Monday, 26 September 2016
Last updated 8 min ago
Jul 18 2008 | 11:07am ET
The day of reckoning for two of the masterminds behind the KL Financial hedge fund fraud came yesterday in a federal courthouse in Palm Beach, Fla.
Jung Bae Kim, better known as John Kim, and his brother Yung Bae Kim, were sentenced to 18⅓ years and 6¼ years, respectively, and ordered to pay more than $75 million in restitution for their role in the Ponzi scheme.
The two brothers, along with Won Sok Lee, who remains at large, were principals at Palm Beach-based KL. Between 2000 and 2005, prosecutors say the men defrauded investors of some $194 million, of which just $6.5 million has been recovered.
In addition to the prison term and restitution order, the sentences include three years of supervised release. Both Kims struck a plea deal pleading guilty to wire fraud and Jung Kim pleading guilty to conspiracy to commit wire fraud.