Securities, Commodities, And Investment Fraud: Hung Kang and John Won Chargedwith Conspiring to Commit Wire and Securities Fraud

<h2>Two Defendants Indicted in Brooklyn Federal Court for Foreign Exchange Trading Scams<&sol;h2>&NewLine;<p><strong>Defendants Stole Hundreds of Thousands of Dollars by Luring Korean-American Investors into Bogus Foreign Exchange Trading<&sol;strong><&sol;p>&NewLine;<div class&equals;"mh-content-ad"><script async src&equals;"https&colon;&sol;&sol;pagead2&period;googlesyndication&period;com&sol;pagead&sol;js&sol;adsbygoogle&period;js&quest;client&equals;ca-pub-9162800720558968"&NewLine; crossorigin&equals;"anonymous"><&sol;script>&NewLine;<ins class&equals;"adsbygoogle"&NewLine; style&equals;"display&colon;block&semi; text-align&colon;center&semi;"&NewLine; data-ad-layout&equals;"in-article"&NewLine; data-ad-format&equals;"fluid"&NewLine; data-ad-client&equals;"ca-pub-9162800720558968"&NewLine; data-ad-slot&equals;"1081854981"><&sol;ins>&NewLine;<script>&NewLine; &lpar;adsbygoogle &equals; window&period;adsbygoogle &vert;&vert; &lbrack;&rsqb;&rpar;&period;push&lpar;&lbrace;&rcub;&rpar;&semi;&NewLine;<&sol;script><&sol;div>&NewLine;<p>Earlier today&comma; in federal court in Brooklyn&comma; an indictment was unsealed charging Tae Hung Kang&comma; also known as &OpenCurlyDoubleQuote;Kevin Kang&comma;” and John Won with conspiring to commit wire and securities fraud&comma; securities fraud&comma; and conspiring to commit money laundering&comma; in connection with schemes involving foreign exchange trading that targeted members of the Korean-American community&period; Kang was also charged with substantive wire fraud&period; The defendants were arrested today and are scheduled to be arraigned this afternoon before United States Magistrate Judge Sanket J&period; Bulsara&period;<&sol;p>&NewLine;<p>Richard P&period; Donoghue&comma; United States Attorney for the Eastern District of New York&comma; and William F&period; Sweeney&comma; Jr&period;&comma; Assistant Director-in-Charge&comma; Federal Bureau of Investigation&comma; New York Field Office &lpar;FBI&rpar;&comma; announced the charges&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;As alleged in the indictment&comma; Kang and Won lured investors with false promises of great profits to be made in the foreign exchange market&comma; and then stole their money&comma;” stated United States Attorney Donoghue&period; &OpenCurlyDoubleQuote;This Office&comma; together with our law enforcement partners&comma; is committed to investigating and prosecuting fraudsters who prey upon the investing public&period;” Mr&period; Donoghue expressed his appreciation to the United States Commodities and Futures Trading Commission and the FBI Field Office in Atlanta for their assistance during the investigation&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;As alleged&comma; Kang and Won pursued victims with specific placement of advertisements in Korean-language newspapers&comma; preying upon the kinship of their target group and exploiting their affiliation with this particular community&comma;” stated FBI Assistant Director-in-Charge Sweeney&period; &OpenCurlyDoubleQuote;In addition&comma; they falsely represented their trading credentials while persuading investors to contribute additional money in stock—money that was eventually misappropriated&period; The FBI will continue to dedicate resources to uncovering <a class&equals;"wpil&lowbar;keyword&lowbar;link" href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;tag&sol;financial-fraud&sol;amp&sol;" title&equals;"financial" data-wpil-keyword-link&equals;"linked" data-wpil-monitor-id&equals;"842">financial<&sol;a> crimes of all kinds&comma; especially those that seek to capitalize on the trust and affinity of innocent victims&period;”<&sol;p>&NewLine;<p>As alleged in court documents&comma; dozens of investors in the Eastern District of New York were defrauded in connection with the two charged schemes&comma; both of which involved foreign exchange trading&period; Foreign exchange trading refers to trading one currency for another in an effort to profit from fluctuating exchange rates&period; In connection with the first alleged scheme&comma; investors were enticed by advertisements placed by the defendants in Korean-language newspapers and other promotional materials to open foreign exchange trading accounts that would be managed by Kang&comma; Won and others at their company FOREXNPOWER&period; Kang and Won promised investors double-digit returns&comma; claiming to have a secret algorithmic trading method that would generate large profits with minimal risk&period; In fact&comma; Kang and Won had minimal trading experience&comma; their algorithmic trading method never performed as promised&comma; and investors suffered substantial losses&period;<&sol;p>&NewLine;<p>In the second scheme&comma; investors were persuaded by the defendants to invest their money into stock issued by Safety Capital Management&comma; Inc&period; &lpar;&OpenCurlyDoubleQuote;Safety Capital”&rpar;&comma; which did business as FOREXNPOWER&period; These investors were told their investments would be pooled by Kang and others to conduct foreign exchange trading&comma; or to expand the FOREXNPOWER business&comma; and&comma; again&comma; promised a large return on their investment&period; Ultimately&comma; nearly all of the money that was invested in Safety Capital stock&comma; totaling at least &dollar;700&comma;000&comma; was misappropriated by the defendants&period; The defendants used the stolen money to pay for advertisements targeting investors and promoting FOREXNPOWER&period;<&sol;p>&NewLine;<p>If convicted of wire fraud conspiracy&comma; the defendants each face up to 20 years’ imprisonment&period;<&sol;p>&NewLine;<p>The charges in the indictment are merely allegations&comma; and the defendants are presumed innocent unless and until proven guilty&period;<&sol;p>&NewLine;<p>The government’s case is being handled by the Office’s Business and Securities Fraud Section&period; Assistant United States Attorney Lauren Howard Elbert is in charge of the prosecution&period;<&sol;p>&NewLine;<p>The Defendants&colon;<&sol;p>&NewLine;<p>TAE HUNG KANG &lpar;also known as &OpenCurlyDoubleQuote;Kevin Kang”&rpar;<br &sol;>&NewLine;Age&colon; 55<br &sol;>&NewLine;Bayside&comma; New York<&sol;p>&NewLine;<p>JOHN WON<br &sol;>&NewLine;Age&colon; 49<br &sol;>&NewLine;Flushing&comma; New York<&sol;p>&NewLine;<p>E&period;D&period;N&period;Y&period; Docket No&period; 18-CR-184 &lpar;WFK&rpar;<&sol;p>&NewLine;<p><a href&equals;"https&colon;&sol;&sol;www&period;justice&period;gov&sol;usao-edny&sol;pr&sol;two-defendants-indicted-brooklyn-federal-court-foreign-exchange-trading-scams">Original PressReleases&&num;8230&semi;<&sol;a><&sol;p>&NewLine;

Investment Fraudwire fraud