Sung Chul Ho, CEO of GNI Group, has been arrested for fraud. The CEO of MAD TOWN's agency was recently questioned by Songpa Police Department for multiple criminal offenses.
CEO Sung has been charged with fraud, including scamming investors, foreign exchange violations, and 32 other criminal offenses, Allkpop reported. The CEO allegedly promised high returns and funneled funds for the investors for his personal gains. The local law enforcement officers are continuing to investigate CEO Sung's case. GNI Group is the head company of subsidiary company called GNI Entertainment.
The entertainment agency is the home of idol group MAD TOWN, actor Jeong Si-Hyun, and several actresses such as Min Jae-Hee, Seo Jung-Hee, Shin Eun-Jee, and Jeong Si-Hyun. This is clearly a rock bottom for the agency's executive and its artists. MAD TOWN apparently has it the worst since the group has just joined in the agency after J. Tune Camp stopped the operations.
However, J. Tune Camp denies that the company is in great danger. The agency was rumored to have lost a majority of its employees. They claimed the reason why the company was going under is because MAD TOWN departed from the agency and members of MBLAQ are currently enlisted in the military service.
The agency that houses idol group MBLAQ expressed that it's unfortunate if MAD TOWN had to leave the agency to sign a new contract with another agency. J Tune Camp also stated to plan a debut with a new artist. On January 2017, MAD TOWN had their contracts transferred to GNI Entertainment.
This scandal has apparently led to another issue: how MAD TOWN's future will be in the agency after this case kicks in? It's another mystery to solve since the company hasn't released any official statements regarding its executive's scandal. Hopefully, this case can be resolved in the best way possible so that the talented artists who joined in will not be affected.
