ForexnPower Scam Exposed: CFTC Secures $2.4 Million Judgment Against Safety Capital Management and GNS Capital

The ForexnPower scam is one of the most egregious cases of retail forex fraud in recent U.S. history — a scheme that deliberately targeted vulnerable Korean-language speakers in Queens, New York, promising guaranteed profits while secretly draining their savings. On March 13, 2026, justice was finally fully delivered when a federal court ordered Safety Capital Management Inc. and GNS Capital Inc., both doing business as ForexnPower, to pay over $2.4 million in restitution and civil monetary penalties. Here is everything you need to know about this case and how to protect yourself from similar forex scams.

What Is ForexnPower? The Companies Behind the Scam

ForexnPower was the trade name used by two New York-based companies:

Safety Capital Management Inc. — a commodity pool operator and commodity trading advisor based in Queens, New York
GNS Capital Inc. — co-operating under the same ForexnPower brand and also based in Queens, New York

The key individuals behind the scam were:

John H. Won — controlling person of GNS Capital, later convicted by jury of securities fraud and conspiracies to commit wire fraud, securities fraud, and money laundering
Sungmi Kang — controlling person of both Safety Capital and GNS Capital
Tae Hung Kang (a/k/a Kevin Kang) — officer and agent of both companies, who later pleaded guilty to securities fraud conspiracy in the parallel criminal case

How the ForexnPower Scam Worked

From at least October 2010 through December 2013, Safety Capital and GNS Capital operated a sophisticated forex fraud scheme that fraudulently solicited and accepted over $1.5 million from more than 90 retail customers. The defendants promised customers they could participate in a forex commodity pool or open managed forex trading accounts — all built on a foundation of lies.

The False Promises That Lured Victims

The CFTC’s complaint details the specific false representations ForexnPower made to unsuspecting customers, including:

ForexnPower had a “secret trading method” that guaranteed a monthly profit rate of 10%
Investors “will not lose their money at all, not even $1”
Customers could make $100,000 with only a $500 investment
The companies could consistently generate risk-free returns in a volatile forex market

In reality, forex pool participants and managed trading accounts had never earned such profits. Customers were losing money — not making it.

Targeting a Vulnerable Community

What makes the ForexnPower scam especially heinous is how deliberately it targeted a specific, vulnerable group. The defendants advertised through:

Korean-language newspapers
Their ForexnPower website
Written solicitation materials distributed in the community
In-person seminars in Queens, New York

The court specifically noted that the companies “deliberately exploited their access to a vulnerable community — Korean-language speakers in Queens who were totally reliant on [the] defendants to protect and manage their investments.” This is a textbook example of affinity fraud, where scammers prey on trust within a specific cultural or ethnic community.

Regulatory Violations on Top of Fraud

Beyond the outright fraud, ForexnPower committed multiple regulatory violations:

Commingling commodity pool funds with non-pool property
Failing to operate the commodity pool as a separate legal entity
Receiving pool participants’ funds in company names rather than in the pool’s name
Failing to register Safety Capital and GNS as Commodity Pool Operators (CPOs) and Commodity Trading Advisors (CTAs) as required by law
Failing to produce documents requested by CFTC staff

The CFTC Enforcement Action: A Decade-Long Battle for Justice

The U.S. Commodity Futures Trading Commission (CFTC) filed its initial enforcement complaint on September 25, 2015 in the U.S. District Court for the Eastern District of New York (See CFTC Press Release No. 7245-15). The case took years to fully resolve:

August 31, 2022: A consent order resolved all claims against Tae Hung Kang (Kevin Kang)
September 19, 2024: A summary judgment order resolved all claims against John Won
March 13, 2026: A final default judgment against Safety Capital Management and GNS Capital resolved all remaining claims

The Final Judgment: $2.4+ Million in Penalties

The U.S. District Court for the Eastern District of New York issued the following financial penalties in its default judgment:

$835,058 in restitution — owed jointly and severally by Safety Capital and GNS Capital (along with defendants Won and Kang)
$1,441,143 civil monetary penalty against Safety Capital Management (triple the monetary gain)
$186,102 civil monetary penalty against GNS Capital (triple the monetary gain)
Permanent injunctions against both companies from further violations of the Commodity Exchange Act

Total judgment: Over $2.46 million.

