Sung Moo “Sam” Cho, a former financial adviser at Citigroup and Ameriprise, has pleaded guilty to embezzling more than $3.5 million from a wealthy New Jersey client over two years, using forged signatures and fabricated account statements to fund a lifestyle of luxury vacations and jewellery, before being barred for life from the securities industry.
Sung Moo “Sam” Cho, 44, pleaded guilty in Brooklyn federal court on 7 July to fraud after embezzling more than $3.5 million from a longtime client over a scheme running between 2023 and 2025, according to the US Attorney’s Office for the Eastern District of New York. Cho, who worked as a financial adviser at both Ameriprise Financial and Citigroup during his career, has agreed to pay full restitution and faces a maximum sentence of 25 years in prison. His victim has been identified in court filings as a wealthy resident of Franklin Lakes, New Jersey.
How the Scheme Worked
According to court filings seen by the Daily Mail, Cho exploited his position as a trusted adviser by forging his client’s signature on authorisation forms and submitting fraudulent paperwork to transfer millions of dollars out of the victim’s investment accounts without permission. Prosecutors allege he bypassed internal compliance procedures at both firms in order to approve the large wire transfers undetected.
The stolen funds were allegedly routed through a Queens-based business controlled by an alleged co-conspirator, who kept a fee for helping move the money before sending the remainder to accounts controlled by Cho. Authorities say he then spent the proceeds on luxury vacations, high-end jewellery, credit card bills, student loans and other personal expenses.
Covering His Tracks
To keep the fraud hidden, prosecutors allege Cho created fake account statements that falsely showed his client’s investments remained intact and were even growing in value. He is also accused of removing the client’s contact information from Citi’s internal systems, preventing the victim from receiving legitimate account notifications that might have exposed the scheme sooner. The fraud eventually came to light after the client raised questions over discrepancies in their account balances, triggering an internal review and a subsequent federal investigation.
Fired From Citigroup
Court documents state Cho joined Citigroup in October 2025, having previously worked at Ameriprise Financial, Wells Fargo, JPMorgan Chase and Merrill Lynch earlier in his career. According to a Citi spokesperson, first reported by the New York Post, Cho was employed at the bank for only the final three months of 2025 before being dismissed in early 2026, after the firm discovered he had removed customer information from its systems, created counterfeit account statements, and failed to cooperate with its internal investigation.
Barred for Life From the Industry
Cho’s career on Wall Street effectively ended when the Financial Industry Regulatory Authority (FINRA) permanently barred him from the securities industry on 25 June 2026, after he refused to provide documents and information during its investigation into allegations that he misappropriated customer funds, forged signatures and falsified firm records. A FINRA BrokerCheck entry notes: “Without admitting or denying the findings, Cho consented to the sanction.” The regulator said its investigation examined whether Cho had engaged in the alleged misconduct while associated with two member firms.
Separate Civil Complaints
The criminal case runs alongside a number of separate investor complaints and arbitration claims against Cho. According to securities law firms White Securities Law and Investment Fraud Lawyers, former clients have alleged he recommended unsuitable investments, engaged in unauthorised trading, breached his fiduciary duties, and misrepresented investment strategies while working at both Ameriprise and Citigroup. The firms said these complaints are seeking to recover investment losses through FINRA arbitration. These civil allegations remain separate from the criminal case and have not been proven in court.
What Happens Next
Cho remains free on a $200,000 bond after surrendering his passport while he awaits sentencing, which is scheduled for 13 October before Judge Joan Azrack. The wire fraud charge against him carries a maximum sentence of 20 years in prison, while a separate investment adviser fraud charge carries a maximum of five years. Federal prosecutors are also seeking the forfeiture of assets tied to the fraud, including any luxury property, jewellery, cash or substitute assets, should the original stolen funds no longer be recoverable, alongside full restitution for the victim.
