Police have summoned Cha Ga Won, CEO of p_Arc Group and One Hundred Label, for questioning as a suspect in a fraud case involving approximately 30 billion won ($20 million).
This marks the first time she has been formally investigated as a suspect. She was questioned on June 6th and 7th.
According to Newsis on May 14th, the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency summoned Cha, who is suspected of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, for questioning on June 6th and 7th.
Cha is accused of seeking business partnerships from industry insiders by leveraging artists under her entertainment company, receiving advance payments and then failing to proceed with the projects.
The police are currently investigating three consolidated complaints filed against Cha, with the alleged fraud amount totaling around 30 billion won ($20 million).
During the investigation, Cha reportedly denied all charges. She reportedly has argued that the allegations surrounding One Hundred were raised with malicious intent during a hostile takeover attempt.
She further stated that she had sufficient intent and capacity to repay the advance payments, but the company’s image and financial situation deteriorated due to malicious reports about the company.
Police searched the offices of Big Planet Made Entertainment, a subsidiary of One Hundred, on May 3rd as part of the ongoing investigation. Based on seized materials, they are now investigating Cha’s financial flow and the overall business contract process.
Meanwhile, Cha is also involved in disputes with artists under One Hundred regarding unpaid settlements. On May 21st, she was sued by nine members of the group THE BOYZ for alleged embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes.
Cha runs several entertainment labels, including INB100, home to EXO-CBX, Big Planet Made Entertainment, associated with Lee Seung Gi, and One Hundred Label, home to THE BOYZ. Currently, major artists from these labels are involved in lawsuits seeking to terminate their contracts.
>> Yong Junhyung Notifies Agency of Contract Termination, Says ‘Trust Has Been Broken’
In the meantime, watch trending K-dramas for free on Amasian TV.
Source (1)
