Forex Magnates: And yet another Forex Ponzi scheme! This time targeting Korean-Americans
I try constantly to warn naive (and sometimes the) most sophisticated investors by promising returns that people are unthinkable, but refuses to disclose all financial details are rip off artists. If you do not have a description clearcut / / prospectus sheet after which the products were invested, in which the property is underway and it is monitoring the performance (such as KPMG, E & Y etc.) – there's a good chance that you have been approached by a scammer looking to part with your hard earned money.
Transparency is fundamental to the investment industry.
We've already had a professor from Texas and a portfolio manager of Florida in charge of running a Ponzi scheme, but this time the scam is more specific: it has been used to tear the Korean-American.
Full Story:
Washington, DC, The U. S. Commodity Futures Trading Commission (CFTC) announced today that it has filed an appeal in federal court in San Francisco charging SNC Asset Management, Inc. (CNS active) and SNC Investments, Inc. (SNC Investments), both of Pleasanton , California (collectively, SNC), and Chief Executive Officer Chief Financial Officer Peter Sonand Jin K. Chung, with operating a 85 million U.S. dollars in fraudulent foreign exchange (forex) fraud affecting about 500 customers. Asks the CFTC to curb the activities of emergency for the freezing and preservation of records of defendants
The CFTC complaint, filed today, charges the defendants misappropriated customer funds to pay other clients and to pay personal expenses and business. The defendants are accused of fraudulently soliciting and issuing false statements to clients to hide their embezzlement and lack of negotiation. It was alleged that the defendants abruptly closed its operations and of the Son and Chung disappeared.
Stephen J. Obie, acting director of the Enforcement Division CFTC, said: "This is another example of the insidious nature of fraudulent investment schemes that affinity groups. On the basis of personal relationships, people were lured from their hard earned money, only to learn too late that they were victims of a massive fraud forex. The CFTC has been vigilant in taking prompt action to stop these systems as they are discovered and to bring these crooks to justice. "
Presumably, at least since 2000, the defendants fraudulently solicited members of the Korean community in the Bay area of San Francisco, where the defendants lived Son and Chung. Defendants falsely claimed to be successful traders, boasting a roadmap assumed returns of 50 percent annually and providing a monthly return of 2 percent to 3 percent. Solicitation documents boasted that SNC has been a leader in the forex.
Each month, the defendants' statements were provided in which the promised benefits constant and continued to seek new funds. During the last year of operation, the defendants in almost 22 million in new funds with millions arrive shortly before closing.
The defendants, however, seemed to be engaged in the trade fair on behalf of clients. What little trade as they did was unnecessary. Instead, the defendants diverted funds to pay returns and wholesale customers to pay for personal expenses, including mortgage payments on a child at the home of luxury, to channel money to the defendant franchise, and meet the investment requirements of capitalization CNS.
The complaint also alleges that the CFTC SNC Investments, a Futures Commission Merchant registered with the CFTC, to violate the minimum net capital deemed insufficient notice of its capitalization.
Relief Defendant Ann Lee, wife of Peter, son named
Lee Ann complaint names as relief defendant because the CFTC has received funds, as alleged monthly wages, even if not performed services for CNS. Lee Ann is the wife of his son.
In addition to emergency relief to freeze assets, repatriation of funds, keep records and order the fraudulent activity, the CFTC has requested a refund, rebate, civil penalties and permanent injunctions against future violations federal laws on Commodities and cons additional traffic.
Son appeared Wednesday in federal court in Oakland, California federal criminal charges. In a separate action today, the U. S. Securities and Exchange Commission also filed a complaint against the defendants.
The enforcement division of the CFTC, with the Commission U. S. Securities and Exchange Commission, the Federal Bureau of Investigation, the Office of the United States for the Northern District of California, the National Futures Association, the Danish Financial Supervisory Authority (Finanstilsynet) Authority and the Swedish Financial Supervisory (Finansinspektionen) for their assistance.
The following CFTC Division staff are responsible for enforcement of this case: Gretchen L. Lowe, Luke Marsh, Toye Olarinde, Kara Mucha, Michelle and Candles.
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