Charles Wang and Francis Yuen, owners of the defunct eAdGear, pleaded guilty to structuring fraud on May 27, 2015. The company was shut down by the SEC the previous September.
eAdGear was the entity behind the 2013 Ponzi scheme GoFunRewards. Wang and Yuen initially faced conspiracy charges. A grand jury indicted them on one count of conspiracy.
The case docket shows that a January 21, 2015, status conference resulted in little progress. Wang filed a financial affidavit. The hearing was postponed multiple times through February and March. An attorney for the Department of Justice entered the case in February. An order on March 24 set a new date for a Change of Plea hearing in May.
On May 26, 2015, the FBI filed a Superseding Information. This added two fraud charges against Yuen and Wang: conspiracy to commit structuring and structuring transactions to evade reporting requirements. The DOJ sought a maximum 10-year prison sentence for each charge, a fine exceeding $500,000, and forfeiture of all property traceable to the offense. They also sought over $700,000 that was illegally structured.
Both men entered guilty pleas to two counts of structuring fraud the following day. A sentencing hearing was scheduled for October 1. Motions for forfeiture of property were filed against Yuen and Wang on July 17 as part of their plea agreements. The DOJ requested a personal money judgment of $731,405.33 against each defendant. They also sought permission to discover and seize assets to satisfy the forfeiture. The specific properties targeted for seizure have not yet been identified.
A judge must approve the forfeiture motions. However, their inclusion in the plea agreements makes approval highly probable. The pair then faced their sentencing hearing in October, expected to conclude the eAdGear and GoFunRewards matter.
In an update on November 13, 2015, both Francis Yuen and Charles Wang received 46-month prison sentences.