$80 Million Ponzi Scheme pushes HedgeTracker’s 'Hall of Fraud' Closer to $83 Billion

June 9th, 2009
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The SEC announced that it has halted yet another Ponzi Scheme, charging two California men for allegedly conducting an $80 million fraud that targeted Korean-Americans as well as residents of South Korea and Taiwan. The scheme was orchestrated by Peter C. Son and Jin K. Chung who have operated SNC Asset Management, Inc. (SNCA) and SNC Investments, Inc. (SNCI) since 2003.

With the addition of SNC, HedgeTracker.com’s infamous “Hall of Fraud” list now includes 58 firms that have allegedly taken almost $82,856 million dollars from unknowing investors. Unfortunately for Californians, June has been not been kind to residents of the Golden State. Just last week, former Countrywide Financial CEO Angelo Mozilo was charged by the SEC for alleged securities fraud and insider trading.

SNC Asset Management, which had offices in Pleasanton, California and New York City, promised investors annual returns of up to 36%. Messrs Son and Chung claimed that they were employing a forex trading strategy, when it fact it is believed that they were just using new investment dollars to pay-out earlier investors and for their own personal use.

According to an SEC statement, the partners "placed ads in Korean-language newspapers and used sales agents to target Korean-Americans in typical affinity fraud fashion as they preyed on the trust within close-knit communities."
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For Detailed Investor Profiles on these Investors, click below:
SNC Asset Management, Inc.
Related People: Jin K. Chung; Peter C. Son
Related Article Tags: Hedge Fund Fraud and Ponzi Scheme News

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