Maryland Attorney General News Releases: Attorney General Frosh, Securities Division Sanction Jung Tae Kim for Violations of Maryland Securities Act

You are subscribed to News Releases for the Maryland Attorney General. A new press release has been issued.   Did someone forward you this email? Sign up to get our Press Releases in your inbox. FOR IMMEDIATE RELEASE: November 3, 2021 Media Contacts: press@oag.state.md.us 410-576-7009 Attorney General Frosh, Securities Division Sanction Jung Tae Kim for Violations of Maryland Securities Act Kim Ordered to Return Nearly $500,000 to Victims BALTIMORE, MD – Maryland Attorney General Brian E. Frosh announced today that his Securities Division entered into a Consent Order with Jung Tae Kim, also known as Chung Tae Lee or Edward X. Kim, for violations of the Maryland Securities Act by acting as an unregistered broker-dealer and investment adviser on behalf of senior family members and a close friend.  Kim directed the victims to open accounts with a discount brokerage firm and subsequently misappropriated or otherwise obtained nearly all of their funds for his own personal use. The Securities Division investigated Kim's conduct after the brokerage firm reported suspected misconduct involving the assets of an elderly client.  The report was made after passage of legislation in 2017 (HB1149) requiring securities firms and professionals, including broker-dealers and investment advisers, to notify the Securities Commissioner of possible financial exploitation of vulnerable adults. "Taking advantage of vulnerable adults, defrauding them of their assets, is illegal," said Attorney General Frosh.  "The new law requiring  investment professionals to report cases of possible exploitation made it possible to detect and prosecute this matter." According to the Order, Kim held himself out to his victims as having formerly worked at a prominent investment bank and having a "top level" stockbroker license as well as degrees from prestigious universities.  Kim, however, has never been registered as a broker-dealer or investment adviser anywhere and does not have a college degree. Though Kim did work at an investment bank - a position he obtained by falsely claiming he had a college degree - he lost that job after committing mail fraud and student loan fraud against the firm.  He subsequently pleaded guilty to seven felony counts and served time in prison. After his release, Kim obtained, again using a fake resume, a well-paying project management job, but failed to complete the hiring process and then targeted his future in-laws.  Kim guaranteed they would not lose money.  At Kim's direction, the investors, including a close friend, established accounts with a discount brokerage firm and gave Kim complete control to manage their funds.  Kim purchased and sold securities and gradually diverted most of his in-laws' funds for his personal use and liquidated and borrowed virtually all of the funds in his friend's account. Through the Consent Order, Kim agreed to cease and desist from any violations of the Maryland Securities Act, agreed to a permanent bar from the securities industry in Maryland, and agreed to pay a fine of $475,418.18, payment of which will be used to provide restitution to the victims. Attorney General Frosh encourages investors to call the Securities Division at 410-576-6360 before they invest with anyone – even friends or family members – to verify that the individual is appropriately registered, and to inquire about any disciplinary history. In making today's announcement, Attorney General Frosh thanked Assistant Attorneys General Max F. Brauer and Oludolapo Osikomaiya, and Investigator Trinity Gainey for their work on the case. A copy of the Securities Division's Summary Order to Cease and Desist and Order to Show Cause can be found here. https://www.marylandattorneygeneral.gov/press/2021/110321.pdf   Stay Connected with the Maryland Attorney General: SUBSCRIBER SERVICES: Manage Subscriptions  |  Unsubscribe All  |  Help  |   This email was sent to stevenmagallanes520.nims@blogger.com using GovDelivery Communications Cloud on behalf of: Maryland Attorney General · 200 St. Paul Place · Baltimore, MD 21202