The US’s CFTC conducted a civil enforcement act against one Kay Yang and her two proprietary companies. Yang, AK Equity Group LLC and Xapphire LLC, were charged for forex fraud this Wednesday, as well as fund misappropriation. They are held accountable for soliciting mor than $15.7 million from 67 investors.
In a typical scammer investor move, the company made false promises and representations of what the clients’ money would be used for. The lies included the management of the millions of dollars in various investment opportunities that were promised to turn into hefty profits. On top of that , the perps were able to persuade users into believing that the firms we allocating the funds to forex trading activities.
The CFTC detailed that the scheme ran its course for almsot 3 years, from April 2017 till March of 2020.
Yang also used client money for her own expenses and indulgences; $200 000 were transferred to her personal bank account, plus an additional $1.4 million to her husband’s one. There is also the issue of the $1 million dollars placed in a joint account in the name of the wife and husband duo.
The CFTC is currently in the process of reimbursing the stolen money to the relevant parties, as well as imposing civil monetary penalties, permanent bans on both registration and all trading activities.