Manitobans are being warned to take steps to avoid investment fraud as a deadline looms for a man convicted in 2012 in connection with a multi-million dollar Ponzi scheme.
The Manitoba Securities Commission said the man, Weizen Tang, has until July 2020 to pay back $2.8 million in restitution or he will face another five years in jail.
As the date approaches, there are concerns he may target new investors.
Similar warnings have recently gone out in Ontario and Nova Scotia.
The Securities Commission said Tang is not registered to trade securities in Manitoba and never has been, listing several other entities it says are not registered to trade: Overseas Chinese limited Partnership, Weizhen Tang and Associated Inc. Oversea Chinese Fund Limited Partnership Business, and Weizhen Tang Corp.
“Mr. Tang has indicated to media that he has ‘done nothing wrong,’ and that he intends to fully resume investment activities outside of Ontario,” says Jason Roy, senior investigator with the Manitoba Securities Commission in a news release that noted high rates of return are being promised.
Investors are being asked to follow these tips to protect against potential investment fraud:
- Start by checking an individual or company’s registration at aretheyregistered.ca;
- Research an investment before making a commitment;
- Look for investment fraud red flags such as promises of high returns with low risk, pressure to -invest quickly, and inconsistent details;
- Never send money to anyone you only know from an unsolicited phone call or email; and
- Never give out sensitive personal information online or over the phone.
People are asked to contact the Manitoba Securities Commission if they believed they’ve experienced investment fraud and can call 1-855-FRAUD-MB.
