Canada police search for "Chinese Warren Buffett"

Thu Jan 7, 2010 10:41am EST
 
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TORONTO (Reuters) - Canadian police issued an arrest warrant on Wednesday for a man who promoted himself as the "Chinese Warren Buffett" but is accused in Canada of operating a C$30 million ($29 million) Ponzi scheme.

Weizhen Tang, 51, is accused of defrauding more than 100 victims in Canada, China and the United States, according to Toronto police.

Ontario securities regulators barred Tang in June from any trading activity and warned investors on Wednesday they believed Tang was against soliciting business from relatives of his previous victims.

Tang, who local news reports said was believed to have fled to Hong Kong, was scheduled to go on trial in Ontario for alleged security violations in April, according to the Ontario Securities Commission.

Under a Ponzi scheme, early investors are conned by way bogus returns paid with money from subsequent victims, with the plan's perpetrators pocketing the cash as the fraud collapses.

($1=$1.03 Canadian)

(Writing by Allan Dowd; editing by Rob Wilson)

 
<p>Weizhen Tang in an undated image. Canadian police issued an arrest warrant on Wednesday for the man who promoted himself as the "Chinese Warren Buffett" but is accused in Canada of operating a C$30 million ($29 million) Ponzi scheme. REUTERS/Toronto Police/Handout</p>