Investor Kay Yang faces April trial on state charges while IRS ...

Investor and developer Kay Yang has an April trial date set for criminal slander of title charges tied to her then-Mequon home.

Milwaukee-area investor and developer Kay Yang remains under federal investigation for alleged money laundering and wire fraud while awaiting trial on state felony charges for filing false documents.

Yang also has yet to comply with a federal judge's 2023 order to repay $4.06 million to investors, and pay the same amount as a fine.

That civil order was issued after Yang used investment funds to finance her lifestyle — including casino gambling, luxury cars, and trips to Hawaii, Thailand, Cancun and Las Vegas, according to court documents.

Here's what to know:

State criminal charges tied to false liens

Yang, 43, was charged in January with four counts of criminal slander of title, according to Ozaukee County Circuit Court records.

The false documents include a lien claiming $4 million was owed for improvements and maintenance at her former Mequon home — which was sold in 2022 through foreclosure.

There were other false filings tied to her former Mequon house in an attempt to cloud the title — and make it impossible for the new owners to resell the property, the criminal complaint said.

State criminal trial set after delay

Washington County Circuit Judge James Muehlbauer on Nov. 20 scheduled a trial to run from April 14 through April 18. The case is being tried in Washington County because one of Yang's alleged false liens was filed against the Ozaukee County sheriff.

Muehlbauer also entered not guilty pleas for Yang, who had yet to hire a criminal defense attorney. That came after a hearing on Yang's mental competency, with the judge ruling Yang is competent to stand trial, according to online court records.

Muehlbauer at an August hearing said Yang would be arrested if she continued to refuse to comply with his order for a competency evaluation.

Federal investigation still pending

In March 2022, federal court records tied to a raid on Yang's then-Mequon home showed she was under investigation on allegations of money laundering and wire fraud. That includes a claim she used funds from investors to gamble millions of dollars at Milwaukee's Potawatomi Casino Hotel.

That court record shows Yang is the subject of a criminal investigation in connection with a Ponzi scheme allegedly conducted through her firms: AK Equity Group LLC, AK Global Investing LLC, Xapphire Fund LLC, Xapphire G Fund LLC and Xapphire LLC.

That Internal Revenue Service investigation hasn't yet resulted in criminal charges.

Federal agency files civil fraud claims

The Securities and Exchange Commission in April 2022 said Yang and her company Xapphire LLC raised $16.5 million by making false and misleading statements to around 70 investors, and misappropriated more than $4 million.

Yang told members of the Hmong American community in Wisconsin, Minnesota and other states she would invest their money primarily through foreign exchange trading; they could expect annual returns ranging from 20% to 50%, and the trading was consistently successful, the SEC complaint said.

U.S. District Judge J.P. Stadtmueller in April 2023 ordered Yang to repay $4.06 million to investors — and pay the same amount as a fine. That money remains unpaid.

Tom Daykin can be emailed at [email protected] and followed on Instagram, X and Facebook.

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This article originally appeared on Milwaukee Journal Sentinel: Investor Kay Yang faces April trial on state charges. What to know