Fund manager accused of $60 million fraud

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http://www.thestar.com/Business/article/609083

Fund manager accused of $60 million fraud

Investors in Canada, U.S. and China targeted

Mar 27, 2009 04:30 AM

Madhavi Acharya-Tom Yew

and Keung

Staff Reporters

The Ontario Securities Commission is investigating an alleged Ponzi scheme run

by a Toronto businessman that may have raised as much as $60 million, some from

the Chinese Canadian community, according to court documents filed this week.

The allegations come a week after the OSC issued a cease trade order on March 17

against Weizhen Tang, who ran Weizhen Tang Corp., Weizhen Tang and Associates

and Oversea Chinese Fund Ltd. Partnership. " Evidence obtained by staff

demonstrates that recently Tang had been using new funds raised from investors

to pay redemptions requested by previous investors, " according to documents

filed in Ontario Superior Court of Justice on March 24.

Described on his company's website as " the Chinese Warren Buffett, " Tang could

not be reached for comment yesterday.

Interviewed by the Toronto Chinese-language newspaper Sing Tao Daily last week

before the OSC issued the temporary order to cease all trading of his company,

Tang said he had been aware of complaints against his company.

But Tang said his business has shifted from securities to foreign exchange and

the order would have little impact on his operations.

Tang and his companies have raised funds in Canada, the United States and

mainland China, the OSC said in its cease trade order.

From 2006 to 2008, Weizhen Tang and Associates " distributed units of Oversea to

members of the public raising approximately $60 million (U.S.), " the court

filing reads.

OSC staff has recently received complaints from members of the public " who had

placed funds with Oversea China and have been unable to redeem their

investments, " according to the court documents.