Defendant shall be punished by imprisonment with prison labor for a year and six months and by a fine of 3.1 billion won.

When the defendant does not pay the above fine.

Punishment of the crime

[Criminal Power] On June 12, 2014, the Defendant was sentenced to imprisonment with prison labor for one year and six months for the violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) at the Seoul Eastern District Court on December 19, 2014 and the said judgment became final and conclusive on December

【Criminal Facts】

The Defendant is a person working as the representative director of the closed-dong wholesale company D (hereinafter referred to as “D”) located in the Gangnam-gu Seoul Metropolitan Government Office 402.

The Defendant submitted a list of total tax invoices by seller with false entries, thereby unfairly having the value-added tax refunded or deducted.

1. On October 25, 2011, the Defendant filed a preliminary return of value-added tax on the second preliminary return of the value-added tax for each individual purchaser, stating that he/she was provided with goods equivalent to KRW 12,127,861,250 from E, even though he/she did not receive any goods at the Samsung tax base located in Samsung Tridong, Gangnam-gu Seoul, Seoul, but submitted a false list of the total tax invoices for each individual purchaser.

2. On January 25, 2012, the Defendant for the final return of value-added tax that was issued on February 2011 appears to be a clerical error.

In the same place as Paragraph 1, the final return of value-added tax was filed in February 201, and even if the goods were not supplied, the final return of the value-added tax was submitted a list of individual tax invoices by seller stating as if they were supplied with the goods equivalent to KRW 6,083,414,250 from E.

3. On April 25, 2012, the Defendant: (a) filed a preliminary return of value-added tax at the same place as set forth in paragraph (1) of the same Article on April 25, 2012; (b) but did not receive any goods, the Defendant submitted a false list of total tax invoices by seller, stating as if he were to receive any goods equivalent to KRW 6,605,684,910 from F.

4. The Defendant for the final return of value-added tax on July 25, 2012: (a) filed a final return of value-added tax at the same place as that of paragraph (1) of the same Article on July 25, 2012; and (b) even if the goods were not supplied, the said tax amount is KRW 5,283,598,430 from F.