Kay Yang, Forex Fraud, Wisconsin 2023
MEQUON, WI – Kay Yang, 43, of Mequon, Wisconsin, has been ordered to pay over $24 million in restitution and penalties for defrauding members of the local Hmong community through a foreign currency (forex) scheme. The U.S. District Court for the Eastern District of Wisconsin entered a default judgment on June 5, 2023, against Yang and her companies, AK Equity Group LLC and Xapphire LLC.
According to court documents, from approximately April 2017 through March 2020, Yang solicited at least $15.7 million from approximately 67 individuals – the majority of whom were Hmong community members in Wisconsin – for participation in a commodity pool purportedly trading forex. The CFTC alleged Yang and her companies made false representations and material omissions to investors.
The court found Yang liable for fraud in connection with retail forex transactions, fraud as a commodity pool operator and associated person, and registration violations. The order mandates Yang, AK Equity, and Xapphire pay $13,692,690.27 in restitution to victims and a $10,387,635.91 civil monetary penalty. Furthermore, Yang’s husband, Chao Yang, has been ordered to disgorge $1,422,430.42, representing funds derived from the fraudulent scheme.
The CFTC complaint, originally filed on April 13, 2022, detailed how Yang misappropriated at least $4.8 million of investor funds, using the money for personal expenses, including nearly $1.4 million spent at casinos, luxury hotels, and vehicles.
The court permanently enjoined Yang, AK Equity, and Xapphire from violating the Commodity Exchange Act, registering with the CFTC, and trading in any CFTC-regulated markets. The CFTC cautions that victims may not recover all lost funds due to potential limitations in the defendants’ assets.
The Commodity Futures Trading Commission received assistance in this case from the National Futures Association, the Securities and Exchange Commission, and the Wisconsin Department of Financial Institutions, as well as international regulators in Australia, The Bahamas, Sweden, and the UK.
Source: CFTC.gov
Source: https://www.cftc.gov/PressRoom/PressReleases/8720-23