DALLAS - A CANADIAN man who dubbed himself the 'Chinese Warren Buffett' faces federal charges of running a Ponzi, or pyramid, scheme targeting Chinese-Americans that has left millions of dollars unaccounted for.
The Securities and Exchange Commission said on Monday that a federal judge in Dallas has frozen the assets of Weizhen Tang, 50, of Toronto, and several of his businesses, including a Texas-based capital management firm.
The SEC said Tang raised up to US$75 million (S$113 million) from about 200 investors for his hedge fund and operated a Ponzi scheme with the hedge fund since at least 2006.
The government said Tang recently told investors he paid out about US$8 million in fake profits. But the SEC said another US$9.6 million is missing.
Tang didn't immediately return a message seeking comment.
Charles Ponzi was an immigrant who swindled 40,000 Americans out of US$140 million (in today's dollars) between 1919 and 1920.
Promising to double investors' money in 90 days, he paid off early investors with the money he collected from new investors. -- AP
