Canada issues warrant for arrest of pyramid scheme suspect

Police have issued an arrest warrant for a Canadian accused of masterminding a pyramid scheme that has left millions of dollars unaccounted for.

Toronto Constable Tony Vella said Weizhen Tang, 51, of Toronto, made arrangements to give himself up in December, but did not turn up.

Constable Vella said Tang, who dubbed himself a “Chinese Warren Buffett” was apparently in Hong Kong and claiming he needs to make more money to build his defence before he returns to Canada.

He said police were working with authorities there to bring him back to Canada to face a fraud charge.

Canadian police say that between January 2006 and March 2009 more than 100 victims were defrauded of about nearly CAD$31m (€21m) through an online trading Ponzi scheme.

Authorities say victims were scammed in the US, Canada and China, including one resident in the Toronto area who allegedly lost more than $2.3m (€1.55m).

Tang’s lawyer, Loftus Cuddy, said he received a text message from his client asking for advice after police announced the warrant.

“Mr Tang is overseas, I don’t know where. Hong Kong is a logical guess,” Mr Cuddy said.

“I know that he is over there trading because he wants to make money to return to investors who lost money.”

Tang was originally supposed to come back to Canada on December 29, said Mr Cuddy, but he was doing well in online trading and was seeking a month-long extension from police.

“Mr Tang has maintained his innocence throughout. (He) has not given me any instructions to plead otherwise. He intends to mount a defence,” Mr Cuddy said.

“There have been losses in the millions, but whether those loses are the result of fraud is very much an issue.”

Tang came to Canada in the 1990s and obtained citizenship. He is well known in Toronto’s Chinese community for helping fund the Chinese Lunar New Year Show and putting on investment summits.