William Koo Ichioka has been ordered by Judge Vince Chhabria of the U.S. District Court for the Northern District of California to pay a total of $36 million to his clients and victims due to accusations of misappropriating investor funds. The judgment includes $31 million in restitution to defrauded victims and a $5 million civil penalty.
This ruling was announced in a statement from the U.S. Commodity Futures Trading Commission (CFTC), which highlighted that the order was issued on September 19. The CFTC detailed that Ichioka, a former resident of San Francisco now based in New York, was involved in fraudulent activities related to foreign currency (forex) and digital assets.
According to the CFTC, Ichioka misled clients about their investments and diverted their funds to cover personal expenses such as rent, dining, transportation, gym memberships, luxury watches, and vehicles.
In June 2023, the CFTC charged Ichioka with misappropriating funds from a combined cryptocurrency and forex scheme, including assets like Bitcoin and Ether that belonged to his investors.
In his defense, Ichioka claimed to have started his financial journey at a young age and asserted that he had built a multimillion-dollar fortune. He promised investors a 10% return every 30 business days through his investment scheme. However, he ultimately mixed investor funds with his personal finances, using them to pay various personal bills and sustain his lifestyle.
Ichioka pleaded guilty to criminal charges in July 2023, including wire fraud, aiding and abetting, and securities and commodity fraud. He was subsequently sentenced to four years in prison and ordered to pay a $5 million fine.
