A Korean American businessman was sentenced to 6½ years in prison yesterday for operating a Ponzi scheme which bilked fellow Korean Americans out of $8.5 million, according to news reports.
Euirang “Chris” Hwang, 38, was also ordered to pay more than $7 million in restitution, according to the Orange County Register.
Hwang, a naturalized U.S. citizen, was arrested in Corona, Calif. by the FBI in March 2010, along with his girlfriend Sang Yi, 41, who is a co-defendant in the case.
Hwang, the founder and chairman of Irvine-based investment firm, Pinupito, and Yi, described as the president and secretary, promised their investors annual returns of up to 45 percent, claiming the company was buying up smaller Korean companies, and then selling them for a large profit, according to the news release from the U.S. Attorney’s Office.
Hwang falsely claimed to be a billionaire whose company had extensive holdings in Korean businesses and real estate, the release said.
Authorities said that the couple marketed Pinupito to some investors through meetings held at Korean-language churches.
The newspaper reported that Hwang and Yi used the money given to them to pay for luxury cars, personal expenses, as well as returns to existing investors. Yi is expected to be sentenced later his year.
[ad#bottomad]
