Victims Sought in Connection with Alleged Fraud Scheme Operated by Irvine Mother and Son Who Promised Victims Large Returns on Investments They Were Told Would Fund Political Trips
|FBI Los Angeles November 01, 2011|
FBI investigators are seeking what they believe to be additional victims of an investment scheme allegedly operated by defendants in Irvine, California, announced Steven Martinez, Assistant Director in Charge of the FBI in Los Angeles, and André Birotte Jr., the United States Attorney in Los Angeles.
A federal grand jury returned an indictment earlier this month charging two Irvine residents with defrauding several victims by falsely claiming that invested funds would be used to sponsor political visits to China and Taiwan by prominent politicians.
Jack Hu, 26, and his mother, Kuei Fuang Tsuei Hu, 62, both of Irvine, were each charged with three counts of wire fraud. Jack Hu was also charged with one count of misusing of the Great Seal of the United States.
The indictment alleges that the defendants told victims that their funds would be invested in Jack Hu’s company, London International Group, and that the money would be used to sponsor visits to China by former Presidents George W. Bush and William J. Clinton, or for a visit to Taiwan by former Vice President Al Gore. Victims, who were primarily Chinese-Americans, were promised that they would receive substantial returns on their investments, ranging from 3 to 10 percent, per month.
The defendants failed to disclose to investors that a significant portion of the invested funds were being diverted for the defendants’ personal use, including to fund large amounts of gambling activity in Las Vegas casinos, according to the indictment.
The indictment further alleges that Jack Hu knowingly displayed a printed likeness of the Great Seal of the United States on a business card that identified him as the “Chairman” of the United States Senate Advisory Committee, for the purpose of conveying a false impression of sponsorship or approval by the United States government.
The defendants, Jack Hu, and Kuei Fuang Tsuei Hu, were arrested by the FBI on October 10th and October 13, respectively. Both are being held without bond.
If convicted of the three counts of wire fraud, the defendants would each face a statutory maximum sentence of 60 years in federal prison.
This investigation is being conducted by the Federal Bureau of Investigation. Members of the public who believe they may have been a victim of the alleged fraud for which Jack Hu and Kuei Fuang Tsuei Hu are charged, are urged to contact the FBI’s Santa Ana office at 714 542-8825. Since investigators believe there may be victims that haven’t yet been identified, photographs of the defendants are being released to aid potential victims.
This case is being prosecuted by the United States Attorney’s Office.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.