A defendant shall be punished by imprisonment for two years.

Punishment of the crime

The Defendant is a person who engages in the VR entertainment business with the trade name "D (D)" in Busan B building C in the Gu of Busan.

No one shall engage in a business receiving investments, etc. under an agreement to pay the total amount of investments, principal of capital or an amount in excess thereof to many and unspecified persons in the future without obtaining authorization, permission, making registration, making reports, etc. under finance-related Acts and subordinate statutes

around August 2017, the Defendant recruited investors in DVR entertainment business in Gwanak-gu in Seoul Special Metropolitan City, Seoul Special Metropolitan City, and through F and G, to the victim H through F to the effect that “If 1.2 million won is invested, 200,000 won shall be the machinery management agency fee and KRW 1.00,000,000 shall be paid for each one million won until 7-10% (in convenience, 1.00,000 won, dividends) shall be paid for each one million won. If 1.2 million won is re-invested, 1.0,000 won shall be operated and 7-10% shall be paid for each one million won until the amount shall be KRW 2 million. Upon introducing other investors, 1.2 million shall be paid at the expense of introducing 1.1 million won out of 1.2 million won.”

However, in fact, the Defendant’s operating earnings from the VR entertainment was extremely weak, and the Defendant received new investments from subordinate investors due to the lack of other revenues or assets, and should not return so-called the principal, dividends, etc. of senior investors, so long as the new investors continue to expand, there is no intention or ability to pay the principal and dividends promised even if they received investments from the victim.

As above, the Defendant, by deceiving the victim, received transfer of KRW 12 million from the victim around October 31, 2017, and stated the facts charged in the indictment from September 28, 2017 as “from September 29, 2017,” but in light of the entries in the list of crimes in the separate sheet, the Defendant stated that “from September 29, 2017,” the facts charged in the indictment from September 28, 2017.