Queens Man Faces 5 Years in Prison for Forexnpower Scam
- Kang is accused of lying about his trading credentials to con the Korean-American community into opening FX accounts.
A Queens man pleaded guilty to conspiring to commit securities fraud in Brooklyn federal court for his role in defrauding investors out of more than $1.1 million in a forex scheme that targeted Korean Americans.
Tae Hung Kang, also known as 'Kevin Kang', was arrested in 2018 by the federal authorities and faces about 5 years in prison, as well as forfeiture and a fine, the US Justice Department said on Tuesday.
The justice department’s statement contained a detailed description of how the scam operated. Kang is accused of lying about his trading credentials to con the Korean-American community into opening accounts with his company, Safety Capital Management, which did business as Forexnpower.
The 57-year-old man allegedly promised double-digit returns to potential customers, claiming to have a secret Algo Trading Algo Trading Algo trading sometimes referred to as algo, may be defined as computerized trading that employs proprietary algorithms or pre-programmed commands that are tailored to take into consideration variables like price, volume, and timing. First introduced in American financial markets in the 1970s, algo-trading is generally utilized in trading scenarios such as arbitrage, trend trading strategies, and order execution while approximately 60% of all trades were executed by computers in 2010. Today, algo Algo trading sometimes referred to as algo, may be defined as computerized trading that employs proprietary algorithms or pre-programmed commands that are tailored to take into consideration variables like price, volume, and timing. First introduced in American financial markets in the 1970s, algo-trading is generally utilized in trading scenarios such as arbitrage, trend trading strategies, and order execution while approximately 60% of all trades were executed by computers in 2010. Today, algo Read this Term system that would generate large profits with minimal risk. However, Kang had minimal trading experience, and his strategies had never performed as promised, causing the investors to suffer around $400,000 in losses.
Kang has agreed to pay restitution for harmed investors in the amount of $835,000.
Additionally, Federal prosecutors charged Kang’s co-defendant, John Won, with providing similar bogus promises. The pair advertised in local Korean-language newspapers enticing members of their own community to invest their money into stock issued by their company. The victims were told that their money would be pooled to conduct foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term trading or to expand the Forexnpower business.
Ultimately, nearly all of the money that was invested in Forexnpower stock was misappropriated by Kang and his co-conspirators. Prosecutors say they stole nearly all the money invested - around $700,000 - to pay for advertisements promoting their business.
“With today's plea, Kang is held accountable for his fraud and for betraying the trust of the Korean-American community who, believing in Kang's integrity, invested hundreds of thousands of dollars in his company's stock," stated Acting U.S. Attorney Lesko.
A Queens man pleaded guilty to conspiring to commit securities fraud in Brooklyn federal court for his role in defrauding investors out of more than $1.1 million in a forex scheme that targeted Korean Americans.
Tae Hung Kang, also known as 'Kevin Kang', was arrested in 2018 by the federal authorities and faces about 5 years in prison, as well as forfeiture and a fine, the US Justice Department said on Tuesday.
The justice department’s statement contained a detailed description of how the scam operated. Kang is accused of lying about his trading credentials to con the Korean-American community into opening accounts with his company, Safety Capital Management, which did business as Forexnpower.
The 57-year-old man allegedly promised double-digit returns to potential customers, claiming to have a secret Algo Trading Algo Trading Algo trading sometimes referred to as algo, may be defined as computerized trading that employs proprietary algorithms or pre-programmed commands that are tailored to take into consideration variables like price, volume, and timing. First introduced in American financial markets in the 1970s, algo-trading is generally utilized in trading scenarios such as arbitrage, trend trading strategies, and order execution while approximately 60% of all trades were executed by computers in 2010. Today, algo Algo trading sometimes referred to as algo, may be defined as computerized trading that employs proprietary algorithms or pre-programmed commands that are tailored to take into consideration variables like price, volume, and timing. First introduced in American financial markets in the 1970s, algo-trading is generally utilized in trading scenarios such as arbitrage, trend trading strategies, and order execution while approximately 60% of all trades were executed by computers in 2010. Today, algo Read this Term system that would generate large profits with minimal risk. However, Kang had minimal trading experience, and his strategies had never performed as promised, causing the investors to suffer around $400,000 in losses.
Kang has agreed to pay restitution for harmed investors in the amount of $835,000.
Additionally, Federal prosecutors charged Kang’s co-defendant, John Won, with providing similar bogus promises. The pair advertised in local Korean-language newspapers enticing members of their own community to invest their money into stock issued by their company. The victims were told that their money would be pooled to conduct foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term trading or to expand the Forexnpower business.
Ultimately, nearly all of the money that was invested in Forexnpower stock was misappropriated by Kang and his co-conspirators. Prosecutors say they stole nearly all the money invested - around $700,000 - to pay for advertisements promoting their business.
“With today's plea, Kang is held accountable for his fraud and for betraying the trust of the Korean-American community who, believing in Kang's integrity, invested hundreds of thousands of dollars in his company's stock," stated Acting U.S. Attorney Lesko.