FBI arrests man for bilking neighbor
SEATTLE – Federal agents have arrested the former owner of a waterfront mansion in Kirkland on fraud and extortion charges, nearly a year after a report about the man’s activities prompted an FBI investigation.
Sung “Lawrence” Hong was arrested without incident in suburban Mill Creek on Friday, FBI spokeswoman Robbie Burroughs said.
Last February, using bank, real estate and court records, the Associated Press reported that Hong helped pay for his lifestyle – including luxury cars, a 32-foot boat and a multimillion-dollar home on Lake Washington – by bilking $800,000 from his retired next-door neighbor. As Hong was taking Wayne Seminoff’s money, members of a Bellevue church were fighting in court to get back $340,000 they had given to Hong, believing they were investing it.
Hong’s home was foreclosed on in December. He was arrested as he moved out on Friday, Seminoff said. Real estate records showed that Hong bought the 4,400-square-foot home for $3.2 million in 2004.
Seminoff’s involvement with Hong began after he moved into an apartment next door in 2005. Seminoff said Hong, then 33, introduced himself as an investor in stocks, bonds and futures. As they became friends, Hong suggested they make an investment together.
Seminoff agreed and tried to protect his investment by writing out a contract. Hong signed the agreement, and Seminoff turned over $50,000.
Over several months, Hong spun a series of stories explaining why he needed more money. Seminoff sold a house in Redmond and invested $250,000 more but soon was out of cash. He asked Hong for money from the account for living expenses.
Hong refused and began to threaten Seminoff, warning that he had connections to a powerful international mafia that would kill them – and Seminoff’s daughter – if they tried to get their money back. Hong demanded another $500,000.
Seminoff eventually sued Hong in U.S. District Court in Seattle. A judge froze Hong’s bank account, and eventually Hong agreed to give Seminoff the nearly $300,000 that was left. Hong also turned over two personal watercraft, but Seminoff doesn’t expect to get much more of his money back.