🔒 Former Mequon funding advisor charged with fraud ordered to pay $8 million in penalties
Former Mequon funding advisor charged with fraud ordered to pay $8 million in penalties
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A former Mequon funding advisor dealing with federal fraud fees has been ordered to repay $4.06 million she obtained by making false and deceptive statements to roughly 70 traders. Kay Yang has additionally been ordered to pay a $4.06 million civil penalty, bringing her complete monetary penalties to over $8 million.
Yang and her entities Xapphire LLC and AK Fairness Group have been initially charged with violations of federal securities legal guidelines final yr.
In accordance with the SEC’s criticism, between April 2017 and April 2021, Yang and Xapphire LLC engaged within the unregistered provide and sale of securities issued by AK Fairness Group LLC and Xapphire Fund LLC. She raised roughly $16.5 million from 70 traders.
The criticism states Yang is a former tax preparer however has by no means been a CPA and has by no means been licensed by a securities regulator.
Yang’s traders have been residents of at the least eight states and a majority of them have been members of the Hmong-American communities in Wisconsin and Minnesota.
Yang and her husband used over $4 million of investor cash to pay for private bills which included playing and money withdrawals at casinos, actual property, intensive journey, luxurious cars, and the reimbursement of sure traders from a earlier enterprise.
Along with reimbursement of cash, Yang should additionally pay $188,787 in curiosity and is barred from performing as an officer or director of a public firm.
Her husband, Chao Yang, had been ordered to repay $830,502 for his function within the couple’s scheme, in addition to $38,615 in curiosity.
The U.S. District Courtroom for the Japanese District of Wisconsin granted the SEC’s movement for default judgment and entered closing judgements towards Kay Yang, Xapphire and Chao Yang.