Police Seek Arrest Warrant for CEO Amid $30 Million Fraud Allegations
Authorities have requested an arrest warrant for the CEO of Chaga-Won, also known as OneHundred Red Label, who is facing allegations of significant fraud totaling approximately 30 billion Korean Won (around $30 million USD).
Details of the Allegations
According to investigative sources, the Seoul Metropolitan Police Agency’s financial crime investigation unit recently submitted the warrant request to the Seoul Central District Court. The charges include fraud and violations of the Act on Special Cases Concerning the Aggravated Punishment, etc. of Specific Economic Crimes.
It is alleged that the CEO presented a business proposal involving the intellectual property (IP) of affiliated entertainers. After securing contracts, the individual reportedly received advance payments totaling over 24 billion Korean Won (approximately $24 million USD). However, investigations suggest that the proposed business ventures were never materialized.
Further accusations include a separate scheme where the CEO allegedly promised to enter into a lease agreement for properties owned by an acquaintance. This arrangement reportedly resulted in the collection of 5.4 billion Korean Won (around $5.4 million USD) in deposit funds. However, the CEO is accused of failing to uphold their end of this agreement as well.
Investigation Progress
The investigation gained momentum in April when law enforcement conducted a search and seizure at Big Planet Made Entertainment, a subsidiary of OneHundred Red Label. Subsequently, on the 6th and 7th of the following month, the CEO was questioned as a person of interest.
Reports indicate that the CEO denied the allegations during the police questioning. The defense team has also voiced strong opposition to the arrest warrant request.
Defense Response
A legal representative for the CEO stated that the warrant request is particularly concerning given that the legality of the search and seizure process, which led to the suspension of the case, has been questioned. The representative further indicated plans to file a petition with the National Human Rights Commission of Korea to investigate potential human rights violations during the investigation.
