was selected as an institution in charge of the project for the 5MW marine wind power generation using the TPP River, which is a regional leading business entity promoted by the Minister of Knowledge Economy around July 2010, and entered into an agreement with the east-gu Economic Zone Leading Industry Support Group, a foundation affiliated with the Korea Institute for Advancement of Technology, which performs the business selection, post-management, supervision, and evaluation upon delegation of the above business from the Ministry of Knowledge Economy, on the part of the Ministry of Knowledge Economy, and entered into the Convention on the Promotion of Economic Zone Leading Industry (Development of Technology) with the above leading business support group. In relation to the above task, the above leading business support group was obligated to use the government contributions for the purpose of using the research facilities, equipment, materials, etc. limited in accordance with the standards set forth in the above Convention, since it received a total of KRW 1 billion from December 1, 2009 to April 30, 2012.

Nevertheless, the Defendant, at around December 21, 2010, remitted to Q representative R an excessive amount of KRW 50,740,000,000 from the office of Q representative, for the production and processing expenses, purchase expenses, and franchise material purchase expenses, and around December 27, 2010, returned the remainder of KRW 30,820,000,000 from the Defendant’s corporate bank account used by the Defendant after deducting the price under the actual contract from December 27, 2010, and used it for any purpose unrelated to the above development task, such as the purchase fund for D’s factory site purchase, etc., from that time until February 20, 2012, the Defendant received a total of KRW 25,720,000,000 from the government contributions up to 10 times in total to February 20, 2012, and used it as unrelated to the above development task, such as the purchase fund for D’s factory site.

Accordingly, the defendant embezzled the property in violation of his duties.

(b) Occupational embezzlement for victims C;

Although the Defendant, who is the wife of the Defendant, K and the Defendant’s middle school, a wife of the Defendant, did not actually work in C, the Defendant worked in C, and the Defendant was willing to embezzled C’s corporate capital by pretending that he would pay wages to them.

Therefore, on May 2003, the Defendant transferred KRW 655,342 to an enterprise bank account in the name of K used for personal use, regardless of the victim, while keeping the company funds, which are the victim's possession, in the office of the victim in the Gangseo-gu Busan Metropolitan City, for the purpose of the victim, to the bank account in the name of the victim, and used it for personal use from May 10, 2012 to May 178, 201, as shown in the list of crimes in the attached Table (5) from that time, the Defendant transferred KRW 65,342 to the bank account in the name of K used for personal use, regardless of the victim, and used it for personal use.

Accordingly, the defendant embezzled the property in violation of his duties.

6. Fraud;

The Korea Occupational Safety and Health Agency has extended a maximum of 300 million won at a low interest of 3% per annum to those who intend to install facilities necessary for the prevention of industrial accidents.

On February 10, 2011, the Defendant, at the Gyeongnam District Disaster Prevention Team under the Korea Occupational Safety and Health Agency around February 10, 201, set up three lele (30ton SES GNRS AS) which is a harmful or dangerous machinery and apparatus under the Industrial Safety and Health Act (30ton SES, 10tonO. HCR ASSS YS Y Y2). The Defendant, upon filing an application for a loan of industrial accident prevention facilities around June 21, 201, submitted a false goods supply contract with T in order to conclude that the Defendant would purchase three klelele, 239,273, and 00 klelele, respectively, from T. The victim submitted a false goods supply contract.

6. 22. Around the following day after the on-site verification of D factories, the decision was made to provide loans of KRW 230,1100,000 following the date. However, in fact, the above goods supply contract was written in installments in accordance with the prior agreement between the Defendant and TN representative, and the actual contract amount entered into between the Defendant and T was only KRW 165,000,000.

Ultimately, the Defendant, as seen above, by deceiving the staff in charge of the victim, received loans of KRW 230,000 from the victim to the Bank account in the name of D around August 4, 2011.

Summary of Evidence

1. Defendant's legal statement;

1. Examination protocol of suspect E by the prosecution;

1. Copies of each protocol of examination of suspect suspect to prosecution E, 00, P;

1. Each prosecutor’s protocol of statement concerning L, 00, 00, M, 00, 000, 000, 000, 000, K, 000, K, 00, 000, 000, R, 0000, 000, 0000, 0000, 0000, and L;

1. Each written statement of J: 0,00,00, E,00,00,00,00,00,00,00, 00,000, and 1. Investigation Report [Attachment of Details awarded by E to C, comparison of details of orders made by PUMTPP G and C, attachment of details of K company bank accounts, attachment of details of transactions of K company bank accounts, submission of documents related to payment of wages, etc., submission of 00 (00 high number of files) cash payments to A, 00, 00, 00 submission of attached documents, 00, 000, 000, 000, 00, 00, 00, 00, 00, 00, 00, 00, 00, 00, 00, 00, 00, 00, 00, 00, 00, 00, 00, 2, 00, 1.

