YOU READ IT HERE FIRST: A former registered representative from Midland Park offering investment products and services admitted in federal court in Newark today that he used his position to steal more than $650,000 from the company’s clients.
Kwen Y. Chun, 58, 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.
Today he pleaded guilty to mail fraud, admitting that he opened a bank account in the name of one client and using the client’s identification without the client’s knowledge.
“Based upon false representations to the company that the client was requesting withdrawals and loans, Chun caused the company to wire monies from the client’s insurance policies and annuity accounts into the phony account,” Fishman said.
“Chun also admitted that he caused the company to mail numerous checks to his Midland Park residence based upon false representations to the company that at least three other clients had requested to take loans on their insurance policies, which he then deposited into accounts under his control,” he added.
“Chun admitted to causing other clients to obtain loans from company insurance policies, or to provide him with checks and cash, which Chun falsely advised he would use to open investment accounts on behalf of those clients,” Fishman said.
“Instead, Chun deposited those loan proceeds into bank accounts under his control.”
He also “admitted that he provided one of the company’s clients with fabricated statements that purported to show the interest and balance in the client’s fictitious investment account,” Fishman said.
Chun “also provided two other clients with paperwork that purported to illustrate the benefits that they would receive for their alleged annuity investment,” he said.
U.S. District Judge Susan D. Wigenton set sentencing for Nov. 2, 2015.
Fishman praised inspectors of the U.S. Postal Inspection Service, criminal investigators with his office, the NJ Attorney General’s Bureau of Securities and the Bergen County Prosecutor’s Office.
Handling the case for the government is Senior Litigation Counsel Leslie Faye Schwartz of Fishman’s Economic Crimes Unit and Assistant U.S. Attorney Peter Gaeta of his Asset Forfeiture and Money Laundering Unit.
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