Police Conduct Search and Seizure at Mega Coffee Headquarters... Allegations of Corruption Involving Former Executives
The police have detected suspicions of corruption involving former executives of Mega MGC Coffee and have launched a forced investigation.
On the 30th, the Major Crimes Investigation Division of the National Police Agency announced that from around 2 p.m. that day, investigators were conducting a search and seizure at the headquarters of Mega MGC Coffee (corporate name: Anhouse) located in Gangnam-gu, Seoul.
According to the police, Mr. A, a former head of Mega MGC Coffee, and Mr. B, a former purchasing team leader, are suspected of breach of trust and embezzlement, including receiving rebates worth tens of billions of won from suppliers providing materials to franchise stores. Additionally, it is reported that they were found to have gained approximately 3 billion won in undue profits, known as "pass-through fees," by inserting intermediary distributors between the headquarters and the suppliers.
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The police are investigating not only Mr. A and Mr. B but also about ten individuals in total, including six people such as the representatives of the intermediary distributors and officials from eight supplier companies.
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