Canadian police seek man accused of masterminding Ponzi scheme

Arrest warrant issued in alleged Ponzi scheme

TORONTO — Canadian police have issued an arrest warrant for a Canadian man who dubbed himself a “Chinese Warren Buffett” and is accused of masterminding a Ponzi scheme that has left millions of dollars unaccounted for.

Toronto Constable Tony Vella said Wednesday Weizhen Tang, 51, of Toronto, made arrangements to turn himself in, in December, but did not show up.

Vella said Tang is apparently in Hong Kong and is claiming he needs to make more money to build his defense before he returns to Canada. Vella said police are working with authorities there to bring him back to Canada to face a fraud charge.

Canadian police allege that between January 2006 and March 2009 more than 100 victims were defrauded of approximately $30 million through an online trading Ponzi scheme.

Authorities say victims were scammed in the United States, Canada and China, including one resident in the Toronto area that allegedly lost more than $2.3 million.

Vella said a number of people walked into a Toronto police division in April 2009 claiming they were defrauded and an investigation was launched.

Tang also faces federal charges in the U.S.

Tang raised between $50 million and $75 million from about 200 investors for his Canada-based hedge fund, Oversea Chinese Fund Limited Partnership, and operated a Ponzi scheme with the hedge fund since at least 2006, the SEC said.

Last April a federal judge in Dallas granted the SEC’s request for emergency relief for investors, freezing the assets Tang and several of his businesses, including the Texas-based WinWin Capital Management LLC. The judge appointed a receiver to take control of Tang’s assets, which also include WinWin Capital Partners LP and Bluejay Investment LLC.

Tang defended himself on his company Web site last year. He vowed to clear his name, calling the charges “an undesired thing” that he will face “with a positive attitude.”

However, the SEC complaint alleges Tang has already told investors of the Ponzi scheme.

In February, the SEC said, he acknowledged in a letter to clients that he tried to conceal trading losses and attract new investors to his hedge fund by posting false profits on account statements and using funds from new investors to pay at least $8 million in fake profits to earlier investors.

The Ontario Securities Commission, Canada’s main stock market regulator, warned investors Wednesday that Tang or his associated companies may be soliciting Ontario residents for money, including previous Oversea Chinese Fund investors, their family or friends.

The OSC has also ordered Tang not to trade in any securities and has filed charges alleging that Tang ran a Ponzi scheme. Investors have complained they have been unable to withdraw their money from Tang’s companies.