Hwang was the founder and chairman of Pinupito, Inc., an Irvine investment company. Yi was the president and secretary of the company, and controlled its finances and bank accounts.
According to the indictment in the case, Hwang and Yi promised investors annual returns of up to 45 percent. They claimed that Pinupito generated income by buying smaller companies in Korea, growing them, and selling them for a large profit.
The indictment alleges that the two lied to investors. Hwang and Yi are accused of using the investors money to fund a luxury lifestyle, including luxury car leases, and personal expenses and to pay returns to existing investors.
They are set to be arraigned in Federal Court in Santa Ana on Monday.