The judge set his bail at $10,000, considering his cooperation with the investigation and agreement to stay at his family’s home in Georgia.
John Kim, 61, allegedly operated Club Mega Planet (CMP), an online investment company that targeted ethnic Korean seniors, either directly or indirectly. He was arrested in early June after over a year of investigation and has been held in Gwinnett County Jail.
He primarily focused on the Atlanta Korean community, as well as Maryland, New York, and other locations, using pyramid and Ponzi schemes—a fraudulent and unsustainable investment pitch that promises unrealistic returns from imaginary investments—to lure people in.
Many self-proclaimed victims of John Kim’s pyramid scheme scam stated that they were approached by associates of the pyramid scheme with promises of high returns and religious exploitation.
In early June 2022, Ms. Lee, who resides in Los Angeles, was approached by an acquaintance about an investment opportunity. After meeting at a coffee shop, John Kim informed her about an online investment company called Club Mega Planet (CMP) that claimed to have numerous members worldwide.
“I was skeptical because they didn’t disclose their job titles or the CEO’s identity, but my acquaintances invested, and even an elderly man at the coffee shop that day offered to invest $200,000. Eventually, I decided to invest because they promised 10,000 points on their website, but two days later, I didn’t hear anything back from them,” said Lee.
Virginia resident Mr. Kim also attended a CMP investment presentation at the request of an acquaintance. He claims to have lost approximately $75,000 and stated, “I not only lost money but also damaged my relationship with my children due to rumors in my neighborhood.” Kim blamed local “reps” or “middle managers” who held relatively high positions in the pyramid scheme.
Maryland resident Mr. Park also encountered John Kim through a friend’s referral. He claimed to have introduced over 1,000 people to the investments and had 30,000 “accounts” under his name (as one person could create multiple accounts). Park, who ultimately lost $110,000, declared, “In Maryland alone, the losses exceed $1 million, with most of the victims being seniors over 65 years old.”
John Kim promised investors high returns in his pyramid scheme by distributing points or profits to establish credibility. Initially, he guaranteed a 30% monthly return on investments, which he fulfilled. However, he later changed his stance, stating, “I’ll only pay you if you bring in more investors,” to sustain the pyramid scheme.
Victims claim that Kim was persuasive and exploited their trust. “He spoke about God frequently,” says Lee from Los Angeles. “He would pray before meals and discuss his desire to help the poor and engage in missionary work.”
The family of the Georgia victim also alleged that John Kim recruited investors under the guise of missionary work.
BY JIAH YOON [support@koreadaily.com]
