Man accused of fraud scheme that promised Hmong homeland

Updated: 9:48 a.m. | Posted: 6:06 a.m.

A man promising a brighter future for Hmong elders and future generations with a prosperous homeland in Southeast Asia faces federal fraud charges.

Minnesota's U.S. Attorney Andy Luger filed charges against Seng Xiong, 48, for allegedly operating an online scheme that helped him collect over $1.3 million. According to the criminal complaint, Xiong ran the scam for a year until he imposed a deadline to close the investment period last September.

The complaint said Xiong used a website, online videos and conference calls to recruit "founders" of the land he claimed had support from the United States and other Asian countries.

Prosecutors allege Xiong had "investors" pay between $3,000 to $5,000 to help build a territory for Hmong people. He told them it would be built in accordance with international laws and that countries like China, Japan, Laos, Cambodia and Vietnam have "agreed to acknowledge the Hmong people and have saved a piece of land," according to the complaint.

The complaint also said Xiong promised investors and future generations 10 acres of land, a five-bedroom house, free health care, free education and financial assistance for seniors over 65.

Xiong told investors "Hmong people should prepare themselves for the new world," but Xiong couldn't say where the land was when he announced he secured it in an online video.

When police found Xiong at a St. Paul hotel last November, they found a list that identifies St. Paul police officers investigating him, according to the criminal complaint. The list specifically identifies Hmong officers and highlights one who's been assisting in the investigation.

Xiong was arrested at Los Angeles International Airport on March 24 before boarding a flight to Thailand.