Defendants shall be punished by each fine of KRW 5,000,000.

Defendant

If A does not pay the above fine, it shall be 100.

Punishment of the crime

[criminal power] Defendant A was sentenced to two years in Suwon District Court on February 16, 201 to imprisonment with prison labor for a violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud), and the above judgment was finalized on September 8, 2011.

【Criminal Facts】

Defendant

A is the actual representative of Defendant B Co., Ltd. in Guro-gu Seoul Metropolitan Government D Building 201 and 202, and Defendant B is a corporation established for the purpose of manufacturing and selling functional health foods.

1. No person who has committed an act of making any monetary transaction without any transaction of goods, etc., or making any actual monetary transaction in disguise of any transaction of goods, etc., using a multi-level marketing organization or any similar multi-level marketing organization that is comprised of persons who have joined such organization by phases

Nevertheless, on September 30, 2010, the Defendant established a multi-level marketing organization B, and hired E, etc. as the head of group in charge of the business of soliciting multi-level marketing salespersons, and deposited it into B on three occasions on September 30, 2010, with the victim F (the age of 78) who registered as a multi-level marketing salesperson and received KRW 30 million per month salary without any transaction of goods, etc., and received KRW 7 million under the same name as of October 8 of the same year, including the receipt of KRW 16 million under the same name and KRW 16 million, respectively.

As a result, the Defendant conspired with E, etc. to conduct money transactions without trading goods, etc. or to conduct money transactions only by pretending to trade goods, etc.

2. As stated in paragraph (1), Defendant B, in collusion with E, etc., the actual representative of the Defendant Company, as set forth in paragraph (1), committed an act of only conducting money transactions without trading goods, etc. or making actual monetary transactions under the pre-sale organization in collusion with E, etc.

(i) the evidence;