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- A federal court has ordered William Koo Ichioka to serve time in jail and pay over $36 million for defrauding investors through a forex and crypto scam
- Ichioka misled investors with false financial documents and diverted funds for personal luxuries, including jewelry and luxury vehicles
- Ichioka has also been sentenced to 48 months in prison, with additional supervised release and financial penalties
A U.S. District Court has imposed a 48-month prison sentence and financial penalties exceeding $36 million on a US citizen who ran a fraudulent forex and crypto investment empire. New York resident William Koo Ichioka deceived investors by falsifying financial statements and using their funds for personal expenses, including jewelry and luxury vehicles. Ichioka was indicted last year and was last week hit with the sentence after Judge Vince Chhabria agreed with The Commodity Futures Trading Commission’s (CFTC) allegations.
Fraudulent Scheme Uncovered
The CFTC revealed yesterday that Ichioka was sentenced on September 19, where he was ordered to pay $31 million in restitution to defrauded victims and a $5 million civil penalty. According to the CFTC, Ichioka orchestrated his scam in 2018, in which he falsely promised investors a 10% return every 30 business days. While he did make some legitimate investments, he soon “misused participant funds,” according to a CFTC statement.
Ichioka not only defrauded investors but also used the funds to finance an extravagant lifestyle: the court revealed that the stolen money was spent on luxury items such as jewelry, watches, and vehicles. Additionally, he falsified financial documents to conceal his misconduct, further misleading his victims.
Ichioka Pays the Penalty
In addition to the monetary penalties, Ichioka was sentenced to 48 months in prison, with the CFTC noting. “This case serves as a critical reminder to investors to exercise caution” with investment offers, urging the public to verify the legitimacy of financial firms before investing.
Indeed, the promise of outsized and regular gains are two red flags when it comes to spotting crypto investment scams.
The post Jail and $36 Million Fine for Crypto and Forex Scammer appeared first on FullyCrypto.