Taiwanese immigrant financier Danny Pang, accused by federal regulators of defrauding investors out of hundreds of millions of dollars, was arrested by the FBI on charges he withdrew about $360,000 from a company account through dozens of small transactions so he wouldn't have to report the sum to federal regulators.
The U.S. attorney's office said the founder and former chief executive of the Private Equity Management Group companies was arrested at his lawyer's office in Santa Ana on Tuesday.
The Securities and Exchange Commission filed a lawsuit Friday against Pang and PEMGroup, accusing him of bilking investors by falsely portraying returns as coming from investments in timeshare real estate and seniors' life insurance policies. Regulators say the money in fact came from a Ponzi scheme in which he used funds raised from newer investors to pay earlier ones.
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