BY Julie Jones | Mar 13, 2015 03:13 PM EDT
When singer and actress Clara made sexual harassment allegations against her agency, Polaris Entertainment, the resulting scandal placed many of her endorsement deals in jeopardy.
The requests for cancellation did not immediately begin after she made her allegations. Clara alleged that Polaris Entertainment president Lee Gyu Tae sent her texts that she found suggestive and inoffensive. She also said he invited her to meet him for wine. She wanted out of her contract.
The agency denied those claims, saying Clara had violated the terms of her contract. They accused her of using the charges to get out of her contract. Various versions of the texts between Clara and Lee Gyu Tae were published and the reactions did not always favor Clara.
After the scandal many of the advertisers that contracted Clara as a model asked to cancel their contracts. Speaking through her legal representatives Clara has stated that she will honor the cancellation requests without a fight. The "Emergency Couple" star will not make it difficult for them.
She is not done with her allegations against Polaris. Clara is currently in the U.S. preparing her case against the agency. But complicating her case is the fact that Polaris Entertainment may no longer technically exist.
On March 11, government officials raided the agency's parent company Ilkwang Group. The company is accused of over-charging the government on military contracts and it is being investigated for embezzling over $50 million.
During the raid Lee Gyu Tae, the president of Polaris, was arrested on suspicion of falsifying his company's books. According to the Korean media outlet Korean Observer, he is suspected of defrauding the government by providing sub-standard parts for the equipment. His home was also reportedly raided.
Lee Gyu Tae was previously arrested in 2009 in an arms dealing case.
It has been reported that Polaris Entertainment is now closed and that the company's internal documents have been confiscated until the investigation is complete. The company's web site was down within 24 hours of the raid.
Polaris Entertainment represents Clara and the group Ladies Code. Solo artist Iron was set to formally debut next week.
It is not yet known how the government seizure will affect the future of any artists represented by Polaris Entertainment or Clara's lawsuit against the company.
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