TRENTON, N.J. (AP) - State officials have revoked the registration of a former securities broker who they say stole hundreds of thousands of dollars from at least eight clients.
The New Jersey Bureau of Securities also fined Kwen Young Chun, a Midland Park resident who recently pleaded guilty to federal mail fraud charges. He now faces up to 20 years in prison and a $250,000 fine when he’s sentenced Nov. 2.
Bureau investigators found that Chun engaged in dishonest or unethical conduct with several customer accounts. They alleged he took customer funds without authorization and unlawfully deposited them into his own bank account or into an account he controlled, using the identity of one of his customers.
Officials said Chun used the funds for his and his family’s personal benefit.
In one instance, Chun stole client funds earmarked for the purchase of an annuity that in reality was never purchased, authorities said.
In another matter, a client obtained a loan from his life insurance policy, with the intent that Chun would invest the funds. But authorities said Chun instead transferred the money for his personal use.
“Chun took advantage of vulnerable investors, many of whom had limited English speaking abilities or did not understand what Chun was purporting to do with their money,” said Laura H. Posner, chief of the securities bureau.
A telephone number for Chun could not be located Sunday.
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