Additional federal charges have been filed against a local Hmong man accused of making a promise that cost some thousands of dollars and, according to authorities, proved too good to be true.
Seng Xiong, 48, was indicted by a federal grand jury Wednesday for allegedly scheming Hmong elders out of more than $1.3 million by telling them they were investing in a new Hmong country recently recognized by the United Nations, according to information released by the U.S. attorney’s office.
The indictment charges Xiong with wire and mail fraud for the alleged operation. He had previously been charged by criminal complaint.
The local man, who appeared to have no permanent address, was arrested in late March at Los Angeles International Airport before boarding a plane to Thailand. The arrest came after authorities discovered more than $1 million in his bank account in New Brighton.
Xiong was extradited to Minnesota on April 18 to face the allegations.
His attorney, Allan Caplan, said Wednesday that he still hadn’t seen the evidence against his client and provided no additional comment.
Telling his victims he was working with the White House and the United Nations, Xiong reportedly directed elders across the country to deposit $3,000 to $5,000 into a bank account under his name.
In exchange, he said, they would be guaranteed land, housing, school, jobs and social services in a new Hmong homeland he said was being established somewhere in Southeast Asia, according to the U.S. Attorney.
He also promised a financial return on the investment.
If that price point was too steep, Xiong offered a $20-a-month option that came with fewer benefits but still ensured the investor a spot in the new country.
If they didn’t act fast, they could be denied access to the country in the future, the scheme alleged.
Investigators with the Minnesota Crimes Task Force and the St. Paul Police Department last year discovered $1.3 million in Xiong’s Wells Fargo bank account tied to the scheme.
The ruse led scores of Hmong elders from across the country to send money to the cause. Some have done so even after his arrest, according to St. Paul Police Sgt. Mike Ernster.
“There are still people out there who believe he will follow through with what he says he is going to do, which is build his own country,” Ernster said. “And that’s false. It’s fraud.”
Anyone who may be a victim of the alleged crime is asked to call their local police department or contact the Minnesota Financial Crimes Task Force by sending an email to mspectf@usss.dhs.gov.
Xiong’s next court appearance is scheduled for June 22.