Federal Judge Orders William Koo Ichioka to Pay $36 Million in Restitution for Fraudulent Scheme
In a recent announcement by the Commodity Futures Trading Commission (CFTC), a federal judge has ruled that William Koo Ichioka must pay over $36 million in restitution and fines for his involvement in a fraudulent forex and digital asset scheme.
According to the CFTC, Ichioka orchestrated a large-scale fraud that resulted in the defrauding of over 100 investors out of tens of millions of dollars through trading in cryptocurrencies, securities, and other investment vehicles.
The order was issued on Sept. 19 by Judge Vince Chhabria of the U.S. District Court for the Northern District of California. As part of the ruling, Ichioka is obligated to pay $31 million in restitution to victims and an additional $5 million in civil monetary penalties.
The fraudulent scheme, which began in 2018, involved Ichioka soliciting investment funds under false promises of a 10% return every 30 business days. Despite some funds being invested in forex and digital asset commodities, Ichioka mingled the money with his personal finances.
He used the funds for personal expenses, including luxury items like jewelry, watches, and luxury vehicles. To cover his tracks, Ichioka provided investors with falsified financial documents and account statements.
In August 2023, Ichioka was banned from trading in any CFTC-regulated markets and barred from registering with the CFTC following a permanent injunction by the court.
Furthermore, Ichioka faced parallel criminal charges from the Department of Justice, resulting in him pleading guilty to multiple counts of fraud and receiving a 48-month prison sentence. He was also mandated to pay $31 million in restitution and a $5 million fine, in addition to 5 years of supervised release.
The CFTC stressed the importance of verifying the registration of individuals or companies offering financial services and cautioned the public about common fraud indicators in its Commodity Pool Fraud and Forex Fraud advisories. Whistleblowers who report violations may be eligible to receive 10 to 30 percent of monetary sanctions collected.