Danielle Sassoon, the United States Attorney for the Southern District of New York, and James E. Dennehy, Assistant Director in Charge of the FBI's New York Field Office, have announced the arrest of Kevin Feng Gao. The unsealed indictment charges Gao with bank fraud in connection with a scheme to misappropriate $30 million intended for investment in Manhattan real estate. Gao is set to appear before U.S. Magistrate Judge Stewart D. Aaron.
U.S. Attorney Danielle Sassoon stated: “As alleged, Kevin Gao orchestrated a complex scheme to create a fraudulent, unauthorized bank account and use the account to steal $30 million from a real estate investor. Bank fraud schemes undermine the integrity of our financial system by corrupting it for criminal purposes, and I commend the FBI and our dedicated team of prosecutors for their outstanding work in uncovering this massive fraud.”
FBI Assistant Director James E. Dennehy commented: “Kevin Gao allegedly opened an unauthorized corporate bank account to intercept and steal a $30 million investment. This alleged establishment of an illicit bank account wrongfully diverted a significant sum from its intended use. The FBI remains dedicated to apprehending all individuals who implement deceitful measures to steal what is not owed to them.”
The indictment alleges that Gao executed a scheme involving an unauthorized bank account under the name of a company managing a Manhattan real estate project. Although involved in a joint venture for the project, Gao was not authorized by the management company to open such an account.
In applying for this fraudulent account at an FDIC-insured bank, Gao allegedly made false claims about having permission from the management company and provided falsified documents when asked for proof.
Following this setup, an investment firm transferred $30 million into this fraudulent account instead of sending it to legitimate accounts controlled by the management company. It is alleged that Gao then distributed these funds across various accounts under his control and those of his co-conspirators.
Gao faces one count of bank fraud, which carries up to 30 years in prison if convicted. However, any sentence will be determined by a judge.
The case falls under the Office’s Illicit Finance and Money Laundering Unit with Assistant U.S. Attorneys Christopher Brumwell and Maggie Lynaugh leading prosecution efforts.
It is important to note that charges are accusations at this stage; Kevin Feng Gao is presumed innocent until proven guilty.
