Prosecution Requests Arrest Warrant for Entertainment Agency CEO Chagawon on Multi-Billion Won Fraud Charges
Charges Under the Act on the Aggravated Punishment of Specific Economic Crimes, Including Fraud
Further Investigation Conducted After Two Previous Warrant Applications Were Returned, Including Account Tracing
The prosecution has filed an arrest warrant for Chagawon, Chairman of Piac Group and CEO of entertainment agency One Hundred Label, who is accused of fraud amounting to over KRW 30 billion.
According to the legal community on the 28th, the Seoul Central District Prosecutors' Office requested an arrest warrant for Chairman Cha on this day, suspecting violations including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.
This request for an arrest warrant follows the application for the third arrest warrant submitted by the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency's Metropolitan Investigation Division on July 22.
Chairman Cha is suspected of proposing a business utilizing the intellectual property (IP) rights of artists belonging to his entertainment agency to the corporation Nomus, signing a contract, and receiving an advance payment of KRW 24.2 billion without actually carrying out the business.
The police believe that Chairman Cha concealed from Nomus the fact that he had a prior contract with another company that did not appear likely to end soon, entered into double contracts, and was not prepared to execute the proposed business.
Previously, the police had applied for arrest warrants for Chairman Cha twice last month; however, the prosecution returned the applications, requesting further investigation.
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During the process of the third application for an arrest warrant, it is understood that the prosecution and police collaborated to conduct additional investigations, including tracing bank accounts and analyzing contractual relationships. Authorities uncovered indications that Chairman Cha launched the entertainment agency while having significant debts and subsequently used contract splitting methods to repay the debts.
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