City of Industry, CA – July 27, 2007 – Jian Zhuang of Japan has been ordered to pay restitution and a civil penalty for his role in a $5 million foreign currency (forex) fraud, the U.S. Commodity Futures Trading Commission (CFTC) announced today.
The case, originating from an amended complaint filed in May 2004, alleged that Zhuang, along with Emerald Worldwide Holdings, Inc., Hao Jan Lu of Rowland Heights, California, and City Trust and Investment Co. Inc. of Japan, fraudulently solicited investments from customers in Japan and China. These funds were then used to trade illegal off-exchange forex futures contracts in the United States.
On November 30, 2006, Judge A. Howard Matz of the U.S. District Court for the Central District of California issued a consent order permanently barring Zhuang and Emerald from engaging in any commodity-related activity. This included trading and soliciting investments in commodity futures and options.
Under the terms of the consent order, Emerald Worldwide Holdings was required to pay $3,433,722.61 in restitution and a $9 million civil monetary penalty. Zhuang is jointly and severally liable for $2,264,879.94 of the restitution and is individually responsible for a $250,000 civil penalty.
Approximately $1.5 million is currently available for distribution to eligible claimants who suffered net losses as a result of the fraud. Robb Evans & Associates LLC has been appointed as Fund Administrator to manage the claims process and distribute the available restitution funds.
The Fund Administrator will contact individuals and entities who deposited funds directly into U.S. bank accounts belonging to Emerald, ACE Capital Advisory Group Inc., and/or ACE Emerald W. Holding Inc. between March 2002 and April 2004. Claimants will need to verify their deposits, withdrawals, and net losses to receive a pro rata distribution of the restitution funds. Those with withdrawals exceeding deposits will not be eligible.
Claimants can contact Robb Evans & Associates LLC at 11450 Sheldon Street, Sun Valley, CA 91352-1121, or via email at [email protected]. Further information about the distribution is available at http://www.robbevans.com/html.
Source: CFTC.gov
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