Woodland Hills Man Arrested in Federal Case Alleging He Extorted ‘Protection’ Money from Koreatown Businesses

LOS ANGELES – Authorities this morning arrested a Woodland Hills man on federal charges that allege he was extorting “protection” money from Koreatown businesses, sometimes using acts of violence against individuals who refused to pay.

Daekun Cho, 38, was arrested by special agents from Homeland Security Investigations (HSI) and officers from the Los Angeles Police Department pursuant to a federal criminal complaint filed last week. The complaint charges Cho with interference with commerce by threats or violence. Cho is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles.

The federal investigation in this case began about a year ago and found that Cho was demanding protection money from karaoke businesses in Koreatown, as well as from “doumi” – or hostesses – employed by patrons of the karaoke establishments.

“To further his extortion scheme, Cho committed shootings, a carjacking, a kidnapping, and other acts of physical violence,” according to the complaint affidavit. “Cho made explicit threatening statements to the doumi drivers and karaoke bar owners to get them to pay a monthly fee.”

The affidavit outlines physical attacks of four victims over the past year and discusses another victim who was threatened. The first victim discussed in the affidavit was a doumi driver, who, after refusing to pay the protection money after a price increase, was subject to a baseball bat beating, allegedly by Cho and another individual, on May 8, 2021. The victim suffered a broken arm and multiple lacerations, the affidavit states.

In another incident on August 5, 2022, at a karaoke bar, Cho demanded that a doumi driver leave the location, and, as the driver and two doumis were driving away, they heard gunshots and one of the doumis suffered a gunshot wound to the neck, according to the affidavit, which notes this incident remains under investigation by the LAPD.

The fifth victim, who reported he had been paying Cho for approximately four years, told investigators that he had decided to stop paying Cho before Cho allegedly assaulted him and stole approximately $1,000 from him on January 24. The affidavit details how that victim, working with law enforcement, made an extortionate $500 payment to Cho on February 16.

A complaint contains allegations that a defendant committed a crime. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The charge of interference with commerce by threats or violence carries a statutory maximum sentence of 20 years in federal prison.

HSI and the LAPD are investigating this matter.

Assistant United States Attorney Jena MacCabe of the Violent and Organized Crime Section is prosecuting this case.