Criminal Convictions

Parallel to the CFTC civil case, the U.S. Department of Justice pursued criminal charges in United States v. Kang, et al. (No. 18-cr-184, E.D.N.Y., April 11, 2018):

Tae Hung Kang (Kevin Kang) pleaded guilty to securities fraud conspiracy
John H. Won was found guilty by jury of securities fraud and conspiracies to commit wire fraud, securities fraud, and money laundering

Warning Signs: How to Spot a Forex Scam Like ForexnPower

The ForexnPower scam used classic red flags that every investor should recognize. If a broker or trading company tells you any of the following, walk away immediately:

🚩 Guaranteed monthly profits of 10% or more — no legitimate investment guarantees returns
🚩 “You will never lose money” — forex trading always carries risk
🚩 Secret or proprietary trading methods that supposedly beat the market every time
🚩 Pressure to invest quickly or limited-time offers
🚩 Unregistered companies — always check CFTC and NFA registration
🚩 Targeting specific communities via cultural or language-specific advertising
🚩 Seminars promising wealth with little to no investment
🚩 Commingled funds — your money should be held in a segregated account

How to Verify a Forex Broker Before Investing

Before entrusting any company with your money for forex trading, take these critical steps:

Check CFTC registration at cftc.gov — all legitimate forex pool operators and CTAs must be registered
Verify NFA membership at nfa.futures.org — search the Background Affiliation Status Information Center (BASIC)
Read independent broker reviews — sites like ScamBrokersReview help identify fraudulent operations
Never invest money you can’t afford to lose — even with legitimate brokers, forex trading carries substantial risk
Be especially cautious if a company is advertising in your native language with extraordinary promises

Looking for a safe, regulated broker? Check our guide to verified broker reviews to find trustworthy options, and see our full list of exposed broker scams to know which companies to avoid.

What Victims of Forex Fraud Should Do

If you or someone you know was victimized by ForexnPower or a similar forex scam, here are your options:

Report to the CFTC: Call the toll-free hotline at 866-FON-CFTC (866-366-2382) or file a tip at cftc.gov
Contact your state securities regulator: Find your state regulator at nasaa.org
Report to the FBI: File a complaint at ic3.gov (Internet Crime Complaint Center)
Consult a securities fraud attorney: You may be entitled to recover losses through civil litigation
Warn others: Share your experience on review sites and with community members

Important Note: The CFTC cautions that even when restitution orders are issued, victims may not recover funds because defendants may not have sufficient assets to pay.

Frequently Asked Questions (FAQ)

What is ForexnPower?

ForexnPower was the trade name used by Safety Capital Management Inc. and GNS Capital Inc., two New York companies that operated a retail forex fraud scheme targeting Korean-language speakers in Queens, NY from 2010 to 2013.

Was ForexnPower shut down?

Yes. The CFTC filed an enforcement action in 2015, and the companies are now permanently enjoined from operating. Key individuals faced both civil penalties and criminal convictions.

How much did the ForexnPower scam cost victims?

ForexnPower fraudulently solicited over $1.5 million from more than 90 victims and misappropriated over $622,000 of customer funds.

What happened to the ForexnPower founders?

Tae Hung Kang (Kevin Kang) pleaded guilty to securities fraud conspiracy. John Won was found guilty by jury of securities fraud and conspiracies to commit wire fraud, securities fraud, and money laundering. Both companies received over $2.4 million in civil monetary penalties and restitution orders.

How can I check if a forex broker is legitimate?

Check the CFTC’s registration database at cftc.gov and the NFA’s BASIC system at nfa.futures.org. Any legitimate U.S. forex broker must be registered. You can also read independent reviews at ScamBrokersReview.com before investing.

What are common signs of a forex scam?

Common red flags include guaranteed returns, “no-risk” promises, secret trading methods, pressure to invest quickly, unregistered companies, and targeting specific cultural communities with high-pressure seminars.

Conclusion: The ForexnPower Case Is a Warning for All Investors

The ForexnPower scam is a textbook case of how fraudsters exploit trust, cultural ties, and the allure of quick profits to steal from vulnerable communities. It took over a decade for the U.S. justice system to fully hold Safety Capital Management and GNS Capital accountable — and victims may still never recover their full losses despite the $2.4 million judgment.

The lesson is clear: no legitimate forex broker or trading company can guarantee profits, eliminate risk, or deliver 10% monthly returns. If you encounter these promises, treat them as certain scam indicators.

Stay informed, verify credentials, and always check our forex scam database before trusting anyone with your money. If you’ve encountered a suspicious broker, contact us and we’ll investigate.