Rochester Man Arrested and Charged with Commodities Fraud

ROCHESTER, NY—U.S. Attorney William J. Hochul, Jr. announced today that John A. Zdanecis, 77, of Rochester, New York, was arrested and charged by criminal complaint with commodities fraud. The charge carries a maximum penalty of 25 years in prison, a $250,000 fine, or both.

Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, from 2003 through 2010, Zdanecis defrauded two investors in a commodity pool that he operated under the name of Comtra Limited. The defendant promised to invest their money in commodities but instead used it for his personal and business expenses. The complaint further states that Zdanecis concealed his scheme by providing fake account statements to the clients which misrepresented their holdings and the disposition of their money. The two investors lost a total of $160,000.

The arrest today is the result of investigative efforts by special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota.

The defendant is due back in court for further proceedings on October 4, 2012, at 9:00 a.m.

The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.

Indictment Charges Delaware Man with $1.8 Million Commodities Fraud Scheme

WILMINGTON, DE—Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that an indictment was returned by a federal grand jury charging Kyong Ho Kim of Newark, Delaware, with seven counts of wire fraud (18 U.S.C. § 1343), three counts of mail fraud (18 U.S.C. § 1341), six counts of commodities fraud (7 U.S.C. §§ 6b, 13), and one count of engaging in monetary transactions in property derived from specified unlawful activity (money laundering; 18 U.S.C. § 1957).

According to the indictment, the defendant solicited and obtained over $1.8 million from other persons by representing that he was a successful foreign currency trader and that he would invest their money in foreign currency markets. It is alleged that the defendant sent investors false reports, indicating that their investments had grown through foreign currency trading; meanwhile, the defendant diverted certain funds he received from investors into his personal bank accounts. It is further alleged that the defendant spent the diverted funds on personal items, including a yacht.

If convicted of the pending charges, the defendant faces up to 20 years in prison on each count of wire fraud and mail fraud and up to 10 years in prison on each count of commodities fraud and money laundering, in addition to possible fines and restitution.

This case is the result of an investigation conducted by the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Lauren M. McEvoy, District of Delaware; and the Wilmington Resident Agency of the Federal Bureau of Investigation. For further information or to report possible additional criminal conduct, contact the Baltimore Division of the Federal Bureau of Investigation at (410) 265-8080.

The charges in the indictment are only allegations, and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.