Self-Proclaimed “Chinese Warren Buffett” A Fraud
Yesterday, the SEC announced that it had stopped a multi-million dollar Ponzi scheme and affinity fraud that had primarily targeted Chinese-Americans in the Dallas Texas area. The SEC has charged Weizhen Tang, the self-proclaimed "Chinese Warren Buffett,” and his Canadian-based hedge fund. In connection, the SEC also charged Texas-based WinWin Capital Management LLC as a defendant, and named two other Tang entities as relief defendants: WinWin Capital Partners LP, and Bluejay Investment.
The statement “alleges that Tang raised between $50 million and $75 million for the Oversea Chinese Fund Limited Partnership from more than 200 investors, and has operated a Ponzi scheme with the hedge fund since at least 2006…alleges that Tang told investors in February 2009 that in an effort to conceal substantial trading losses and attract new investors to the Oversea Chinese Fund, he posted false profits on investors' account statements and used funds from new investors to return principal and pay out at least $8 million in "fake" profits to other investors.” |
