[Soompi] Former Fantagio Employee Sentenced For Fraud In Scheme Affecting Weki Meki And Hello Venus

[Whisky23]

A former employee of Fantagio has been sentenced in his first trial for pocketing commission fees in the process of signing endorsement deals for the agency’s artists.

The Seoul Central Courts recently sentenced the former Fantagio employee “A” to 10 months in prison on charges that included fraud. The former employee’s friend “B” was also given six months in prison and two years of probation for aiding in the scheme.

“A” was charged with fraud on allegations that he pocketed approximately 20 percent of endorsement deals for agency artists under the guise of commission fees. The scheme took place from December 2016 to February 2018 for a total of 105 million won (approximately $88,200). “B” aided in the scheme, and though he was not involved in the actual process of endorsement selection, “B” pocketed 8.6 million won (approximately $7,200) while “A” took (approximately $81,000). The celebrities who were affected included girl groups Weki Meki and Hello Venus.

The judge in the trial stated, “The crime that the two people committed cannot be taken lightly as they defrauded others out of more than 100 million won,” and “‘A’ must especially face a harsh punishment as he went against his job and led the crime, and he kept most of the money for himself.”

The judge then explained the reasoning behind the differing sentences as he said, “They have admitted to their crimes and are reflecting, and they do not have any past criminal record. In the case of ‘B,’ he was following the orders of ‘A’ and did not profit as much from the crime.”

source

Sigh...why does it seem like the management side of the entertainment industry in SK is full of crooks, pimps, and embezzlers? In any case, at least we have an actual prison sentence this time. I just feel sorry for Weki Meki and Hello Venus, especially Hello Venus with them disbanding earlier this year. I hope the money that's due to them gets properly reimbursed.

It does make you wonder which idols / groups are being scammed by their agencies right now, especially when someone like LSM is openly siphoning money into his pet project company.

 

[UMJI MOODS]

I hope they will get their money. So unfair.

 

[Pyron]

Well considering the history of SK after Korean War, it shouldn't be a surprise. SK economic growth was miraculous, but it still has a lot of baggage from those times. Basically it's comparable to early decades of Hollywood (although today's Hollywood isn't that great actually, but it's much better).

I hope they get compensated. At least the company should feel obligated to cover these losses. It's their fault to not properly check things. It's money transaction. It seems like the most important basic thing a company would care about.

 

[Whisky23]

Well considering the history of SK after Korean War, it shouldn't be a surprise. SK economic growth was miraculous, but it still has a lot of baggage from those times. Basically it's comparable to early decades of Hollywood (although today's Hollywood isn't that great actually, but it's much better).

I hope they get compensated. At least the company should feel obligated to cover these losses. It's their fault to not properly check things. It's money transaction. It seems like the most important basic thing a company would care about.

Yeah, predators and porn recruiters are always on the periphery of the Hollywood, preying on dreamers. At the same time, a lot of these smaller agencies don't seem have proper financial management practices in place - it's highly unusual for business transactions to have payments made to personal accounts, even between small companies.

 

[AegyoInTheStreets]

Meanwhile yg, Seungri, and lee soo man walking free.

 

[Mina]

I really hope they get their money back. This is such a dark side of the industry

 

[MicrowavedTea]

Feel like much smaller, nugu agencies are most likely all scammers

 

[Whisky23]

Feel like much smaller, nugu agencies are most likely all scammers

Many of these groups from smaller agencies are financed without very deep pockets, and the business plan really depends on the debuting group to become popular rather quickly, which is pretty much never the case. At that point, it becomes an issue of getting the groups to promote without spending any money, which akin to squeezing blood out of a rock.

 

[fromisJelly]

I hope that the groups that got affected will get compensated

 

[fullofjoy]

Some people don't have feeling for other people.

 

[Astro]

Oh Fantagio please learn better

 

[yooamygirls]

Hope everything works out for the artists and those behind the scenes affected.

 

[Aegyo]

Hello Venus don't deserve this....