Joe Cho Seunghyun, Chairman of Singapore-based Marvelstone Group and Founder of now-defunct fintech hub Lattice80, is facing legal suit in his home country South Korea for allegedly failing to pay promised returns to investors, says a The Business Times report.
The legal charge were filed by South Korean investor Chun Yong Beom, who had invested S$250,000 (US$183,000) in Marvelstone Partners in 2015. As per the documents reviewed by BT, Marvelstone Partners had guaranteed a 33 per cent interest per annum on the capital, with the funds meant to go into another project that was later listed. The contract further guaranteed a profit on exit.
According to Beom, this guaranteed return due end-March 2018 never arrived, and he questioned fund redemptions from Marvelstone Partners since 2017. Boem had also filed a police report against Seunghyun in South Korea in 2018.
The case has however been temporarily put on hold, with Beom saying that it is because Seunghyun has not filed a counterclaim with the South Korean court.
The Business Times claims that it reviewed the documents filed in South Korea and Singapore relating to the Marvelstone Group.
Marvelstone Group have told BT that the claims are “untrue”.
Seunghyun, who is a Singapore permanent resident, is also involved in a legal dispute with Hong Leong Holdings over the breach of a licence agreement. The property group accuses that Seunghyun and Lattice80 failed to deposit revenue receipts that should have gone into designated bank accounts.
In November 2017, e27 reported that Marvelstone neglected to pay Hong Leong the utility bills, internet services and other rental fees, leading to a major fallout between the two firms. Following this, Seunghyun had been dropped as a brand ambassador for the Singapore Tourism Board’s (STB) ‘Passion Made Possible’ campaign.