Newport Beach Attorney Accused of Stealing from Clients

An Orange County attorney was indicted today by a federal grand jury for allegedly taking several million dollars in investment capital from clients and using the funds for personal expenses and luxury items.

Stephen Young Kang, 46, of Newport Beach, was named in a 25-count indictment charging him with 20 counts of wire fraud and five counts of money laundering, according to the U.S. Attorney’s Office. Kang was arrested by special agents with the FBI and Internal Revenue Service on Aug. 10 at Los Angeles International Airport as he attempted to board a flight to Seoul, Korea. He is currently free on a $750,000 secured bond.

Kang could not be reached for comment late Tuesday evening.

The indictment alleges Kang defrauded a Gardena-based food distribution company, Ottogi America Inc., whose representatives hired the attorney to help the firm purchase additional properties near its distribution center.

Between October 2012 and March 2014, Ottogi wire-transferred about $3.7 million to a trust account in Houston, Texas, to be used for the purchase of the properties, according to prosecutors.

But instead of using the money to invest in properties, Kang allegedly transferred the vast majority of the funds to other accounts that he controlled, and then used a substantial portion of Ottogi’s money to pay for personal expenses and business ventures, as well as to make partial payment to other victims. If convicted, Kang would face up to 20 years in federal prison for each of the wire fraud charges and up to 10 years in prison for each of the money laundering offenses. He is expected to be arraigned on Sept. 8.

Based on the evidence in this case, investigators believe Kang may have victimized others in locations where he practiced law or resided, including California, Texas, and Seoul, according to the U.S. Attorney’s Office.

Anyone who believes they may have been victimized by Kang should contact the FBI’s Los Angeles Field Office at (310) 477-6565.

City News Service