[News] 110315 Investor in JYJ Concert Sues Rights-Holders for Fraud immediately after the hearing was over, articles like the below were plastered all over the Korean web:
Investor in JYJ Concert Sues Rights-Holders for Fraud
The Plaintiff Park XX sued Kim XX and C-JeS’s Director Paek XX, Warner Korea’s Director Whang XX, and others for fraud in Seoul Central District Court.
Park revealed in his complaint that “The Defendants conspired to deceive me and defrauded me of my wealth and so I sue.”
According to Park, the Concert Rights to the “JYJ Show-case Tour 2010″ of last year was transferred from C-JeS to Warner Music Korea. After that, it was transferred multiple times and (in the end) reached Kim XX.
Park said that “(he) was interested in the concert industry and from the introduction of a friend first met Kim XX. Kim said upon our meeting that he has the Concert Rights and that if [Park] invested, [Park] could make a very large profit, and recommended enthusiastically that [Park] invests.”
According to Park, he followed Kim’s advice and started to deposit money from October 7th of last year, and drafted an official contract on October 14th. The 5 locations of the concerts were Hong Kong and the USA’s Seattle, New York, San Francisco, and LA. The invested funds were to be used entirely for the concerts, and the budget for the cost of the concerts were to be notified (to Park) in advance. At this, Park invested 1,244,850,000 KRW (approximately $1,244,850).
Park said that “(he) requested proof of the details of the use of funds around October 20th of ast year. But Kim kept pushing it back with excuses of being busy.”
Park also argued that “contrary to what Kim said about his company’s state, Kim’s company had a lot of debt. It’s also been confirmed that he had intention to use the profits from the concerts to repay his debt.”
Park said: “Kim used a company that was already a dissolved company for tax purposes to contract, and he also concealed the fact that he has a debt load of billions KRW when we entered into the contract. Even the profits from the concert of 350,000,000 KRW(approximately 350,000 USD) were collected by the creditors and [Park] suffered harm doubly and triply.”
Park explained the reason for his suit in his complaint: “JYJ held a for-profit concert in Hong Kong on October 24th of last year. But the concerts in the 4 locations in the US, due to the fault of the C-Jes, were non-profit, not for-profit. The defendants did not provide a clear explanation [to Park] even though the schedules and the locations of the concerts were changed. Also no one informed [Park] of the above with official documents. [Park] did not recover one cent from the investment.”
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To summarize, C-JeS transferred the concert right to Warner Korea, who transferred it to others, who eventually transferred to someone named Kim XX.
Kim XX, according to Park, told Park that the concert rights were a good investment and that Park should invest in them.
Park alleges that Kim defrauded him.
Please notice that C-JeS and Warner Korea are not involved in any way in this. By the time that Kim met Park, the concert rights did not even belong to C-JeS or Warner Korea. It belonged to Kim. This was a deal that was strictly between Park and Kim. It is unfortunate that Park decided to drag C-JeS and Warner Korea into this by naming the companies as co-defendant and extremely convenient for SM that the stories are being circulated moments after the JYJ-SM hearing is concluded.
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The details from today’s hearing will follow shortly. According to accounts, it was quite disastrous for SM and the worst of the hearings (for SM) so far.
Stay tuned.
Source: Star News
Credit: JYJ3
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