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Assets recovered by the KL receiver: In the KL Financial Group scandal, $213 million from investors was lost or stolen. No one has been indicted, and a receiver has so far managed to recover only $4.6 million By Alexandra Clough, Palm Beach Post Staff Writer (PalmBeachPost.com) (May 17, 2006)  KL Financial's Trading Room The Palm Beach Post article stated that "the bait" included "[a] $100,000 conference table; seven 50-inch, high-definition plasma TVs; and a $47,000-a-month office in the Esperante office towerin downtown West Palm Beach.... By the time hedge fund KL Financial Group came crashing down last year amid a swirl of federal scrutiny, $213 million in investor money had been either lost or stolen. It could be the largest investor fraud in Palm Beach County history." "The U.S. Securities and Exchange Commission last year sued KL principals Won Sok Lee and brothers John and Yung Bae Kim, charging them with securities fraud. The civil complaint accuses KL and its principals of misrepresenting the fund's performance and possibly misappropriating money. A federal court froze the defendants' assets and appointed a receiver...."
 Board Room The article also quotes attorney Gary Klein, who represents a group of 60 KL investors who claim to have collectively lost about $90 million in dealing with KL Financial. The article further states that: "KL's 17th floor offices in Esperante once were an opulent stopping point for many of Palm Beach's wealthiest residents. They were eager to share in the high-risk, high-return funds that KL touted. But euphoria turned to horror in February 2005 when investors were told their money had evaporated. Some of Palm Beach's best-known businesspeople and socialites saw their fortunes disappear in the scandal. Embarrassed investors have been reluctant to go public, but published reports state that pro golfer Ray Floyd and Jerome Fisher, co-founder of the Nine West shoe store chain, were among the victims.  KL Financial's Reception But in the year that has followed, trying to recover the cash has been a painstaking task. Lewis is not hopeful most of the money will be found. Lee and Yung Kim fled the country soon after the fund's collapse last year and remain fugitives...." "There have been some successes. The SEC obtained a permanent injunction against John Kim, barring him from violating securities laws in the future. John Kim now is cooperating with investigators. He also is helping turn over assets obtained with KL money, according to David Rosemberg, an attorney for the receiver." Find the article in its entirety at:
"A Closer Look at KL Financial" (Palm Beach Post, May 17, 2006)
http://www.palmbeachpost.com/business/content/business/epaper/2006/05/17/a1d_kl_0517.html Palm Beach Post's photos associated with this article are avaliable at:
http://www.palmbeachpost.com/news/content/business/slideshows/klfinancial/index.html
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