'Detained' Cha Ga-won, CEO, Appears Wearing Mask… Denies 'Fraud Charges Involving 30 Billion Won' [Star Scene] [Comprehensive Report]

*This content was translated by AI.View Original

Cha Ga-won, Chairman of Piak Group and CEO of the entertainment agency One Hundred Label, who was detained and indicted on fraud charges involving approximately 30 billion won,

On the morning of the 13th, Criminal Division 23 (Presiding Judge Oh Se-yong) of the Seoul Central District Court held the first trial session for Cha Ga-won’s case regarding violations of the Act on Aggravated Punishment of Specific Economic Crimes (fraud).

On this day, Cha (CEO), who is currently in custody, appeared in court wearing a black top and bottom outfit along with a mask.

The prosecution stated, "The defendant (Cha (CEO)) defrauded the vice-president of Knowmerce of 5.5 billion won under the pretense of providing performance contracts for his affiliated artist Taemin, and defrauded the same amount by promising to provide merchandise distribution contracts (for Taemin). Additionally, he defrauded 12.1 billion won by promising to provide merchandise production and distribution contracts for EXO-CBX. He is also suspected of defrauding 1.1 billion won through false promises regarding businesses related to fromis_9."

It was further explained that Cha (CEO) defrauded 5.2 billion won by having his affiliated artists take out loans for full-rent deposits and promising them move-in arrangements, among other methods.

The defense attorney for Cha (CEO) 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, the side of Cha (CEO) requested the court to dismiss the compensation order applied for by Ms. Jang (a victim of full-rent deposit fraud) on the 1st of last month.

In response, the side of Cha (CEO) argued, "(Ms. Jang is) a person with the right of succession who has opposing power 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, 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 amount defrauded is insufficient."

On the other hand, the side of Ms. Jang 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. In the event of cashing out through auction or similar means, the amount the victim can recover is not substantial."

Previously, the Tax Crime Investigation Division of the Seoul Central District Prosecutors' Office detained and indicted Cha (CEO) on August 25, and the Financial Crime Investigation Team of the Major Investigation Division at the National Police Agency transferred Cha (CEO) to the Prosecutors' Office in custody on the 7th of the same month.

Cha (CEO) is suspected of proposing a business utilizing the intellectual property (IP) of his affiliated artists to Knowmerce Inc., concluding a contract, receiving an advance payment of 24.2 billion won, and subsequently failing to actually carry out the business. The scale of the damage was reported to be approximately 30 billion won.

Furthermore, he is also suspected of promising to enter into mutual full-rent contracts on houses owned by himself and acquaintances, receiving a deposit of 5.4 billion won, but failing to fulfill the contract himself. However, the side of Cha (CEO) denied the charges regarding this suspicion, claiming it was part of a hostile mergers and acquisitions (M&A) conspiracy against One Hundred Label.

Cha (CEO), who is a former chairman of real estate development company Piak Group, co-founded One Hundred Label with singer MC Mong in 2023. 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 due to issues with unpaid settlement funds.

Additionally, it is known that Cha (CEO) filed a lawsuit demanding the return of a loan amounting to 12 billion won against MC Mong, who left the company after conflicts.

Meanwhile, the next trial for Cha (CEO) will continue on November 3.

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*This content was translated by AI.View Original