The self proclaimed “Chinese Warren Buffett” has been arrested in Toronto on charges of securities fraud. Warren Buffett, needs no introduction. He is considered to be one of the greatest investors of all time. But not only that, he has gained a lot of respect due to his honesty, transparency and willingness to provide insights on how he thinks about investing and philanthropy. It is quite sad to see Warren Buffett's named used to raise millions of dollars for investment to later find out that a fraud was orchestrated.
A warrant was issued on January 6, 2010 for the arrest of Weizhen Tang, 51, of Toronto, for Fraud. It is alleged that:
− between January 2006 and March 2009, Tang has been involved in online trading claiming to be the Chinese Warren Buffet
− there are more than 100 victims who have been defrauded of approximately $30 million through a "Ponzi scheme"
− victims have been located in the United States, across Canada and China.
Some reports are stating that the Chinese Warren Buffet that paid $2.1 million for a lunch with Warren Buffett has been arrested for fraud. The person who won the lunch is Zhao Danyang, not Weizhen Tang. The person that paid $2.1 million for lunch is not the orchestrator of this fraud. That is the good news in this story.
According to an earlier SEC press release from April 2009, Tang specifically targeted members of the Chinese-American community and solicited U.S. investors to directly and indirectly invest in his Hedge Fund. It also alludes that approximately $9.6 million in investor principal is unaccounted for. It seems that the recent warrant is part of the SECs conclusion of its investigation which claims that $30 million was lost.
Tang surrendered peacefully upon returning from China on a flight into Toronto. He is apparently co-operating with the investigators. He is also accused of trading in securities while not properly registered and of performing illegal distributions of securities.
press release – Toronto police issue warrant (January 6, 2010)
press release – Toronto police make arrest (January 13, 2010)
The real, American Warren Buffet has been buying Exxon Mobil Corporation (ticker: XOM), Republic Services, Inc (ticker: RSG), Wal-Mart Stores, Inc (ticker: WMT) and Wells Fargo & Company (ticker: WFC). He has been reducing his holding of Moody's Corporation (ticker: MCO).
A warrant was issued on January 6, 2010 for the arrest of Weizhen Tang, 51, of Toronto, for Fraud. It is alleged that:
− between January 2006 and March 2009, Tang has been involved in online trading claiming to be the Chinese Warren Buffet
− there are more than 100 victims who have been defrauded of approximately $30 million through a "Ponzi scheme"
− victims have been located in the United States, across Canada and China.
Some reports are stating that the Chinese Warren Buffet that paid $2.1 million for a lunch with Warren Buffett has been arrested for fraud. The person who won the lunch is Zhao Danyang, not Weizhen Tang. The person that paid $2.1 million for lunch is not the orchestrator of this fraud. That is the good news in this story.
According to an earlier SEC press release from April 2009, Tang specifically targeted members of the Chinese-American community and solicited U.S. investors to directly and indirectly invest in his Hedge Fund. It also alludes that approximately $9.6 million in investor principal is unaccounted for. It seems that the recent warrant is part of the SECs conclusion of its investigation which claims that $30 million was lost.
Tang surrendered peacefully upon returning from China on a flight into Toronto. He is apparently co-operating with the investigators. He is also accused of trading in securities while not properly registered and of performing illegal distributions of securities.
press release – Toronto police issue warrant (January 6, 2010)
press release – Toronto police make arrest (January 13, 2010)
The real, American Warren Buffet has been buying Exxon Mobil Corporation (ticker: XOM), Republic Services, Inc (ticker: RSG), Wal-Mart Stores, Inc (ticker: WMT) and Wells Fargo & Company (ticker: WFC). He has been reducing his holding of Moody's Corporation (ticker: MCO).
