Friday, October 31, 2008

SoCal Resident Fined $11 Million in Forex Ponzi

There's nothing like money, especially when it comes from suckers. Southern California fraudster Jinsup Choi was ordered to fork over $11 million after he was find guilty of swindling 83 people out of about $19 million over a five year period from 2002-2005.

Choi took money from investors who believed he was investing it in commodity futures. Instead, Choi took the dough and placated customers with fake account statements. In time honored Ponzi style, he fed old investors with funds fleeced from new ones.

Customer cash went for Choi's purchases of items like a yacht, cars, and bling.

Earlier this year Choi pled guilty to criminal wire fraud charges stemming from the scam.

The time frame illustrates how slow suckers are to get wise, and how equally slow the justice system works to make things right. It remains to be seen whether Choi can or will pay back investors as ordered by U.S.D.C. Judge Howard Matz.