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, announced the arrest of Kevin Feng Gao. The indictment charges Gao with bank fraud in a scheme to steal $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." She commended the FBI and prosecutors for their work in uncovering this 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."
The indictment alleges that Gao executed a fraudulent scheme by opening an unauthorized bank account under the name of a company managing a Manhattan real estate project. Although he was an executive at another company involved in the joint venture, he had no authorization from the management company to open this account.
Gao allegedly made false representations to employees of an FDIC-insured bank when opening this account and provided fraudulent documents instead of legitimate ones. Subsequently, an investment company transferred $30 million into this fraudulent account rather than into an authorized one held by the management company. The funds were then dispersed by Gao to various accounts controlled by him and his associates.
Gao, 37, from Queens, New York, faces one count of bank fraud with a maximum sentence of 30 years in prison if convicted. The case is being managed by the Illicit Finance and Money Laundering Unit with Assistant U.S. Attorneys Christopher Brumwell and Maggie Lynaugh leading the prosecution.
It is important to note that these charges are accusations; Gao is presumed innocent until proven guilty.