YOU READ IT HERE FIRST: The New Jersey Bureau of Securities today issued an order that revoked the registration of a Midland Park man who admitted stealing hundreds of thousands of dollars from at least eight of his clients and using investor funds for his and his family’s personal benefit.
Kwen Y. Chun, 58, took a guilty plea in federal court in Newark on Wednesday, admitting that he stole more than $650,000 from the company’s clients.
Chun was working as a registered agent for the company when he “diverted funds that belonged to at least eight clients to bank accounts under his control and converted those funds to his own use,” U.S. Attorney Paul J. Fishman said on Wednesday. READ MORE….
“As a result of the action taken by the Bureau of Securities and others, Chun will no longer pose a threat to hard-working people who are seeking to build their assets,” acting New Jersey Attorney General John J. Hoffman said.
Bureau investigators found that Chun, a former employee at MetLife Securities, Inc., “engaged in dishonest or unethical conduct with at least nine customer accounts,” Hoffman said.
“He stole customer funds without authorization and unlawfully deposited them into his own bank account or into an account he controlled, using the identity of one of his customers,” he added. “Chun then used the funds for his own personal benefit, and also for the benefit of his wife and daughter.”
“In order to conceal his deceit, Chun stole a client’s identity to create a bank account, so that he could transfer the defrauded funds for his own use,” said Steve Lee, acting Director of the New Jersey Division of Consumer Affairs. “His attempts at covering his tracks ultimately failed due to the hard work of the Bureau of Securities and others.”
In one instance, authorities said, Chun stole client funds earmarked for the purchase of an annuity that in reality was never purchased. In another, a client “obtained a loan from his life insurance policy, with the intent that Chun would invest the funds,” Hoffman said. “Instead, Chun transferred the money for his own use.”
Laura H. Posner, chief of the New Jersey Bureau of Securities, said that Chun “took advantage of vulnerable investors, many of whom had limited English speaking abilities or did not understand what Chun was purporting to do with their money.
“The Bureau urges people not to take part in any investment unless you first have a clear understanding of what the investment is and what the benefits and risks of the investment are – particularly where, as here, you are being instructed to sell out of a previously-held product for a new product that promises higher returns,” she added.
Rudolph G. Bassman, the chief of enforcement for the Bureau of Securities, led the state investigation. Deputy Attorney General Isabella Stempler from the Division of Law’s Securities Fraud Prosecution Section represented the state, with the assistance of Division of Law attorney Brian DeVito
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