The defendant is not guilty. The summary of the above judgment shall be publicly notified.

1. Facts charged;

A. The Defendant, from around September 10, 2012, recruited 15 members of the fraternity from around September 10, 2012, the Defendant: (a) operated the so-called “numbering system” in the manner that, if each fraternity pays an amount of KRW 2,00,000 per month, it collected the amount of KRW 30,000 per month; and (b) paid the amount of KRW 30,000 per month to the fraternity members; and (c) paid the amount of KRW 30,000,000,000 per month by adding interest to the pre-determined amount.

On September 10, 2012, the Defendant made a false statement to the victim C at the Defendant’s home located in Gangnam-gu Seoul, Gangnam-gu, stating, “The Defendant would pay KRW 35 million to the Victim C, who signed the fraternity and paid KRW 200,000 per month if he/she paid the fraternity in 200,000 per month.”

However, at the same time, the Defendant had not been able to pay a proper guidance to the members of other accounts while operating the 50 number limit at the same time. In such a case, while operating the so-called “funching” ceremony, such as joining the said guidance system to the new number limit and paying a unpaid guidance from other members of the fraternity, etc., the Defendant thought that it would be used to pay the fraternity collected from other members of the fraternity to which the victim joined. On the other hand, the Defendant had no financial ability to pay the fraternity normally because the other members of the other fraternity operated by the Defendant did not pay the fraternity at the time on September 2012, the Defendant had no intention or ability to pay the fraternity normally even if he received the fraternity from the victim.

As such, the Defendant, by deceiving the victim as such, received 2 million won from the victim to the account under the name of his/her father E in the name of his/her father on September 10, 2012, and received the transfer from the victim to the account under the name of his/her father E in addition to attached crime list 1.