{"id":20902,"date":"2016-02-29T18:53:13","date_gmt":"2016-03-01T02:53:13","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=20902"},"modified":"2016-02-29T18:53:13","modified_gmt":"2016-03-01T02:53:13","slug":"20902-2","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=20902","title":{"rendered":"Attorney Sentenced to Five Years in Federal Prison for Stealing $8 Million from Dozens of Clients"},"content":{"rendered":"

\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0LOS ANGELES<\/span><\/span><\/strong><\/p>\n

\n

An attorney who pleaded guilty to wire fraud and tax evasion charges \u2013 and who prosecutors say defrauded a dozen clients out of at least $8 million in an investment fraud scheme \u2013 was sentenced today to five years and three months in federal prison.<\/span><\/p>\n

Stephen Young Kang,<\/strong> 46, of Newport Beach, was sentenced by U.S. District Judge George H. Wu, who rejected the defendant\u2019s request for a three-year sentence.<\/span><\/p>\n

During today\u2019s sentencing hearing, several of Kang\u2019s victims described in detail the devastating financial and emotional impact of the fraud scheme. Two of the victims commented that Kang\u2019s fraud led to the \u201cdarkest years\u201d of their lives.<\/span><\/p>\n

\u201cThe defendant conned his victims, in part, by using the veneer of his legal practice to lend legitimacy to his scheme,\u201d said David Bowdich, the Assistant Director in Charge of the FBI’s Los Angeles Field Office.<\/strong> \u201cMultiple agencies worked collaboratively to successfully investigate this case, including IRS agents and detectives with LAPD, whose contribution was significant.”<\/span><\/p>\n

In the agreement, Kang admits that beginning as early as October 2012, and continuing through in or about at least September 2015, in Los Angeles and Orange Counties, and elsewhere, intended to defraud his clients.<\/span><\/p>\n

He admitted in court today that he defrauded a food distribution company, Ottogi America, Inc., that hired the attorney to help the company purchase properties near its distribution center in Gardena.<\/span><\/p>\n

Ottogi wire transferred funds to a trust account in Houston, Texas, to be used for the purchase of the properties. \u00a0But Kang admitted that he did not use the money to invest in properties, according to authorities.<\/span><\/p>\n

Rather, officials said Kang admitted that he caused the funds to be transferred to other accounts that he controlled.<\/span><\/p>\n

Prosecutors believe that Kang then used a substantial portion of Ottogi\u2019s money to pay for personal expenses and business ventures, as well as to make partial payment to other victims, officials said.<\/span><\/p>\n

Kang also admitted that he defrauded a Texas victim out of $500,000 in 2013 by falsely representing that he would invest the $500,000 in a company called Pegasus Capital Ltd., LLC.<\/strong><\/span><\/p>\n

When the victim demanded repayment, officials indicated that Kang agreed in September 2015 \u2013 which was after he was initially indicted in this fraud case \u2013 to provide the victim with a \u201cfirst priority security interest\u201d in a term life insurance policy.<\/span><\/p>\n

Kang, however, failed to disclose to the victim that the life insurance was worth only $250,000, that Kang\u2019s wife was the sole beneficiary of the policy, and that the policy was first applied for and approved on Aug. 28, \u00a0according to officials.<\/span><\/p>\n

Prosecutors believe that Kang offered, and in some cases provided, the same life insurance policy to other victims.<\/span><\/p>\n

In relation to the tax evasion count, officials said Kang admitted that he received at least $1.5 million in income in 2013, but failed to pay a federal income tax return for calendar year 2013 and using corporate accounts to conceal the income he received, officials said.<\/span><\/p>\n

\u201cProfessionals, including attorneys, who use their position of trust to create elaborate schemes that have no purpose other than to mislead others and defraud the IRS will be prosecuted to the full extent of the law,\u201d stated Acting Special Agent in Charge Anthony Orlando of IRS Criminal Investigation<\/strong>. \u201cToday\u2019s sentence reinforces our commitment to every American taxpayer to identify and prosecute those who devise illegal investment schemes designed to promote their own wealth and evade their tax obligations.\u201d<\/span><\/p>\n

Kang was ordered to return to court on March 28 for a hearing to determine the amount of restitution he will be ordered to pay to his victims.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

An attorney who pleaded guilty to wire fraud and tax evasion charges \u2013 and who prosecutors say defrauded a dozen clients out of at least $8 million in an investment fraud scheme \u2013 was sentenced today to five years and three months in federal prison.<\/p>\n

Stephen Young Kang, 46, of Newport Beach, was sentenced by U.S. District Judge George H. Wu, who rejected the defendant\u2019s request for a three-year sentence.<\/p>\n","protected":false},"author":1,"featured_media":16417,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3],"tags":[473,2289],"class_list":["post-20902","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-main-slider","category-u-s-department-of-justice","tag-fraud","tag-newport-beach-attorney"],"yoast_head":"\nAttorney Sentenced to Five Years in Federal Prison for Stealing $8 Million from Dozens of Clients<\/title>\n<meta name=\"description\" content=\"An attorney who pleaded guilty to wire fraud and tax evasion charges \u2013 and who prosecutors say defrauded a dozen clients out of at least $8 million in an investment fraud scheme \u2013 was sentenced today to five years and three months in federal prison. 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