An idol group’s head CEO has been arrested for fraud
The CEO of an entertainment agency has been charged with fraud and is currently undergoing further investigations to his crimes.
GNI Group’s CEO Seong Cheol-ho was charged with fraud charges and is currently being investigated. GNI Group is the head company and has a subsidiary called GNI Entertainment.
GNI Entertainment currently has idol group MADTOWN, actor Jeong Si-Hyun, actresses Shin Eun-Je, Min Jae-Hee and Seo Jung-Hee signed to the agency.
On February 22, Seong Cheol-ho was arrested and questioned in Songpa Police Station regarding his charges. The CEO promised investors high returns and funneled funds from the company to juggle the amount of promises and stakes for personal gain.
Seong Cheol-ho is facing a total of 32 counts of criminal charges and these include but are not limited to fraud and foreign exchange violations.
As a result of the arrest of the sudden arrest of the GNI CEO, the former J. Tune Entertainment idol group, MADTOWN’s future inside the industry is at crossroads. MADTOWN had their contracts fully transferred from J. Tune Entertainment to GNI on January 2017.
The media tried to make contact with the company to get an official statement regarding the arrest of the CEO, but all intents have been in vain.