New York (HedgeCo.Net) – The Securities and Exchange Commission has charged John H. Min and his company, Dime Financial Group LLC, in an investment scheme targeting churches and senior citizens.
The Tacoma, Washington resident was accused of bilking over $6 million from church members by leading them to believe their contributions were going to charitable causes in third world countries. By setting up a not-for-profit entity and convincing investors that Dime was a low-risk investment for retirement funds, Min was able to sign up over 60 investors since 2005.
Investors were told their money was going to be traded in the Forex market and that returns could be as high as 800 percent annually. Instead, Min lost about $5 million in the Forex market and used about $1.4 million of his client’s money to fund his lavish lifestyle and pay for private school tuition for his children.
To hide his massive losses on the Forex market, Min doctored performance reports to showcase high returns. To keep a flow of new clients coming in, Min “associated himself with a tight-knit religious and philanthropic community.”
“Investors need to be wary of possible fraud schemes even when the person offering the investment appears to be part of a humanitarian, religious or other community of trust,” said Marc Fagel of the SEC’s San Francisco Regional Office.
In addition to the SEC seeking a civil injunction and the return of investor funds, Min also faces criminal charges.
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