A Massachusetts man has been charged with conning almost $8 million from his victims who thought that they were buying stocks of major IT companies at super-cheap prices.
Randy M. Cho, who previously lived in Chicago, had told his victims that his special ties with Goldman Sachs allowed him to get stocks of companies like Google and Time Warner at super-cheap rates.
The law enforcement officials have charged Cho with one count of wire fraud and one count of filing a false federal income tax return.
According to a statement given by U.S. Attorney Patrick Fitzgerald, Cho had used a significant chunk of the money he conned out of his victims, who are numbered around 50, for his own personal benefit and the remaining amount was used to make Ponzi-style payments to previous investors.
In one instance, Cho conned one investor out of $20,000 by making him believe that he could purchase Google shares for $1 each, despite that fact that at that time, the share price was $425 per share.