Cha Ga-won side: "Received 24.2 billion won, but there was no deception or intent" — Reaffirms denial of charges [Star Scene]

*This content was translated by AI.View Original

At the second trial for Cha Ga-won, Chairman of Peak Group and CEO of entertainment agency One Hundred Label, who was indicted on charges of fraud involving approximately 30 billion won, his side stated that there was no deception in the alleged misappropriation and no criminal intent.

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

On this day, Cha Ga-won's lawyer conveyed a position to the effect that "while we acknowledge receiving the advance payment, there was no deception and no intent" regarding charges such as misappropriation. Subsequently, Cha Ga-won responded that he agreed with this stance.

Previously, the Tax Crime Investigation Division of the Seoul Central District Prosecutors' Office indicted Cha Ga-won on August 25, and the Financial Crime Investigation Team of the Major Investigation Division at the Seoul Metropolitan Police Agency transferred him to the prosecution service in custody 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 agency to Knowmerce Inc., signing a contract, and receiving an advance payment of 24.2 billion won, but failing to actually carry 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 (deposit-based lease) contracts on houses owned by himself and acquaintances, receiving a deposit of 5.4 billion won, but failing to fulfill the contract. However, Cha Ga-won's side denied the charges regarding this allegation, characterizing it 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 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 Taemin's performance contract to Knowmerce's vice chairman. He also defrauded the same amount by promising to grant a merchandise distribution contract (for Taemin). Furthermore, he defrauded 12.1 billion won by promising to grant a merchandise production and distribution contract for EXO-CBX. There are also charges of defrauding 1.1 billion won through false promises regarding business related to fromis_9."

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

Cha Ga-won's lawyer stated regarding the charges, "We deny all facts alleged in the indictment." However, as time is needed to review relevant records, opinions on evidence and such are expected to be presented at the next hearing.

Subsequently, Cha Ga-won's side requested the court to dismiss the compensation order applied for by Ms. Jang (a victim of the alleged jeonse deposit misappropriation).

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

On the other hand, Ms. Jang's side countered, "(Ms. Jang) was actually defrauded," adding, "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 the former chairman of real estate development company Peak Group and co-founded One Hundred Label with MC Mong in 2023. Artists under his agency included The Boyz, Lee Seung-gi, Lee Mu-jin, VIVIZ, and EXO-CBX, but they filed a series of lawsuits including termination of exclusive contracts due to issues with unpaid settlement funds.

Chairman Cha is also known to have filed a lawsuit demanding the return of a loan of 12 billion won against MC Mong, who left the company after conflicts.

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*This content was translated by AI.View Original