Joon Woo Kim, Investment Fraud, California 2023

Southern California Man Charged With Diverting $4.8 Million In San Francisco-Based Investment Fraud Scheme

A federal grand jury in San Francisco indicted Joon Woo Kim with fraud in connection with two related fraud schemes—the first, an alleged scheme to mislead investors to contribute to a fund he formed in San Francisco, and the second, a scheme to obtain a multi-million dollar business loans and line of credit by lying to a bank—announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp.

Kim was arrested earlier today in New Haven, Conn., and appeared in U.S. District Court for the District of Connecticut to face the charges.

According to the indictment, filed June 27, 2023, and unsealed today, Kim, 57, of Montebello, Calif., allegedly engaged in the first fraud scheme beginning June 2015 through at least March 19, 2022. Kim created an investment fund called the M5 Doctors Fund and allegedly induced investors to contribute to the fund by making false statements and omissions about the kinds of investments Kim would make while managing the fund’s assets.

The indictment alleges that Kim transferred nearly all M5 Doctors Fund assets, including funds from the liquidation of investments and the return on those investments, to CKR Enterprise, Inc., a wholesale food distribution company owned and operated by Kim and his wife. As General Partner of the M5 Doctors Fund and the person who held himself out as manager and person responsible for the fund, Kim had a duty to disclose all material business, transactions, and investments to the fund’s investors and Limited Partners.

Kim is charged with eight counts of wire fraud, in violation of 18 U.S.C. § 1343; two counts of bank fraud, in violation of 18 U.S.C. § 1344; and one count of making a false statement to a bank, in violation of 18 U.S.C. § 1014. If convicted, Kim faces a maximum sentence of 20 years in prison, and a fine of $250,000, plus restitution, if appropriate, for each violation of 18 U.S.C. § 1343; 30 years in prison, and a fine of $1,000,000, plus restitution, if appropriate, for each violation of 18 U.S.C. §§ 1344 and 1014.

Kim’s initial San Francisco federal court appearance is scheduled for July 28, 2023.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.

Source: https://www.justice.gov/usao-ndca/pr/southern-california-man-charged-diverting-48-million-san-francisco-based-investment