6.9.2009 The SEC charged two California men, Peter C. Son and Jin K. Chung, and two companies they control—SNC Asset Management, Inc. and SNC Investments, Inc.—for conducting an $80 million Ponzi scheme that targeted Korean-American investors with false promises of extraordinarily high returns from foreign currency (forex) trading. The SEC alleges that Son and Chung lured approximately 500 investors into their investment scheme by promising investors spectacular annual returns of up to 36% from forex trading and telling them that their companies had generated 50% profits from such trading each year since 2003. Allegedly, Son and Chung then misappropriated investor money for their own personal use, including mortgage payments on Son’s multimillion-dollar home. Among other emergency relief for investors, the SEC seeks court orders: (1) prohibiting the defendants from engaging in future violations of the antifraud provisions of the federal securities laws; (2) freezing their assets and compelling them to return overseas assets to the United States; and (3) requiring them to disgorge their ill-gotten gains and pay financial penalties.
Click http://www.sec.gov/litigation/complaints/2009/comp21076.pdf to access the SEC litigation complaint.