A jury in Brooklyn Federal Court has found John Won guilty on charges of securities fraud, money laundering conspiracies, and especially large-scale securities fraud. When sentenced, Won faces a maximum of 20 years in prison.
Between February 2012 and December 2013, Won and accomplices participated in a scheme to defraud victims of the Korean American community in New York, forcing them to invest in foreign exchange trading accounts with their company ForexNPower.
The conspirators published advertisements claiming that ForexNPower had a secret algorithmic trading method used to trade in the foreign exchange market, which guaranteed investors a 10% monthly return without the risk of loss. The conspirators also forced investors to buy shares issued by ForexNPower, lying to them that the invested funds would be used to expand the business. In fact, fraudsters misappropriated a significant portion of the funds, spending the rest.