A $2.5 million investment fraud scheme has led to the conviction of a 52-year-old Korean man in Virginia who prosecutors say diverted investors’ money for personal use and later concealed assets during bankruptcy proceedings.
A federal jury in Alexandria, Virginia, on Sept. 8 found Jihoon Park, a resident of Chantilly, guilty of three counts of wire fraud and two counts of bankruptcy fraud.
According to the U.S. Department of Justice, Park persuaded acquaintances to entrust him with their money by promising to invest it on their behalf and grow their assets.
Prosecutors said Park gained his victims’ trust by citing personal connections and his previous relationships with major financial institutions. He allegedly led investors to believe he could protect their principal while generating high returns.
Instead, prosecutors said, Park did not invest the money as promised.
After receiving funds from multiple victims, Park transferred the money into accounts he controlled and used it for personal purposes, including purchasing a home and cryptocurrency.
The scheme continued even after one of the victims filed a lawsuit against Park, according to federal prosecutors.
Park transferred assets to his wife, concealed millions of dollars worth of cryptocurrency and then filed for bankruptcy.
During the bankruptcy proceedings, Park falsely claimed that he had just 34 cents in financial assets and owned no cryptocurrency, prosecutors said.
Federal prosecutors said Park had promised victims that he would generate high returns by investing their life savings and retirement funds.
Instead, prosecutors said, he diverted millions of dollars entrusted to him for his own financial benefit.
Park is scheduled to be sentenced on Dec. 10.
He faces up to 20 years in prison on each wire fraud count and up to five years in prison on each bankruptcy fraud count.
