In California, Securities Fraud Defendant Arrested

California District Attorney, Oct 26, 2006

LOS ANGELES – Investigators with the District Attorney’s Bureau of Investigation arrested a Los Angeles man on a warrant charging him with securities fraud involving Korean-American community investors who lost more than $1.9 million.

The arrest of Robin K. Cho, 47, outside a Department of Corporations administrative hearing in downtown Los Angeles culminated a three-agency investigation that started after investors complained to authorities.

In a 118-count criminal complaint filed, Cho was accused of taking the money from 11 investors between 1998 and 2003. The complaint alleges that when investors became suspicious because they were not getting promised payments, Cho told them various stories – most of them blaming the 9/11 terrorist attack - for failure to pay.

Investors eventually went to authorities, including the Los Angeles Police Department and the District Attorney’s office. The Department of Corporations issued a cease and desist order for Cho. The agencies worked together on the investigation, headed by the District Attorney’s Bureau of Investigation that culminated in yesterday’s criminal complaint. Deputy District Attorney Richard A. Lowenstein of the Major Fraud Division will prosecute the case.

After the Department of Corporations issued the cease and desist order against Cho, he appealed, resulting in today’s hearing at the Department of Corporations office on Fourth Street in downtown Los Angeles. Cho was arrested without incident outside the hearing room. He was booked and jailed on $1.9 million bail. He is expected to be arraigned in Los Angeles Superior Court Division 50.

Lowenstein said Cho offered and sold securities to the 11 investors, at least one a college friend, with a guaranteed return of the initial investment at the end of a contact period upon request. He offered 4 percent to 6 percent interest monthly. The prosecutor said the defendant indicated the investments would be low-risk, but instead were high-risk and the defendant lost the money.

The complaint alleged that $1,986,000 in investments was involved in the various felony crimes.

Lowenstein said that if Cho is convicted as charged, he faces a possible maximum state prison term of 61 years and eight months.