Entertainment CEO Arrested on Fraud Charges Totaling $21.5 Million

Cha Ga-won, the chairman of PIAK Group and CEO of entertainment agency One Hundred, has been arrested and handed over to prosecutors on charges of fraud amounting to roughly 30 billion won (approximately $21.5 million USD).

The Seoul Metropolitan Police Agency's financial crime investigation unit announced on August 7 that Cha is accused of defrauding a company, Nomus, of 24.2 billion won. The alleged fraud involved proposing a business venture that utilized the intellectual property rights of artists under his agency, One Hundred. After securing the advance payment, Cha is accused of failing to implement the promised business.

Further allegations include Cha receiving 5.4 billion won in security deposits for fictitious lease agreements on properties he co-owned with acquaintances. Police believe the total scale of the alleged fraud reaches approximately 30 billion won.

This is not the first time authorities have sought Cha's arrest. Police had applied for arrest warrants twice in June, but prosecutors returned them, citing the need for further investigation and clarification of the charges. After a supplementary investigation, police submitted a third warrant request on August 22. Prosecutors then conducted a preliminary interview with Cha before requesting an arrest warrant, which was granted by the Seoul Central District Court on August 3 after a hearing, citing the risk of evidence destruction.

Cha Ga-won has reportedly denied all accusations during police investigations. His legal team has argued that these allegations surfaced as part of a hostile takeover bid against One Hundred. The case is now with the prosecution for further proceedings.