Accused of overseeing Ponzi scheme

Toronto police have issued an arrest warrant for a man claiming to be the “Chinese Warren Buffett” for allegedly defrauding more than 100 people of a combined $30 million.

Weizhen Tang, 51, is wanted on fraud charges for overseeing what police call a Ponzi scheme between January 2006 and March 2009.

His online trading firm in Canada, Oversea Chinese Fund Limited Partnership, required investors to contribute at least $150,000 each.

The more than 100 investors who were defrauded reside across Canada, the United States and in China, police said. They have complained that they have not been able to access the money they invested in Tang’s company.

One person had been defrauded of over $2.3 million, said Toronto Police Const. Tony Vella.

Tang was scheduled to appear before police on Dec. 29, but he did not keep that appointment, and police believe he is now in Hong Kong.

“He claimed that he needed to stay there… [because] he needed money to build up his defence,” said Vella. “An arrest warrant has been issued and we are in communication with the Hong Kong authorities to see what we can do to try to bring him back to Toronto.”

Police are now appealing to the public to provide information that could help lead to his arrest.

The Ontario Securities Commission (OSC) has also forbidden Tang to trade and charged him in June on 12 fraud-related counts. A provincial court trial on those charges is set to begin on April 19.

Tang acknowledged he failed to disclose losses, fabricated investor account statements and lost all investor money, the OSC says.

Tang is also wanted in the United States on a number of fraud-related charges.

January 6, 2010, cbc news

China, financial scandals, losses, ponzi, Scams