2012 Highest 1104 Computer, etc. Fraud

1. A (46***** -1), agriculture

2. B (44***** -1), non-permanent,

3. C (66 **** -1), real estate sales business.

50,000,000

Law Firm Squa, Attorneys Lee Tae-hoon and Lee Sung-hun (for the Defendants),

October 5, 2012

Defendant A shall be punished by imprisonment with prison labor for 10 months and 2 months, by imprisonment for Defendant B with prison labor for 1 year and 4 months, by imprisonment with prison labor for 1 year and 1 year and 1 year and 2 months for a crime as indicated in the judgment of Defendant C, respectively.

Criminal facts

[Personal Relationship and Criminal Records]

From February 2, 2007 to November 26, 2009, Defendant A overall control over the business of the above AFF as the president of the AFF. From April 3, 2006 to April 2, 2010, Defendant A overall control over the credit business, economic business, credit card business, etc. of the above AFF as the standing director of the AF, and Defendant C, as the planning director of XF from November 21, 2006 to November 21, 2009, took charge of the planning, general affairs, and credit management business of the above AFF.

On August 20, 2010, Defendant A was sentenced by the Seoul High Court for one year and six months to a crime violating the Act on the Aggravated Punishment, etc. of Specific Crimes (Bribery). The judgment became final and conclusive on January 27, 2011, and the paroled on May 9, 2011 during the execution of the sentence in the Ansan Prison, and the parole period passed on May 26, 201.

On August 20, 2010, Defendant C was sentenced to imprisonment of one year and six months for a violation of the Act on the Aggravated Punishment, etc. of Specific Crimes (Bribery) by the Seoul High Court on August 20, 201, and the judgment became final and conclusive on January 27, 201, and was released on May 9, 201 during the execution of the sentence in the Ansan Prison, and the parole period expired on May 26, 201.

[Criminal Facts]

1. Fraud by the use of computers, etc. by the Defendants

around December 2008, the Defendants anticipated the aggravation of the profits from the credit business due to the CD interest rate loan products, due to the rapid decline in the CD interest rate due to the financial crisis that occurred around the time.

The Defendants, around January 2009, conducted a meeting of executive members at the head office of XAF headquarters in the Dong ** the Gu *, Defendant C, the president of the cooperative, and Defendant B, the executive director of the cooperative, “in order to prevent management loss due to the decline in the CD interest rate, there is only a method of raising additional interest on the CD interest rate-based loan products”. Defendant A, the president of the cooperative, Defendant C, and Defendant B, the executive director of the cooperative. By doing so, Defendant A, and B, the Defendants agreed to raise the profits of the agricultural cooperative by arbitrarily raising the interest of the loan customers at a higher level than the interest rate on the CD interest rate without the consent of the loan customers. Defendant B instructed Defendant C to convene an emergency branch office.

On the following day, at the meeting of the head office XF Kim, which was gathered at the meeting of the head office XF, *, and the heads of nine branch offices, Defendant C will raise the surcharge on the CD interest loan product. Defendant B will raise the rate of the surcharge on the CD interest loan product. Defendant B will have changed this situation. Defendant A will take measures to the extent that the civil petition does not occur. Defendant A ordered the above branch office and the credit administrator of the main office to arbitrarily raise the surcharge without the consent of the lending customer.

Accordingly, ** the creditless Kim Jong-soo at the head office of X-FF office around January 209, * the credit2 division manager at the time of loan * and loan agency * strict and loan agency * It shall issue an order to arbitrarily raise the additional interest rate of the CD-feit loan *** under the direction of the victim *** * **** 601266 *** 6) the additional interest rate of 1.74% higher without the consent of the victim 1.6% higher than the interest rate of 60, 150,000, 200 from the loan account to 209.36, 209, 1.636, 200, 1.64, 200, 1.636, 200, and 1.6,000 from the original office of the No.FF office without the consent of the victim.

As a result, the Defendants, in collusion with creditless Kim** and nine branch heads from January 2009 to November 201, 201, input an illegal order into a computer or any other information processing device, such as a computer, and obtained data processing, thereby obtaining a total of KRW 1,865,560,469 from 628 loan accounts of 573 victims (limited to items 1 to 1348 from January 27, 201 in the annexed list of crimes).

2. Fraud by using computers, etc. of Defendant A and C;

The Defendants, in collusion with the co-offenders as described in paragraph (1) above, acquired the money, such as the date of the column for application of the changed interest rate among the annexed list of crimes in the same manner as the stated in items 1349 through 1672, which was after January 28, 201.

Summary of Evidence

Omission

Application of Statutes

1. Article applicable to criminal facts;

Articles 347-2 and 30 of the Criminal Act (Selection of Imprisonment)

1. Aggravation of repeated crimes (Defendant A and C);

Article 35 of the Criminal Code

1. Handling concurrent crimes (Defendant A, C);

Articles 37 (latter part) and 39 (1) of the Criminal Act

1. Aggravation for concurrent crimes;

The reasons for sentencing under the former part of Article 37, Article 38(1)2, and Article 50 of the Criminal Act are as follows: (a) the Defendants collected unfair interest from customers by arbitrarily raising the loan interest rate that is the basis of all economic activities; (b) the distribution of funds, which are the basis of all economic activities, is in charge of the distribution of funds; and (c) each economic entity of the society is able to maintain smooth economic activities in Korea by taking out and lending money with the trust of financial institutions. If each economic entity is in a situation where it is impossible to trust a financial institution, not only the financial order, but also all economic activities of the Republic of Korea can not be achieved; and (d) in such a case, the suffering that the public is suffering.

Nevertheless, the Defendants were aware of the substance as executive officers of the financial institution and went to commit the instant crime. Such possibility of criticism may not be sentenced to punishment corresponding to the nature of the crime against the Defendants in full view of the circumstances such as the method and scale of the commission of the principal office and branch offices and the number of victims and the amount of damages.

Therefore, each of the Defendants is sentenced to punishment for each of the Defendants. The Defendants’ roles, the degree of participation, and the period during which each of the Defendants was involved in the instant crime, and the structural problems in designing the original loan product that XF was not a specialized financial institution, the Defendants failed to prepare a device to avoid risks resulting from these fluctuations in interest rates, the Defendants did not commit the crime for personal gain, the problems after the crime was committed by themselves to the investigative agency, and the victims were voluntarily surrendered to the investigation agency, and the unfair money collected to the victims were returned. Many victims wanted to take advantage of the Defendants’ age, experience, home environment, and reflectivity.

It is so decided as per Disposition for the above reasons.

Judges Park Jong-chul