Polaris Entertainment, host to artists including Iron, Clara and Ladies' Code, and its parent company, the Ilkwang Group have been raided by authorities due to fraud.

Ilkwang Group and at least 10 of its offices are currently being investigated by Korean government officials. The manufacturing company, which has ties and information to top secret military matters is accused of embezzlement, as well as over-charging the military.

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The CEO of the company and its entertainment subsidiary, Lee Gyu Tae and a few executives, have also been arrested, following the search of Tae's home conducted by the IRS and the Korean government. This is not the first time that Tae has been involved in a scandal. He previously made headlines and became well known amongst K-pop fans because of an alleged sexual harassment, which involved artist, Clara.

Authorities seized several files and internal documents from the parent company and its subsidiaries and will use them to build a strong case against Ilkwang, Tae and other executives involved.

There have been reports that Polaris has temporarily closed. This is extremely bad news for several artists like Iron, who was scheduled to debut his solo career next week. The "Poison" singer who appeared on the show "Show Me The Money," has topped the music charts in 2014 and has since been featured by other musicians.

Despite the raid, the arrests and the alleged closure of Polaris, the official Twitter account of the entertainment company is still active, although its website seems to be down.

TagsPolaris Entertainment, Iron, Lee Gyu Tae