Regarding the mail fraud charge, the indictment alleges that Pang introduced her investors to an investment opportunity that she described as a government backed mortgage fund called "the Krupp Fund," falsely representing that the Fund was paying out very good rates of return on investment. Pang knew that the Krupp Fund no longer existed.
In an effort to conceal the scheme, Pang registered a fictitious business with the Missouri Secretary of State under the name of "Krupp dba Germaine M. Pang." She allegedly accepted and deposited money from investors intended for the Krupp Fund into her own personal bank accounts and used the money for her personal benefit and to pay for her personal expenses. In order to conceal her fraud, Pang created fraudulent annual reports which she mailed to investors to lull them into believing that their investments were safe and were growing. The indictment states that Pang diverted more than $1,000,000 of investors' money to her own benefit over the period of this fraudulent scheme.Regarding the bank fraud charge, the indictment alleges that Pang maintained personal bank accounts at Bank of America. Delta Economic Development Corp., a non-profit entity established by the local Delta chapter, operated a childcare center in East St. Louis, Illinois.
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