Youtuber Lee Jin Ho explains behind stories regarding suspicions of Attrakt CEO Jeon embezzling 2 billion of FIFTY FIFTY investment
Attrakt CEO Jeon Hong Joon sued The Givers executives who are also involved in FIFTY FIFTY’s contract dispute.
On July 21st, Attrakt explained, “CEO Jeon Hong Joon filed a complaint with the Seoul Gangnam Police Station against Baek of The Givers on charges of obstructing business and damaging electronic records”, adding “We had sent a takeover request to Baek is an executive of The Givers, the service company working with FIFTY FIFTY, since May 10th but it was not until the 16th of last month he handed over the manager’s account with six employees’ e-mails having been deleted.”
On the same day, reporter-turned-Youtuber Lee Jun Ho revealed the backstory related to the allegation raised by FIFTY FIFTY members and CEO Ahn Sung Il that CEO Jeon did not use 2 billion won out of the 6-billion-won investment from Interpark.
Lee Jin Ho explained, “Interpark gave an investment of 9 billion won to CEO Jeon in August 2020. According to Attrakt, they spent 6 billion won on FIFTY FIFTY. However, in reality, only 4 billion was used, and the remaining 2 billion was another investment. Because of this, FIFTY FIFTY members and CEO Ahn Sung Il raised the suspicion that CEO Jeon had embezzled the fund.”
Lee Jin Ho continued, “From the experience of CEO Jeon, who had created several groups and failed many times before, he knew how to spend the money. If he received the full 6 billion won at once, he might spend all of it, and end up lacking money for album production”.
He added, “CEO Jeon decided to receive only 4 billion won first and take the remaining 2 billion won later when it was absolutely necessary for the final stage of the album production. He actually spent the first 4 billion won on covering accommodations, lessons, and other expenses for the members, and then received 2 billion won to produce two albums. There was only a slight delay in the process, but Ahn Sung Il and the members suspected that CEO Jeon betrayed them”.
Earlier on the 5th, Seoul Central District Court’s Civil Agreement Division 50 conducted the first hearing for the exclusive contract suspension lawsuit filed by FIFTY FIFTY against their agency Attrakt. At the court, FIFTY FIFTY’s side argued that Attrakt violated the obligation to provide settlement data as well as mental and physical health support for the members. They also claimed that Attrakt lacked the ability to support their entertainment activities.
On the other hand, Attrakt insisted that they even used the CEO’s assets and funds, amounting to 8 billion won. They refuted the claims, saying it was not a small investment so it was excessive to criticize the company for incapability.
Later, on the 7th, Attrakt filed an additional criminal complaint against The Givers, saying, “While organizing the acquisition and transfer documents, Attrakt discovered an embezzlement case conducted by The Givers without prior consultation with our company. Upon verification, we confirmed that The Givers had forged false service contracts for embezzlement”.
Source: Wikitree
