The United States Securities and Exchange Commission recently filed fraud charges against Kay X. Yang, a Chinese investment adviser from Wisconsin, alleging that Ms. Yang used false and misleading investment statements to raise $16.5 million from more than 70 investors between 2017 and 2021. But more than $4 million was misappropriated and used for personal purposes!

According to the indictment, Ms. Yang falsely claimed that she could help investors invest in foreign exchange trading, and promised high annual returns, but in fact there was no such foreign exchange investment with high interest and capital protection!

Factual process

In the past, Ms Yeung has been a tax preparer, but she has not worked as a certified public accountant, not to mention the so-called SFC licence. In 2017, Ms. Yang launched two companies that she effectively controlled, AK Equity Group LLC and Xapphire Fund LLC, and lured investors by falsely claiming that the companies had foreign exchange retail investment credentials.

In addition, Ms. Yang told investors that the company could help them make money by investing in foreign exchange trading, and promised annual returns of between 20 and 50 percent. It also repeatedly used false reports to encourage investors to invest, showing that AK Equity and Xapphire Fund had been profitable.

In just a few years, Ms. Yang's company attracted more than 70 private investors from eight continents, most of them from the Chinese communities in Wisconsin and Minnesota, and by the time she was charged, Ms. Yang had raised $16.5 million!

At first, Ms. Yang really took out some investors' funds to start foreign exchange trading, but the rate of return was not ideal, and most of them were in a loss state. But in order to satisfy her own selfish desires, Ms. Yang hid the truth and used the funds of these investors for personal expenses. According to the findings, $4.06 million of the $16.5 million raised was spent on personal travel: $1.5 million to buy real estate; $790,000 for living expenses; $585,000 for personal and family travel; 313,000 US dollars to buy a luxury car, in addition to Ms. Yang and his wife also withdraw cash, to Las Vegas, Atlantic City, New Jersey and other different gambling agencies gambling! At the same time, in order to maintain the illusion of profit, Ms. Yang also used some of the funds to repay the first batch of investors.

But the fake is fake after all, Ms. Yang's scam was finally discovered, after all, most investors did not get the promised annual return.

Content of prosecution

Now, the Securities and Exchange Commission has filed fraud charges against Ms. Yang and is seeking an injunction, a hefty civil penalty and a ban on Ms. Yang from serving as an officer or director of a public company.

In July 2020, the Securities Division of the Wisconsin Department of Finance issued a warning against Ms. Yang, indicating that two of her registered companies, AK Equity Group LLC and Xapphire Fund LLC, were not registered with the Wisconsin Department of Securities. And raising millions of dollars from investors without registering as an investment adviser has been a serious violation of local law. At the same time, the securities division ordered Ms. Yang to pay $16.9 million in restitution to investors, return $4.2 million in profits, and pay a $50,000 civil penalty.

So far, however, Ms. Yang has not returned the funds raised by investors, insisting that she will use her funds to pay back investors' repayment requests, and because of her Fifth Amendment privilege, Ms. Yang has opposed filing more documents, so the case has been locked in a stalemate.

Sum up

However, it is undeniable that Ms. Yang did defraud more than 70 investors by fabricating high-return foreign exchange investment, which is a typical foreign exchange investment fraud! Forex trading investment in the final analysis is just an investment, there is the possibility of making a lot of money at the same time means high risk, when someone or a company dares to guarantee high returns is 100% fraud! If you really can't tell the truth about forex investment, it is better to learn to check the truth of the platform before choosing!