'In custody' Cha Ga-won CEO: Second trial over 30 billion won fraud charges opens today (the 3rd)

*This content was translated by AI.View Original

The second trial will resume for Cha Ga-won, chairman of Piak Group and CEO of entertainment agency One Hundred Label, who was indicted in custody on charges of a 30 billion won fraud.

The Criminal Division 23 of the Seoul Central District Court will hold the second hearing in the case against Cha Ga-won for violating the Act on Aggravated Punishment of Specific Economic Crimes (fraud).

Previously, the Tax Crime Investigation Department of the Seoul Central District Prosecutors' Office indicted Cha Ga-won in custody on August 25. The Financial Crime Investigation Team of the Major Investigation Division at the Seoul Metropolitan Police Agency had sent Cha Ga-won to the Prosecution Service for arrest on the 7th of the same month.

Cha Ga-won is suspected of proposing a business leveraging the intellectual property (IP) of artists under his company's management to Knowmerce Inc., signing a contract, and receiving 24.2 billion won in advance payments without actually carrying out the business. The scale of the damage is reported to be approximately 30 billion won.

He is also suspected of promising to sign mutual jeonse (lump-sum deposit lease) contracts on houses owned by himself and an acquaintance, receiving a deposit of 5.4 billion won, but failing to fulfill his side of the contract. However, Cha Ga-won's side denied the charges, characterizing the allegations as part of a hostile mergers and acquisitions (M&A) plot against One Hundred Label.

At the previous first trial, Cha Ga-won appeared in court while in custody, wearing black clothing and a mask.

The prosecution explained, "The defendant defrauded 5.5 billion won under the pretext of an advance payment by promising to give Knowmerce's vice chairman a performance contract for his affiliated artist Taemin. He also defrauded the same amount by promising a merchandise distribution contract (for Taemin). Furthermore, he defrauded 12.1 billion won by promising a merchandise production and distribution contract for EXO-CBX. He is also suspected of defrauding 1.1 billion won through false promises to grant businesses related to fromis_9."

The prosecution further explained that Cha Ga-won defrauded 5.2 billion won by having his affiliated artists take out jeonse fund loans and promising them move-in arrangements, among other methods.

Cha Ga-won's defense attorney stated regarding the charges, "We deny all facts alleged in the indictment." However, noting that time is needed to review relevant records, they plan to present their opinions on evidence at the next hearing.

Subsequently, Cha Ga-won's side requested the court to dismiss the compensation order filed by Ms. Jang (a victim of jeonse deposit fraud) on the 1st of last month.

In response, Cha Ga-won's side argued, "(Ms. Jang is) a person with the right of succession who has priority under the Housing Lease Protection Act, so it is questionable whether she can be considered a victim." They added, "Since repayment is possible through the villa, we maintain that neither the deception nor the claim for damages should be upheld. It seems the explanation regarding the relationship between the deceptive act and the defrauded amount is insufficient."

On the other hand, Ms. Jang's side countered, "(Ms. Jang) was actually defrauded," stating, "The value of the villa in question is not high, and a significant amount has been secured by prior-ranking claims and mortgages. If cashed out through auction or similar means, the amount the victim can recover would be small."

Cha Ga-won is a former chairman of real estate development company Piak Group and co-founded One Hundred Label with MC Mong in 2023. His affiliated artists included The Boyz, Lee Seung-gi, Lee Mu-jin, VIVIZ, and EXO-CBX, but they filed successive lawsuits, including termination of exclusive contracts, over issues of unpaid settlement funds.

It is also known that Cha Ga-won filed a lawsuit demanding the return of 12 billion won in loans against MC Mong, who left the company after conflicts.

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*This content was translated by AI.View Original