Feds allege former CU CEO moved nearly $700,000 to avoid government seizure
Lawyer for Kam Wong says this new allegation is false.
Federal prosecutors alleged former Municipal Credit Union CEO Kam Wong, who is awaiting sentencing for stealing nearly $10 million, allegedly “dissipated assets” of nearly $700,000 to avoid the government’s seizure of those funds.
Wong’s attorney, however, said Friday this allegation is false.
According to court documents filed by federal investigators last week, Wong transferred funds from two Citibank accounts to two TD Bank accounts under his wife’s name after a criminal complaint and his arrest in May. Before the complaint was filed and before he was arrested, the Citibank accounts were jointly held by Wong and his wife, making the TD Bank accounts subject to criminal forfeiture, according to court documents. A criminal forfeiture allows the federal government to seize the assets of any person involved in criminal activity.
“His bank account he shared with his wife was closed by the bank due to his arrest and he simply opened up a new account in his wife’s name in order to prevent another closure of the account,” Jeffrey Lichtman said, a New York lawyer who represents Wong.
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