Judge Vince Chhabria of the US District Court for the Northern District of California handed down the order against William Koo Ichioka, a New York resident and former San Francisco local, assessing over $36 million in fines and restitution, the CFTC stated.
Ichioka was ordered to pay $31 million in restitution to victims he defrauded, along with a $5 million civil monetary penalty for his involvement in a fraudulent scheme centered on foreign currency (forex) trading and digital assets.
The case against Ichioka dates back to June 2023, when the CFTC revealed he had embezzled millions through a fraudulent investment scheme involving cryptocurrencies like Bitcoin and Ether, as well as forex. He lured investors by promising returns of 10 percent every 30 working days through a supposed commodities investment fund.
Instead, Ichioka used client funds to fuel a lavish lifestyle, paying for rent, luxury cars, fine dining, bars, gym memberships, and high-end watches, all while deceiving investors about the state of their money.
In his defense, Ichioka claimed he had built a multimillion-dollar fortune from a young age. However, he admitted to mixing investor money with his own and using the funds to settle personal debts and bankroll his lifestyle.
In July 2023, Ichioka pleaded guilty to criminal charges, including wire fraud, aiding and abetting, and securities and commodity fraud.
He was sentenced to four years in prison and ordered to pay a $5 million fine.
Alongside the CFTC action, both the US Attorney’s Office for the Northern District of California and the U.S. Securities and Exchange Commission also filed complaints against him.
The CFTC has recently noted a surge in fraud within the forex market and has issued new guidelines to help investors protect themselves from scams.