A New York man has been ordered to pay a whopping $36 million in restitution and penalties for defrauding victims in a scheme involving forex and cryptocurrency. William Koo Ichioka, a former resident of San Francisco, was charged and ordered to pay $31 million in restitution to the victims of his fraudulent scheme, along with a $5 million civil monetary penalty by a US federal court.
The fine was issued by Judge Vince Chhabria of the US District Court for the Northern District of California in an order given on September 19. The Commodity Futures Trading Commission (CFTC) filed charges against Ichioka in June 2023, which led to the recent ruling.
The charges against Ichioka involved the fraudulent soliciting and stealing of over $21 million from more than 100 commodity pool participants. Ichioka admitted to the charges and agreed to an order of judgment related to a scheme from 2018 that deceived unsuspecting participants in investment funds.
Ichioka falsely promised investors a 10% return on their funds every 30 days but instead used their money for personal expenses such as rent, jewelry, and luxury vehicles. To cover up his fraudulent activities, he overstated the value of assets he held by generating false financial documents and presenting false account statements to participants.
In addition to the civil enforcement action by the CFTC, Ichioka also faced criminal charges filed by the Department of Justice. The criminal case ran parallel to the CFTC complaint and included charges of wire fraud, false tax returns, and commodities fraud. Ichioka pleaded guilty to these charges and was sentenced to 48 months in prison, along with a 5-year supervised release sentence.
The court imposed a $5 million fine and ordered Ichioka to pay $31,330,715.86 in restitution to the victims of his fraudulent scheme. A permanent injunction was also issued, prohibiting Ichioka from any future violations and barring him from trading in any CFTC-regulated markets or registering with the regulator.
The CFTC stated that the order and monetary penalty mark the end of their enforcement action against Ichioka. The case serves as a warning to individuals engaging in fraudulent schemes involving forex and cryptocurrency, highlighting the serious consequences of such criminal activities.