SEC Halts Suspected $20 Million Pyramid Scheme Targeting Asian American Community

The Securities and Exchange Commissions says its uncovered a $20 million pyramid scheme targeting the Asian American community.

Prosecutors say the firms operate under the names CKB or CKB168 and promised investors risk free returns with little or known effort.

The $20 million authorities believe the companies fraudulently collected came from US investors alone, and does not include money from those they are suspected of also defrauding in Canada, Taiwan, Hong Kong, and other countries in Asia.

In the complaint, prosecutors say the companies have no source of revenue outside of what investors give them and nothing to sell.

A judge has granted a temporary restraining order against the companies and froze their assets.

You can read more information about the indictments on the SEC website.