Won Hundred Label Cha Ga-won, the CEO of Won Hundred Label, was arrested on fraud charges.
according to legal sources, on the 3rd, Director General Bu Dong-sik, the judge in charge of warrants at the Seoul Central District Court, held a pre-arrest suspect interrogation (warrant hearing) for Cha Ga-won, who is accused of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, and after the hearing issued an arrest warrant saying "there is a concern of evidence destruction."
The police judged that Cha Ga-won's arrest was necessary and applied for an arrest warrant twice, but the prosecution requested supplementary investigation and rejected the applications. after conducting additional investigations, the police applied for a third arrest warrant, and the prosecution requested an arrest warrant on the 28th of last month.
Cha Ga-won is accused of proposing a business using the intellectual property (IP) of artists belonging to the entertainment agency he runs to the company Knowmerce, signing a contract, receiving an advance payment of 24.2 billion won, and then failing to carry out the actual business.
The police say Cha Ga-won entered into a double contract with Knowmerce while hiding the fact that a contract he had previously made with another company did not appear likely to end soon, and that he was not prepared to perform the business. they also say Cha Ga-won began the entertainment agency business while in debt and that investigators detected signs of rolling over debt by splitting contracts to cover liabilities.
Cha Ga-won denies all such allegations. when the arrest warrant was previously requested, Cha Ga-won's legal representative said the prosecution "appears to have agonized over various matters, but on the facts and in law, fraud is not established in this case and there are many disputed points," and added, "we plan to demonstrate to the court that there are no sufficient grounds for detention, and we will seek a dismissal of the arrest warrant by the court to end the police's excessive warrant requests and investigation."
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