Washington, D.C. — The Commodity Futures Trading Commission today announced the U.S. District Court for the Eastern District of New York entered a final judgment and consent order on August 31 for a permanent injunction, monetary sanctions, and equitable relief against Tae Hung Kang, a/k/a Kevin Kang, of Queens, New York.
The order resolves the CFTC’s claims against Kevin Kang in the CFTC action filed against him, Sungmi Kang, John Won, Safety Capital Management, Inc., and GNS Capital Inc., both doing business as ForexnPower, on September 25, 2015. [See CFTC Press Release No. 7245-15] The complaint alleged, among other things, fraudulent solicitation, which included misrepresentations in advertisements placed in Korean language newspapers, of over $1.5 million from customers to trade off-exchange foreign currency (forex) and misappropriation of over $800,000 of customer funds. The CFTC action against the other defendants is ongoing.
The order requires Kang to pay $835,058 in restitution to victims of the fraudulent scheme. The order also permanently prohibits Kang from further violations of the Commodity Exchange Act (CEA) and CFTC regulations, as charged, and imposes a permanent registration and trading ban.
Case Background
The order finds between October 2010 and December 2013, Kevin Kang was the CEO and an associated person of Safety Capital d/b/a ForexnPower, which was a retail forex commodity trading advisor and retail forex commodity pool operator. Kang…
