A former Citigroup financial adviser has pleaded guilty to defrauding a wealthy client of more than $3.5 million, a scheme prosecutors say funded his luxury lifestyle. Sung Moo 'Sam' Cho, 44, admitted to wire fraud and investment adviser fraud in Brooklyn federal court on July 7, according to the U.S. Attorney's Office for the Eastern District of New York.
Cho exploited his position of trust by allegedly forging the client's signature on authorization forms and submitting fraudulent paperwork to transfer funds from the victim's investment accounts without permission between 2023 and 2025. The stolen money was reportedly funneled through a Queens business, where a kickback was taken before the remaining funds were sent to accounts controlled by Cho.
Prosecutors stated that Cho used the embezzled money for personal expenses, including luxury vacations, high-end jewelry, credit card bills, and student loans. To conceal his actions, he is accused of creating fake account statements that falsely showed the client's investments were intact and growing. He also allegedly removed the client's contact information from Citigroup's systems to prevent the victim from receiving legitimate account notifications.
Citigroup terminated Cho in April after uncovering allegations of removed customer information, counterfeit account statements, and a failure to cooperate with an internal investigation. The firm stated Cho had worked there for only the final three months of 2025 before his dismissal.
Prior to his employment at Citigroup, Cho worked as a financial adviser at Ameriprise Financial. He is also the subject of multiple investor complaints and arbitration claims. Law firms representing former clients have alleged that Cho recommended unsuitable investments, engaged in unauthorized trading, breached fiduciary duties, and misrepresented investment strategies during his tenure at both firms. These civil allegations are separate from the criminal case and have not been proven in court.
Cho's career in the securities industry effectively ended when the Financial Industry Regulatory Authority (FINRA) permanently barred him for refusing to cooperate with an investigation into allegations of misappropriating customer funds, forging signatures, and falsifying firm documents. He consented to the sanction without admitting or denying the findings.
Cho remains free on a $200,000 bond and has surrendered his passport while awaiting sentencing, which is scheduled for October 13 before Judge Joan Azrack. He faces a maximum sentence of 25 years in prison and has agreed to pay more than $3.5 million in restitution. Federal prosecutors are also seeking the forfeiture of assets tied to the fraud.