On Sunday, officers took Lee Jong-suk, the 41-year-old manager of club Loco, into custody for allegedly operating the establishment without a proper license — a violation of the Law Regulating Adult Entertainment Businesses.
Three other Korean nationals employed at the club were charged with violating the conditions of their visas as dictated by the Immigration Control and Refugee Recognition Act.
According to police, Loco has generated 92 million yen in revenue since June of 2010.
Lee has reportedly denied the allegations. “Because life gets complicated while under prosecution, I do not have anything further to say,” the suspect is quoted by police.