Police are seeking a warrant to detain Bang Si-hyuk, chairman of the K-pop powerhouse Hybe, who stands accused of swindling investors out of nearly 200 billion won at the time of the company’s initial public offering(IPO).

The Seoul Metropolitan Police Agency said Tuesday that it has requested Bang’s detention on charges of unfair trading under the Capital Markets Act.

Bang is alleged to have falsely told investors in 2019 that Hybe’s IPO had been delayed, driving them to sell their shares in the firm to a private equity fund tied to him and other Hybe executives.

Investigators suspect that Bang raked in approximately 200 billion won by selling those shares after Hybe’s eventual listing, under an undisclosed agreement with the equity fund.

The Capital Markets Act stipulates that offenders convicted of bringing in five billion won or more by fraud must face at least five years in prison. KBS World