Two Charged in NYC For Currency Fraud That Targets Korean-Americans

By slowpoke748 (Flickr.com) via Wikimedia Commons

On Thursday, two men who are from the New York City borough of Queens were arrested and charged with causing approximately $1.1 million worth of losses in a currency fraud that is targeting Korean-American investors.

Prosecutors in the United States accused John Won, 49, of Flushing, and Tae Hung “Kevin” Kang, 55, of Bayside of “preying upon the kinship of their target group” by luring victims to open accounts with or invest in their company that is called Forexnpower.

The prosecutors said that the defendants overstated their trading expertise and falsely promoted how their “Super Power-Bot” and “Aset” algorithmic methods for trading would generate huge returns.

According to the indictment, some of the investors were tempted by ads in Korean-language newspapers that are offering “a secret trading method generating more than 10% monthly profit” and the opportunity “to make $1 million and more within three to five years.”

Allegedly, the investors lost over $700,000 due to investing in Forexnpower, which was also known as Safety Capital Investment Inc, and almost $400,000 in trading accounts, with some money misappropriated to lure new investors.

According to the indictment that was filed with the federal court in Brooklyn, the schemes ran between the period of 2010 and 2013,

The lawyers for the defendants could not be reached for comment.

Both the defendants were charged with wire fraud, money laundering, securities fraud, and conspiracies to commit securities fraud.

The charge for wire fraud conspiracy carries a maximum prison term of 20 years.

In 2015, the Commodity Futures Trading Commission of the United States filed related civil charges against both the defendants. Court records show that the said case remains to be pending.