According to an article from Delaware Online, Kyong Ho Kim, of Newark, was recently sentenced to eight years in prison for his part in an alleged investment scam that took millions from investors. Kim ran the alleged scam through his Parthenon Investment company, and many of the alleged victims of the scam shared a Korean heritage with Kim. According to prosecutors, Kim sent out fake financial statements to investors that showed investment growth while, in reality, he was pocketing investor cash for himself. Kim pleaded guilty to money laundering and wire fraud related to the case in September of last year.
Although it is believed that Kim probably turned to fraud after running into personal financial issues, including the loss of a job and problems with gambling, prosecutors in the case say that the money Kim brought in with the scam far exceeded the amount he needed to get back on his feet. In fact, prosecutors allege that 45-year-old Kim used investors’ cash to pay for a luxury lifestyle that included a yacht, a house on Chesapeake Bay, expensive cars, world travel, and a mistress.
Seven of the alleged victims of the investment scam appeared in court and told stories of the financial devastation they experienced as a result. Some victims stated that Kim was like a member of the family, and they say that he manipulated their trust in order to take their money. Victims told stories of sleepless nights, ruined retirement and college plans, and at least one victim said that “My American dream is gone right in front of my eyes.”