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Cftc Secures Million — A landmark ForexnPower forex scam case has reached its conclusion, with a U.S. federal court entering a default judgment of over $2.4 million against Safety Capital Management Inc. and GNS Capital Inc.—both operating under the ForexnPower brand in Queens, New York. The Commodity Futures Trading Commission (CFTC) announced the ruling on March 13, 2026, marking a significant victory in the fight against retail forex fraud targeting vulnerable immigrant communities.
What Was ForexnPower and How Did the Scam Work?
ForexnPower was the trading name used by two Queens-based companies: Safety Capital Management Inc. and GNS Capital Inc. Together, they operated as unlicensed commodity pool operators and commodity trading advisors—fraudulently managing client funds under the pretense of professional forex trading expertise.
The scheme specifically targeted Korean-language speakers in Queens, New York—a tight-knit immigrant community with limited access to English-language financial resources. According to court findings, the companies “deliberately exploited their access to a vulnerable community — Korean-language speakers in Queens who were totally reliant on defendants to protect and manage their investments.”
Key Violations Committed by ForexnPower Operators
- Retail Forex Fraud: The companies accepted client funds for forex trading without proper registration or oversight.
- Fraudulent Commodity Pool Operation: Funds were pooled and mismanaged, violating CFTC regulations.
- Fraudulent Trading Advisory Services: Clients were given false or misleading trading advice.
- Regulatory Violations: Both companies breached multiple provisions of the Commodity Exchange Act (CEA).
- Community Targeting: Operators deliberately targeted non-English speakers who lacked the tools to verify legitimacy.
The Court’s Judgment: Breaking Down the $2.4 Million Penalty
The U.S. District Court for the Eastern District of New York adopted a magistrate judge’s detailed report and entered the following orders:
Restitution Orders
The court ordered Safety Capital and GNS to pay $835,058 in restitution, jointly and severally with individual defendants:
- John H. Won – Found guilty of securities fraud and conspiracies to commit wire fraud, securities fraud, and money laundering.
- Tae Hung Kang (aka Kevin Kang) – Pleaded guilty to securities fraud conspiracy in a parallel criminal case.
Civil Monetary Penalties
- Safety Capital Management: $1,441,143 (triple the monetary gain from offenses)
- GNS Capital Inc.: $186,102 (triple the monetary gain from offenses)
- Total ordered: Over $2.4 million in restitution and penalties combined
Both companies are now permanently enjoined from any further violations of the Commodity Exchange Act and CFTC regulations.
Timeline of the ForexnPower Case
This case has a long legal history worth understanding:
- September 25, 2015: CFTC files original complaint against Safety Capital, GNS, Won, and Kang
- April 11, 2018: Parallel criminal case filed (United States v. Kang, et al.)
- August 31, 2022: Consent order resolves all claims against Kang
- September 19, 2024: Summary judgment order resolves all claims against Won
- March 13, 2026: Default judgment entered against Safety Capital and GNS, closing the case
The decade-long legal process underscores how complex forex fraud cases can be—and why victims often wait years for justice. Critically, the CFTC warns that restitution orders may not result in victims recovering money lost because defendants may not have sufficient assets.
Red Flags: How to Spot a Forex Scam Like ForexnPower
The ForexnPower case contains textbook warning signs that every investor should recognize. Before trusting any forex broker or trading advisor with your money, watch for these red flags:
Unregistered Operators
ForexnPower operated without proper CFTC or NFA registration. Always check if your broker is regulated through the NFA’s BASIC database or the CFTC’s website before depositing any funds.
Community-Targeted Schemes
Scammers frequently target immigrant or non-English-speaking communities where victims may not know how to verify credentials. Be especially cautious of brokers who rely heavily on word-of-mouth within close-knit ethnic communities.
Guaranteed Returns
Legitimate forex trading carries substantial risk. Any operator promising guaranteed profits or consistent high returns should be treated with extreme suspicion.
Lack of Transparency
Legitimate brokers provide clear account statements, trade histories, and regulatory documentation. If your advisor is vague about where your money is being traded, that’s a serious warning sign.
Pressure Tactics
High-pressure sales techniques, urgency, and requests to keep your investment “secret” are hallmarks of fraud operations.
What Victims Can Do If They’ve Been Scammed
If you believe you’ve been victimized by a forex scam similar to ForexnPower, time matters. Here’s what to do:
- Document everything: Save all emails, account statements, contracts, and communication records.
- Report to the CFTC: File a complaint at cftc.gov/complaint or call 1-866-366-2382.
- Report to the NFA: The National Futures Association handles complaints at nfa.futures.org.
- Contact the FBI: For criminal fraud, submit a tip to the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov.
- Consult a fraud attorney: Many attorneys work on contingency for investment fraud cases.
- Get a free broker assessment: Report a forex scam to our team for a confidential review.
Why Forex Scams Keep Targeting Immigrant Communities
The ForexnPower case is unfortunately not unique. Immigrant and non-English-speaking communities are repeatedly targeted by forex scammers for several structural reasons:
- Language barriers make it harder to research broker credentials online
- Trust in community networks is exploited through affinity fraud
- Limited financial literacy resources in native languages
- Reluctance to report crimes due to immigration status concerns or distrust of authorities
- Cultural respect for “successful” community members who present as financial experts
Regulators like the CFTC have increasingly focused enforcement resources on these “affinity fraud” schemes, but prevention remains the most effective tool. Community education and accessible information in multiple languages are critical.
How to Verify a Forex Broker’s Legitimacy
Before entrusting any broker with your trading capital, conduct thorough due diligence:
- Check NFA BASIC: nfa.futures.org/basicnet
- Search CFTC Actions: cftc.gov enforcement actions
- Verify SEC registration if applicable
- Read independent broker reviews at ScamBrokersReview.com
- Check for negative reviews on Trustpilot, Reddit’s r/Forex, and ForexPeaceArmy
Frequently Asked Questions (FAQ)
What is ForexnPower?
ForexnPower was the trading name used by Safety Capital Management Inc. and GNS Capital Inc., two Queens, New York companies that ran a retail forex scam targeting Korean-speaking investors. Both companies were found guilty of retail forex fraud and related regulatory violations by a U.S. federal court.
How much did the CFTC recover in the ForexnPower case?
The court ordered over $2.4 million in combined restitution and civil monetary penalties. However, the CFTC cautions that victims may not recover their full losses if the defendants lack sufficient assets.
Who were the individuals behind ForexnPower?
The key individuals were John H. Won and Tae Hung Kang (aka Kevin Kang). Won was found guilty by a jury of securities fraud and related conspiracies. Kang pleaded guilty to securities fraud conspiracy.
How can I check if a forex broker is a scam?
Always verify broker registration with the CFTC and NFA before investing. You can also read our broker reviews for independent assessments of forex brokers operating in the US and globally.
What should I do if I’ve lost money to a forex scam?
Report the fraud immediately to the CFTC, NFA, and FBI’s IC3. Document all records and consult a fraud attorney. You can also contact our team to report a forex scam and get guidance on your options.
Report scams at SEC Investor.gov.
