Hongs Accused of Million-Dollar Investment Scam

CLYDE HILL, WA – Sung Hong, 45, and Hyun Joo Hong, 41, of Clyde Hill, Washington, are facing federal wire fraud charges after allegedly bilking multiple clients out of millions, the U.S. Attorney’s Office announced this morning. The couple, known as Laurence and Grace Hong, were arrested and are scheduled to appear in U.S. District Court in Seattle at 2:00 PM today.

The HONGs allegedly operated a fraudulent investment scheme centered around their hedge fund, Pishon Holdings, and separately managed accounts. They pitched themselves as experienced investment advisors with a proven track record, soliciting funds from numerous clients since 2011. While the full extent of the fraud is still being calculated, losses to just three victims already exceed $500,000. Authorities are currently assessing losses totaling several million dollars.

Investigators reveal the HONGs preyed on investors through religious organizations, leveraging shared beliefs to gain trust. They falsely claimed Laurence Hong privately managed money for wealthy Korean families, and Grace Hong held a Series 65 securities license and had experience at a major investment firm – both statements proven untrue. The couple distributed misleading investment prospectuses, filled with fabricated performance data and plagiarized market analysis, and concealed crucial details about Laurence Hong’s past.

The scheme wasn’t about returns; it was about enriching the HONGs themselves. A California church invested $1 million and lost $300,000 on a single trade. Despite the loss and a fee structure tied to gains, the HONGs allegedly siphoned off nearly $150,000 in “advisor fees.” Another couple lost $100,000 of their $180,000 retirement savings within a year, then watched their remaining funds diverted to Grace Hong’s personal account, used for credit card bills and a $16,000 family vacation to a Bahamas resort.

The FBI’s investigation has uncovered over $2 million in additional losses across multiple investor accounts. The HONGs didn’t just steal money; they flaunted it. Their ill-gotten gains funded a lavish lifestyle including a 9,000 square foot rental home, a 45-foot yacht, a fleet of luxury vehicles – BMWs, a Maserati, and a Lamborghini – and extravagant travel. The FBI continues to investigate the number of victims and the total amount of fraudulent activity.

Anyone with information about this case is urged to contact the Seattle FBI field office at seattle.fbi@fbi.gov or 206-622-0460. Sung Hong, aka Laurence Hong or Lawrence Hong, and Hyun Joo Hong, aka Grace Hong, are presumed innocent until proven guilty. Wire fraud carries a maximum sentence of 20 years in prison. The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Steven Masada.