The Commodity Futures Trading Commission announced that the US District Court for the Eastern District of New York entered a default judgment against Safety Capital Management Inc. and GNS Capital Inc., both doing business as ForexnPower, for retail forex fraud, fraud as commodity pool operators and commodity trading advisors, and related regulatory violations. The order imposes restitution and civil monetary penalties and permanently enjoins the companies from further violations of the Commodity Exchange Act and CFTC regulations. The court adopted a magistrate judge’s findings that the firms exploited Korean-language speakers in Queens who relied on the defendants to manage their investments. Safety Capital and GNS were ordered to pay USD 835,058 in restitution, jointly and severally with defendants John H. Won and Tae Hung Kang (also known as Kevin Kang), and to pay civil monetary penalties of USD 1,441,143 (Safety Capital) and USD 186,102 (GNS), described as triple the monetary gain from the offenses. The default judgment resolves the remaining claims in the CFTC’s September 2015 complaint, following a 2022 consent order resolving claims against Kang and a 2024 summary judgment order resolving claims against Won; in the parallel criminal case, Kang pleaded guilty to securities fraud conspiracy and Won was found guilty by a jury of securities fraud and related conspiracies. The CFTC noted that restitution orders may not result in victims recovering lost funds if defendants lack sufficient assets.

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