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by Mike Caswell
The Ontario Securities Commission has warned the public that Weizhen Tang, the man who called himself the "Chinese Warren Buffett" as he ran a hedge fund scheme in 2009, is once again planning to solicit investors. Mr. Tang is setting up an investment fund that would supposedly offer returns of 1 per cent per week, the OSC says. There is no indication that anybody has lost any money, at least not yet.
The warning from the OSC comes just over 10 years after Mr. Tang first landed in trouble. The OSC, the U.S. Securities and Exchange Commission, and prosecutors in Toronto accused him of defrauding investors of millions through a hedge fund called Oversea Chinese Fund LP. He claimed that investors would realize returns of 1 per cent per week, but investors saw little in the way of real returns. In Ponzi fashion, he paid early investors with money from later ones, the SEC said.
The OSC has provided no details of Mr. Tang's present scheme, but it at least somewhat resembles his prior fraud in that Mr. Tang is offering returns of 1 per cent per week. The OSC says that he plans to create a fund that will target individual and institutional investors. The regulator warns investors not to invest with him or with any companies associated with him.
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