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21 Apr 2010

Hedge Fund Manager Released On Bail in Texas/Canada/China Investment Fraud Case

HedgeCo News - Weizhen Tang was jailed in mid-January this year on the charges of running a multi-million dollar Ponzi scheme. The SEC said that the defendant orchestrated the fraud through an overseas hedge fund and a Texas-based investment adviser.

Tang was released after a bail review on $150,000 bail, the Toronto Sun reported. The bail conditions order the hedge fund manager to stay in Canada and do not permit him from communicating with investors or hedge funds.

The fraud is alleged to have began as early as 2004, and through the hedge fund Tang raised between $50 million and $75 million from more than 200 investors. According to the SEC complaint, more than $51 million was allegedly involved in the hedge fund failure.

A Judge also previously granted a temporary restraining order, asset freeze, and other emergency relief against the defendants.

“I want a chance to prove my innocence, that’s why I came back from China,” Weizhen Tang told reporters at the Toronto Sun.

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