1. E’s order details for E; the entire details ordered by E related to 6049 line; the details of order issued by E related to 6049 line; the details of H2277, 2280-282; the details of order for E corporate bank account transactions; the details of K corporate bank account transactions; the current status of K’s individual benefit per individual; the statement of transactions (cash payment details); two copies of the transaction statement; the Customer Director; one copy of the additional tax base certificate; one deposit certificate; one pre-announcement of taxation; the pre-announcement; the goods supply contract (the file of June 20, 201); the goods purchase contract in the name of 6049 line; the details of order issued by E; the details of order issued by E; the details of account transactions; the details of account transfer; the details of account transactions; the details of account deposit; the details of account transfer; the details of account deposit and the details of account payment; and the details of account deposit (the statement of account deposit 210 copies; -12 copies and 21);

1. Article relevant to the facts constituting an offense and the selection of punishment;

Article 357(2) and (1) of the Criminal Act (the fact of acquiring or disposing of criminal proceeds, choice of imprisonment), Articles 356 and 355(1) of the Criminal Act (the fact of acquiring or disposing of criminal proceeds), Articles 357(2) and (1) of the Criminal Act (the fact of giving rise to breach of trust, choice of imprisonment), Articles 347(1)2 of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes, Articles 356 and 355(1) of the Criminal Act (the other fact of occupational embezzlement, including each victim’s remaining fact of embezzlement), Article 347(1) of the Criminal Act (the fact of fraud, and choice of imprisonment)

1. Aggravation for concurrent crimes;

Article 37 (former part of Article 37, Article 38 (1) 2, Article 50 of the Criminal Act, and Article 50 of the Criminal Act, and the sale of hard scrap metal with the largest penalty, shall be subject to concurrent crimes resulting from a violation of the Act on the Punishment, etc. of Specific Economic Crimes (Embezzlement)

1. Discretionary mitigation;

Articles 53 and 55(1)3 of the Criminal Act (The following extenuating circumstances in favor of the reasons for sentencing)

1. Additional collection:

Articles 10(1) and 8(1) of the Act on Regulation and Punishment of Concealment of Criminal Proceeds

1. Order of provisional payment;

The reason for sentencing of Article 334(1) of the Criminal Procedure Act / [Scope of applicable sentences] Imprisonment with prison labor from June to June 22

[1] Violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Embezzlement) and occupational embezzlement

○ Determination: Embezzlement. 3 Types

○ Special Convicts

- Mitigation elements: 1 substantially one company or family company (based on C in most cases of damage caused by each embezzlement of this case)

○ Scope of Recommendation: Imprisonment for a year and six months to three years (the area of mitigation);

○ General Convicts

- Mitigation elements: Serious reflect

- Aggravations: in the case of embezzlement

[Second Crime] Fraud

○ Determination: Fraudulent, General Fraud, Type 2

○ Special Convicts

- Mitigation elements: where considerable damage has been recovered;

○ Scope of Recommendations: Imprisonment of 10 months to 2 years (the scope of mitigation);

○ General Convicts

- Mitigation elements: Serious reflect

[The scope of revised recommended punishment] From one year and six months to (in accordance with the standards for handling multiple crimes, 1/2 of the upper limit of the sentence range of the second crime is added to the upper limit of the sentence range according to the standards for handling multiple crimes, and since there are concurrent crimes for which the standards for sentencing have not been established, only the lower limit of the above sentence scope should be considered).

[Determination of Sentence] The above sentencing factors such as one year and six months, and the amount of damage caused by each embezzlement of this case exceeds 2 billion won, and the amount increased by the defendant exceeds 87 million won in total. Each embezzlement of this case is to pay the amount to the defendant's borrowed account without transaction data of the victim C by the defendant. The defendant is to pay the processed transaction price or excessive amount to the transaction company of the victim C, to pay the defendant's excessive amount, and then to return the amount to the defendant's borrowed account, etc. The defendant's excessive amount of the money after using the government contributions, and to use the money for personal purposes by raising the funds for the crime or embezzlement of the money. In light of the method of the crime or the place of use of the money, etc., it seems that it was to have been used for personal purposes by raising the funds to raise the funds to a person who is not an employee of the victim C, the victim C is a de facto one company of the defendant, which is 250 million won or more for the country of the victim, the defendant's social character and behavior and behavior of the defendant, etc.

Justices Kim Dong-young

Judges Kim Jong-jin

Judges Sung-man