- Federal court ordered William Koo Ichioka to pay $31 million in restitution and $5 million in monetary penalty.
- The New York resident was charged and ordered to pay the total $36 million for defrauding victims in a forex and crypto scheme.
A New York man is to pay a total of $36 million for defrauding victims in a scheme involving forex and crypto.
In a press release on Sept. 20, the CFTC said William Koo Ichioka, formerly of San Francisco, will pay $31 million in restitution to the victims of his fraudulent scheme and $5 million in civil monetary penalty.
The fine was handed by Judge Vince Chhabria of the U.S. District Court for the Northern District of California in an order given on Sept. 19.
CFTC filed charges against Ichioka in June 2023
The CFTC filed a civil enforcement action against Ichioka in June 2023. The charges involved the fraudulent soliciting and stealing over $21 million from more than 100 commodity pool participants. Ichioka admitted to the charges and agreed to an order of judgment.
Allegations against Ichioka related to a scheme from 2018 that lied to unsuspecting participants in investment funds.
The individual claimed investors would get a 10% return on their funds every 30 days. However, this did not happen and Ichioka commingled funds from victims with his own money, using these funds on personal expenses such as rent, jewelry and luxury vehicles.
“To conceal his fraudulent activity, Ichioka overstated the value of assets he held by generating false financial documents and presenting false account statements to participants,” CFTC noted in the press release.
Parallel criminal case
Ichioka also pleaded guilty to charges filed by the Department of Justice in June 2023, with the case running parallel to the CFTC complaint. Charges included wire fraud, false tax returns and commodities fraud. For the five counts, the court sentenced Ichioka to 48 months in prison.
He also received a 5-year supervised release sentence. The court imposed a $5 million fine and $31,330,715.86 in restitution.
On August 14, 2023, the court ordered a permanent injunction and prohibited Ichioka from any future violations. He was also barred from trading in any CFTC-regulated markets or registering with the regulator.
According to the CFTC, that order and the monetary penalty mark the end of CFTC’s enforcement action against the New York resident.