Chairman Chagawon Referred to Prosecution in Custody for 30 Billion Won Fraud Allegation

Received Advance Payment But Failed to Fulfill Business Obligations

Chairman Chagawon of Piac Group and CEO of the entertainment agency One Hundred Label, who is under suspicion of fraud amounting to approximately 30 billion won, has been handed over to the prosecution while in detention.

The Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency announced on the 7th that they referred CEO Cha to the prosecution under arrest on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, among other allegations.

Chagawon, Chairman of Piak Group and CEO of entertainment agency OneHundred Label, appeared at the Seoul Central District Court in Seocho-gu, Seoul, on the 3rd for a pre-arrest detention hearing (warrant review). Photo by Yonhap News

According to the police, CEO Cha is accused of proposing a business using the intellectual property (IP) of an artist managed by his entertainment agency to Nomus Co., Ltd., signing a contract, receiving 24.2 billion won as an advance payment, and then failing to fulfill the business obligations.

The police believe that CEO Cha entered into a separate contract without notifying Nomus, even though a contract he had with another company would not have ended in the short term. They also suspect that the contract with Nomus was made despite a lack of substantial preparation to carry out the business.

Separately, CEO Cha is also accused of proposing a mutual jeonse (long-term lease) contract involving residential properties with an acquaintance, receiving a deposit of 5.4 billion won, and then failing to honor his end of the agreement.

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