Defendant

A Imprisonment for six years, Defendant B, C, and D, and Defendant E for three years, Defendant F, and G, respectively.

Punishment of the crime

Defendant

A worked as a representative director of S Co., Ltd. (hereinafter “S”) which is a multi-level marketing business entity located in Gangnam-gu Seoul Metropolitan R from February 2, 2009 to April 2014 and has overall control over the recruitment of salespersons and the payment of bonuses.

Defendant

B, from April 22, 2013, since S's representative director, it has overall control over the affairs such as recruitment of salespersons and payment of bonuses.

Defendant

C worked as the vice president from January 2009, and has overall control over the affairs such as recruitment of salespersons and payment of support allowances.

Defendant

D was employed as a replacement director of S around October 201 and was in charge of accounting, financial management, etc., and was engaged in the management, return management, accounting, etc. of S as a general director from January 1, 2013 to August 1, 2013.

Defendant

E operated U (a trade name V before the change; hereinafter referred to as “U”) from around November 201, 2012, from around March 201, E supplied tidal Tri, electric reed, etc. to S, and was appointed as the president at the temporary general meeting of shareholders of S around October 25, 2013. From that time, E took overall control of all the affairs such as sale of S’s goods, fund management, payment of allowances, etc. until January 29, 2014.

Defendant

F made use of S'X Group Chapter's marketing franchise, important official matters, allowances and trademark, etc. to encourage S to pay the purchase cost of goods by publicizing that if you purchase goods in X Group, they can receive more than the purchase cost of goods than the goods.

Defendant

G played the same role as Defendant F by taking image lectures at the S head office as S’s “GT Group Head” and the education chairperson.

1. The Defendants’ violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) and fraud S shall use the sales amount of less than 35% according to the sales performance points set in advance, if they purchase goods exceeding a certain amount and register as sales salespersons.