SENG XIONG, 48, resident of Maplewood, Minnesota, was charged with wire and mail fraud for operating an affinity scheme targeting Hmong elders. XIONG was arrested on Thursday, March 24, 2016, at Los Angeles International Airport, prior to boarding a flight bound for Thailand.
The indictment was announced today by United States Attorney Andrew M. Luger.
According to the Indictment, XIONG was conducting a fraud scheme through his organization “Hmong Tebchaws,” in which Hmong elders were being directed to deposit $3,000 to $5,000 into a bank account held in the name of SENG XIONG. In exchange for the payments, victims were allegedly promised 10 acres of land, a house, and many other benefits in a future country that would be established as a Hmong homeland somewhere in Southeast Asia.
According to the Indictment, XIONG claimed to be working with the White House and United Nations to establish the new Hmong country. He also claimed that a piece of land had already been set aside for the Hmong people somewhere in Southeast Asia.
According to the Indictment, XIONG offered several “investment” options which purported to represent varying levels of return that “founders” would be able to receive on their investment in the new country. Investments between $3,000 and $5,000 would guarantee the “investor” and his or her future generations, land, a house, free healthcare, free education, and government financial assistance for people over 65 years of age, as well as a return on that investment equal to a percentage of the income generated by the new Hmong country. Those who could not afford the $3,000 – $5,000 “founders” option could pay $20 per month, or $240 per year, which would secure their spot in the new Hmong country along with some of the benefits, although those who “enrolled” at that level would not receive a return on their investment.
