Mequon couple accused in Ponzi scheme
The federal government is suing a Mequon couple, accused of operating a multi-million dollar Ponzi scheme. The couple is also under a criminal investigation.
MEQUON, Wis. – The federal government is suing a Mequon couple, accused of operating a multi-million dollar Ponzi scheme, using investor funds for personal use, lavish vacations, luxury goods and real estate. The couple is also under a criminal investigation.
Two government agencies filed lawsuits against Kay and Chao Yang , accusing the couple of defrauding dozens of investors of millions of dollars. the IRS is also looking into the couple as part of a criminal probe.
Kay Yang is behind the development of the 5XEN Market near 76th and Mill owned by 5XEN, Inc. which lists back to their Mequon address on Hawthorne Road.
“Basically, they were going into bankruptcy, so we came together to try to save them for our Hmong community,” said Kay Yang in a Licenses Committee meeting in September 2020.
Now, it’s that same community the federal government is alleging Yang and her husband targeted as part of a multi-million dollar Ponzi scheme.
The couple is being sued by the Commodities Futures Trading Commission as well as the Securities and Exchange Commission to stop the Yangs from continuing their investment business. Investigators say the couple raised at least $16 million from 70 investors over four years. While the government says the couple did have…
