Swiftsure Securities Ltd. warns new Chinese immigrants of fund fraud in Canada
Swiftsure Securities Ltd. is investigating Weizhen Tang, who ran Weizhen Tang Corp and Oversea Chinese Fund Ltd Partnership, over the allegations that he defrauded tens of millions US dollars of his clients in Canada and the United States.
The sudden fall of this Toronto fund manager, who bills himself as "the Chinese Warren Buffett" but actually turns out to be "the Chinese Bernard Madoff", prompted Canadian financial firms to warn new Chinese immigrants not to be lured by the promise of super high returns in making an investment.
Tang's clients, who are mainly new immigrants from the Chinese mainland, were reportedly divided into two opposing groups when the 50-year-old man, who has made a promise of "one-percent-weekly returns, " first admitted his company had no assets to pay requested redemptions over a month ago.
One group of clients filed complaints, which immediately placed an all-cease-trading order to Tang. However, another group signed a different letter and asked to stop the cease-trading order, in the hope that Tang will be able to stage a comeback to repay their money.
Tang, however, insisted his investment setback was a reasonable reflection of the current tumbled market. And he denied that he guaranteed the one-percent weekly returns in client contracts whatsoever.
Tang, however, insisted his investment setback was a reasonable reflection of the current tumbled market. And he denied that he guaranteed the one-percent weekly returns in client contracts whatsoever.
"The one-percent weekly returns are the ideal goals I have set, " Tang said.
"I don't think it's about me being overconfident, but rather, the fact that I'm the only capable investor for doing so in the Chinese community, " he said.
Two of his clients were also present in the interview but did not want to be named.
"We thought he is so trustworthy that we gave him the money even without adequate knowledge of the financial market, " one client said.
"I take the gamble and pay the loss. No gamble, no hope, " said the other.
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