Seng Xiong charged with stealing more than $1.3 million in affinity fraud scheme
United States Attorney Andrew M. Luger today announced an indictment charging SENG XIONG, 48, with wire and mail fraud for operating an affinity scheme targeting Hmong elders. XIONG was arrested on Thursday, March 24, 2016, at Los Angeles International Airport, prior to boarding a flight bound for Thailand.
According to the Indictment, XIONG was conducting a fraud scheme through his organization “Hmong Tebchaws,” in which Hmong elders were being directed to deposit $3,000 to $5,000 into a bank account held in the name of SENG XIONG. In exchange for the payments, victims were allegedly promised 10 acres of land, a house, and many other benefits in a future country that would be established as a Hmong homeland somewhere in Southeast Asia.
According to the Indictment, XIONG claimed to be working with the White House and United Nations to establish the new Hmong country. He also claimed that a piece of land had already been set aside for the Hmong people somewhere in Southeast Asia.
According to the Indictment, XIONG offered several “investment” options which purported to represent varying levels of return that “founders” would be able to receive on their investment in the new country. Investments between $3,000 and $5,000 would guarantee the “investor” and his or her future generations, land, a house, free healthcare, free education, and government financial assistance for people over 65 years of age, as well as a return on that investment equal to a percentage of the income generated by the new Hmong country. Those who could not afford the $3,000 - $5,000 “founders” option could pay $20 per month, or $240 per year, which would secure their spot in the new Hmong country along with some of the benefits, although those who “enrolled” at that level would not receive a return on their investment.
If you or someone you know could be a victim, please contact the Minnesota Financial Crimes Task Force by sending an email to firstname.lastname@example.org
This case is the result of an investigation conducted by the Minnesota Financial Crimes Task Force, Saint Paul Police Department, United States Secret Service, Federal Bureau of Investigation and Appleton Police Department.
Special assistance was provided by the United States Attorney’s Offices for the Eastern District of California.
This case is being prosecuted by Assistant United States Attorney Amber M. Brennan.
SENG XIONG, 48
• Wire fraud, 1 count
• Mail fraud, 1 count