Earlier today in federal court in Brooklyn, John Won was sentenced by U.S. District Judge Raymond J. Dearie to a year and a day in prison following his November 2021 conviction in a trial for all counts including securities fraud, wire fraud and money laundering. conspiracy, as well as substantial securities fraud. Won was also ordered to pay $842,076.81 in restitution to the victims of his crimes. Won’s defendant, Tae Hung (Kevin) Kang, pleaded guilty to securities fraud conspiracy and was sentenced to two years in prison in December 2021.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Deputy Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“John Won and Kevin Kang have shamelessly cheated members of the Korean-American community in our district out of their nest egg and savings,” the United States attorney said. “This sentence shows what fraudsters and scammers should expect when they target innocent victims: they will be arrested, punished and ordered to return their ill-gotten gains.”
Mr. Peace thanked the US Commodities and Futures Trading Commission (CFTC) and the National Futures Association (NFA) for their extensive cooperation and assistance in this matter.
Between October 2010 and December 2013, Won conspired with co-defendant Tae Hung Kang and others in a scheme to defraud victims, who were largely members of New York’s Korean-American community. , for them to invest in exchange accounts and in their business, called ForexNPower. As part of this scheme, the conspirators published advertisements in Korean-language newspapers and on Korean-language radio stations claiming that ForexNPower had a secret algorithmic trading method used to trade in the forex market that guaranteed investors monthly returns of 10% with no risk of loss. In reality, ForexNPower had no effective trading methods and their client accounts suffered substantial losses.
The conspirators also tricked investors into buying shares issued by ForexNPower, falsely claiming that the invested funds would be used to expand the business to a new location in New Jersey or pooled and used to exchange foreign currencies. In truth, the defendant and his co-conspirators embezzled a substantial part of the funds, spending the rest, among other things, in the fraudulent advertisements described above.
In July 2022, Mr. Peace was selected as the chair of the White Collar Fraud Subcommittee of the Attorney General’s Advisory Committee (AGAC). As head of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated non-violent crimes, including mail fraud and electronics, bank fraud, healthcare fraud. , tax evasion, securities and commodity fraud and identity theft.
The government’s case is handled by the Bureau’s Business and Securities Fraud Section. Assistant United States Attorneys Sarah M. Evans, Nicholas J. Moscow and Deputy Chief Gerald M. Moody, Jr. of the Justice Department’s Fraud Section are in charge of the prosecutions.
TAE HUNG KANG (also known as Kevin Kang)
Age: 57 years old
Bayside, New York
EDNY File #18-CR-184 (RJD)