Indictment Charges Delaware Man with $1.8 Million Commodities Fraud Scheme
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that an Indictment was returned by a federal grand jury charging Kyong Ho Kim of Newark, Delaware, with seven counts of wire fraud (18 U.S.C. § 1343), three counts of mail fraud (18 U.S.C. § 1341), six counts of Commodities Fraud (7 U.S.C. §§ 6b, 13), and one count of engaging in monetary transactions in property derived from specified unlawful activity (Money Laundering), in violation of 18 U.S.C. § 1957.
According to the Indictment, the defendant solicited and obtained over $1.8 million from other persons, by representing that he was a successful foreign currency trader and that he would invest their money in foreign currency markets. It is alleged that the defendant sent investors false reports, indicating that their investments had grown through foreign currency trading; meanwhile, the defendant diverted certain funds he received from investors into his personal bank accounts. It is further alleged that the defendant spent the diverted funds on personal items, including a yacht.
If convicted of the pending charges, the defendant faces up to 20 years in prison on each count of wire fraud and mail fraud, and up to 10 years in prison on each count of commodities fraud and money laundering, in addition to possible fines and restitution.
This case is the result of an investigation conducted by the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Lauren M. McEvoy, District of Delaware and the Wilmington Resident Office of the Federal Bureau of Investigation.
The charges in the Indictment are only allegations and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.