CFTC Secures $36 Million Judgment Against New York Resident for Forex and Crypto Fraud

The U.S. Commodity Futures Trading Commission (CFTC) announced that Judge Vince Chhabria of the U.S. District Court for the Northern District of California issued an order imposing monetary relief totaling more than $36 million against William Koo Ichioka, a New York City resident who formerly resided in San Francisco: $31 million in restitution to defrauded victims and a $5 million civil monetary penalty for his fraudulent forex and digital asset fraud scheme.

On Aug. 14, 2023, the court entered an initial consent order of permanent injunction against Ichioka, finding that the defendant engaged in a fraudulent scheme beginning in 2018 in which he accepted investment funds from participants with false claims of a 10% return every 30 business days. Although Ichioka invested some funds in forex and digital asset commodities, he commingled participant money with his own funds and used participant funds for his own personal expenses, including, among other things, rent for his personal residence, jewelry, watches, and luxury vehicles. To conceal his fraudulent activity, Ichioka overstated the value of assets he held by generating false financial documents and presenting false account statements to participants.

The initial consent order enjoining Ichioka from future violations of the Commodity Exchange Act (CEA) and CFTC regulations, prohibiting him from trading in any CFTC-regulated markets and from registering with the CFTC, along with the monetary relief order announced on September 19, resolved the CFTC's enforcement action against Ichioka.

Additionally, on June 22, 2023, the Department of Justice charged Ichioka with one count of wire fraud, two counts of preparing false tax returns, one count of fraud in connection with the purchase and sale of securities, and one count of commodities fraud, all based on the same conduct alleged in the CFTC’s complaint. Ichioka pled guilty to these charges the same day. Ichioka subsequently was sentenced to 48 months in prison, given an additional term of 5 years of supervised release, and ordered to pay a $5 million fine, and $31,330,715.86 in restitution to victims.