- 2002
Defendant Jung was the manager of an unregistered, private hedge fund, Strategic Income Fund, L.L.C., and allegedly engaged in a scheme to defraud the fund’s investors. Investors were solicited with false performance reports that materially overstated Jung’s/the fund’s prior trading record, and told that assets would be used solely to conduct the fund’s business. However, Jung, acting through his broker-dealer, used them to collateralize his own personal margin trading, resulting in the loss of more than $21 million invested by 60 investors. He was sent to jail for 9 years in a parallel proceeding.
