DANVILLE, Calif. – Peter Son, 43, has been ordered to pay a $5 million civil penalty and faces a lengthy prison sentence following a federal court order related to an $85 million foreign currency (forex) scam, authorities announced April 26, 2012. The U.S. Commodity Futures Trading Commission (CFTC) obtained a supplemental consent order from Judge Maxine M. Chesney of the U.S. District Court for the Northern District of California on April 19, 2012.
Son, of Danville, California, and his companies, SNC Asset Management, Inc., and SNC Investments, Inc., were found to have fraudulently solicited funds from at least 500 customers between 2009 and 2012. The CFTC complaint alleged that Son falsely claimed to operate successful forex trading firms and guaranteed monthly returns, creating a false impression of profitability through fabricated account statements.
The court found that only a small percentage of the $85 million raised from investors was actually traded, resulting in overall losses. Instead of trading on behalf of customers, Son misappropriated the funds to pay earlier investors, funnel money to his wife, Ann Lee, and cover personal expenses including mortgage payments and club dues.
Lee, identified as a relief defendant, was ordered to disgorge $300,000 in ill-gotten gains she received as purported wages, despite not performing any services for SNC. This is in addition to a previously imposed order of restitution exceeding $60 million in a related criminal case.
On April 9, 2010, Son pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering. He was subsequently sentenced to 180 months in prison on July 30, 2010, and ordered to pay $60,302,886.59 in restitution on October 25, 2011. The supplemental consent order permanently bars Son and his companies from engaging in commodity-related activities and registering with the CFTC.
The CFTC acknowledged the assistance of the National Futures Association, the US Attorney for the Northern District of California, the Securities and Exchange Commission, and the Financial Supervisory Service of Korea in the investigation.
Source: CFTC.gov
Related Federal Cases
- Amy Evangelista, Tax Fraud, California 2023 · Alaska
- Federal Regulators, Lifel, Securities Fraud, California 2020 · New York
- McKenzie Marie Earley, $10M Wire Fraud, C.D. California, 2023 · Alaska
- Bruce Choi, COVID-19 Relief Fraud, Los Angeles CA, 2023 · Pennsylvania
- Irina Segal, Medicare Fraud, Philadelphia PA, 2023 · California
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News