Cha Ga-won, the CEO of One Hundred Label, has been transferred to prosecutors while in custody on charges of fraud amounting to 300 billion won.
The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency sent Cha to the Seoul Central District Prosecutors' Office on August 7, facing charges under the Act on the Aggravated Punishment of Specific Economic Crimes.
Cha is accused of proposing a business utilizing the intellectual property (IP) of celebrities under One Hundred Label to Nomus, signing a contract, and receiving an advance payment of 24.2 billion won without fulfilling the actual business obligations.
During the investigation, police determined that Cha concealed the fact that a prior contract with another company was still active while entering into a double contract with Nomus, and was unprepared to execute the business. They also found indications that Cha, already in significant debt, initiated the entertainment agency business and engaged in contract splitting to manage the debts.
Police deemed it necessary to conduct a custodial investigation and applied for arrest warrants twice in June, but the prosecution returned them, requesting further investigation.
Following consultations with the prosecution, police conducted additional investigations, including tracking Cha's accounts and analyzing contract relationships, which revealed evidence of contract splitting for debt repayment. They submitted a third arrest warrant application on July 22. The prosecution, having found sufficient evidence of Cha's wrongdoing, filed for the arrest warrant on July 28.
The Seoul Central District Court held a warrant review for Cha on August 3 and issued the warrant, citing concerns over potential evidence destruction.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.