The non-payment of settlement funds involving Lee Seung-gi and others puts Cha Ga-won at a crossroads of arrest... "Deeply regrettable" [Star Issue]

*This content was translated by AI.

Cha Ga-won, chairman of the Pia Group and CEO of One Hundred Label, is facing allegations of fraud in the hundreds of billions of won, as police have applied for an arrest warrant against Cha (CEO).

According to NEWS1 on the 15th, the Financial Crime Investigation Division of the Seoul National Police Agency recently applied for an arrest warrant against Cha (CEO) on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes. The Prosecution Service is currently reviewing whether to file the arrest warrant request.

Cha (CEO) is accused of proposing joint ventures to companies in the relevant industry under the guise of intellectual property (IP) business for affiliated entertainers, receiving large upfront payments, yet failing to proceed with the business.

Police have been investigating the case by merging three separate complaints filed against Cha (CEO). According to industry sources, the total amount claimed as fraud losses is around 300 billion won.

Earlier, on April 8, police searched and seized items at One Hundred Label. On the 6th and 7th of last month, Cha (CEO) was summoned as a suspect for questioning. It appears the police determined that an arrest investigation was necessary based on the analysis of seized materials and the content of the suspect's interrogation.

In this regard, Cha (CEO)'s side denies the allegations. They have argued that this suspicion is part of a 'hostile mergers and acquisitions (M&A) operation' targeting One Hundred Label.

Furthermore, Cha (CEO)'s side submitted a petition for reconsideration to Seoul Central District Court on the 22nd of last month, claiming that during the search and seizure, police seized items such as KakaoTalk conversation records beyond the scope specified in the warrant and failed to properly guarantee the right of defense counsel participation during the forensic selection process.

Hyun Dong-yeop, a lawyer representing Cha (CEO), stated regarding the arrest warrant application, "It is deeply regrettable that an arrest warrant was applied for when illegality was confirmed during the search and seizure, leading to a petition for reconsideration." He added, "We plan to file a complaint with the National Human Rights Commission on the 16th, citing human rights violations during the investigation process, against the investigation team leader and investigators."

Meanwhile, artists under Cha (CEO), including Lee Seung-gi, EXO unit EXO-CBX (Chen, Baekhyun, Xiumin), group VIVIZ, and Lee Mu-jin, have notified Cha (CEO) of termination of their exclusive contracts due to reasons such as non-payment of settlement funds.

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*This content was translated by AI.