Sunday, September 11, 2011

Rain to be reinvestigated on embezzlement charges

Singer Rain will face reinvestigation on allegations that he embezzled funds at an entertainment firm in which he was the largest shareholder, the prosecution said Sunday. The Supreme Prosecutors’ Office ordered the Seoul Central District Prosecutors’ Office Sunday to reinvestigate the embezzlement case involving the famous singer, which was initially dropped last December.

Rain is suspected of having received some 2 billion won ($1,880,000) in modeling fees from J Tune Creative on condition that the firm would start a textile business. Other investors of the firm claimed the fees were “excessive,” and the firm actually didn’t do any business. Rain is also facing suspicions that he pocketed company funds.

Last year, the Seoul District Prosecutors’ Office dismissed the case saying that Rain’s modeling fee from J Tune Creative was not excessive compared with the money he received from other companies for modeling. The office also said no signs of embezzlement of company funds were found after tracking the company’s bank accounts. The investors, however, filed an appeal to the higher prosecutors’ office requesting a reinvestigation.

The Supreme Prosecutors’ Office accepted their appeal and ordered a reinvestigation in the case, saying that there were suspicious areas regarding the contract for the modeling fee. Rain did not carry out the modeling contract as stated and the fee was too much compared with the average amount he received from other companies, the office said. The prosecution also added that an initial investigation failed to look into the fact that the company had paid for Rain’s lease of a vehicle and an office.

Korea Times


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