The U.S. Attorney’s Office for the Eastern District of New York yesterday announced the guilty plea of New York resident Tae Hung Kang, also known as “Kevin Kang,” in the securities fraud case related to a scheme involving foreign exchange trading that targeted members of the Korean-American community.
The authorities indicated that Mr. Kang pleaded guilty and “faces up to five years in prison, as well as forfeiture and a fine. Kang has also agreed to pay restitution in the amount of $835,058.32.” The fraudulent scheme operated under the brand name FOREXNPOWER, while Mr. Kang “defrauded investors located in the Eastern District of New York and elsewhere in connection with foreign exchange trading which refers to trading one currency for another in an effort to profit from fluctuating exchange rates. Kang enticed investors to invest their money into stock issued by his company, Safety Capital Management, Inc. (“Safety Capital”).”
Mr. Kang used some of the money stolen from clients to pay for advertisements targeting additional investors and promoting FOREXNPOWER’s outsized trading returns based on an algorithmic trading method that did not actually exist.