Paik
Paik v. Lee (In re Lee)
Opinion
Lead Opinion
Hammond, J.
MEMORANDUM DECISION
A trial was held July 21 and 22, 2015 in the above-captioned adversary case. Paik requests the court deny the Lees’ chapter 7 discharge and deem the Lees’ debts to Paik nondischargeable. John Mejia appeared on behalf of Paik and David Smyth appeared on behalf of Kenneth Keun Sung Lee and Hyun Joo Lee (referred to herein as “Lee” and “Hyun Lee” respectively).
This court has jurisdiction over the adversary proceeding pursuant to 28 U.S.C. § 1334 and General Order No. 24 of the United States District Court for the Northern District of California. This is a core proceeding pursuant to 28 U.S.C. § 167 (b)(2)(I) and (J).
Background
Paik, among many others, is the victim of a Ponzi scheme carried out by SNC Investments, Inc. and SNC Asset Management, Inc. (together, “SNC”). SNC promised high returns on investments in international over-the-counter foreign currency markets (“Forex”), but in reality it was a Ponzi scheme that converted investors’ funds for other purposes until it closed operations in 2008. Paik invested a total of $615,777.47 between April 2005 and April 2006.
Paik met Lee in the early 1990’s. Lee was a customer at Paik’s sushi restaurant and would…