Whitestone Man Convicted In Cash Ploy Aimed At Korean New Yorkers

BAYSIDE, QUEENS — A northeast Queens man defrauded Korean Americans in Queens of hundreds of thousands of dollars, a federal jury found on Tuesday.

Between Feb. 2012 and Dec. 2013, John Won, of Whitestone, urged people to invest and buy stock in his foreign exchange trading company, ForexNPower, under the false pretense that investors would receive 10 percent monthly returns at no risk of loss, the jury found.

His company, however, had no special trading method, and all of its investors — who were disproportionately Korean Americans, since Won advertised in Korean-language newspapers and radio stations — suffered losses.

Won also falsely urged investors to buy stock ForexNPower-approved stock, under the guise that the funds would be used to expand the business and trade foreign currencies. In reality, a significant amount of that money was used on the fraudulent advertisements.

United States Attorney Breon Peace called the scheme a "web of false promises, lies and deceit. Today's verdict demonstrates the resolve of this Office and our law enforcement partners to prosecuting those who engage in fraud and betray the trust of their investors," he added.

Won worked alongside Tae Hung Kang, also known as Kevin Kang, who pleaded guilty to conspiracy to commit securities fraud in March of this year, according to the justice department. Kang, who lives in Bayside, is still awaiting sentencing.

After a week-long trial, Won was convicted by a federal jury in Brooklyn on five counts, including securities fraud, wire fraud, money laundering conspiracies, and substantive securities fraud.

He will face up to 20 years in prison when sentenced, the justice department reported.