Bay Area Koreans Get an Apology From Ponzi Scheme Artist

Saturday, Jul 31, 2010  |  Updated 11:45 AM PDT
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Bay Area Koreans Get an Apology From Ponzi Scheme Artist

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This was not like Bernie Madoff but a Poni scheme targeting Korean-Americans still cost $62 million.

A Danville man convicted of defrauding investors out of $62 million in a Ponzi scheme that targeted Korean-Americans has been sentenced to 15 years in prison.
     
A U.S. District Court judge in Oakland also ordered 38-year-old Peter Son on Friday to pay restitution. The exact amount will be determined later.

Federal officials say Son and his business partner, 46-year-old Jin Chung of Los Altos, promised investors annual returns as high as 36 percent from foreign currency transactions. The pair allegedly snared 500 investors.

Officials say Son and Chung instead used investors' money to make cash payouts from 2003 to 2008. Son was also accused of siphoning some off for personal use.

Chung has not been charged criminally. He and Son also face a civil suit.

Son apologized to his investors before the sentencing.

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