Securities regulators in Ontario and Nova Scotia are warning the public not to invest money with Toronto-based investment manager Weizhen Tang or any companies associated with him.
Tang was convicted of fraud in 2012 in Toronto. During his trial, it was determined that investors lost $24 million in a Ponzi-type scheme. He was sentenced to six years in prison and ordered to pay restitution to his victims.
He was also banned permanently from selling investments in Ontario in 2016.
The Nova Scotia Securities Commission warns Tang has stated he plans to resume selling investment funds of the same type that landed him in prison — offering returns of one per cent per week — by targeting markets outside of Ontario.
Tang is not registered to sell securities in Nova Scotia.
Securities commission spokesperson David Harrison said the regulator has not received any reports or complaints against Tang.
"However, he has stated he intends to look for investors outside of Ontario," he said.
While the Ontario ban doesn't extend to Nova Scotia, it is unlikely Tang will be able to register as a licensed securities salesperson in Nova Scotia.
"Regulators can still reciprocate an order issued by another regulator," Harrison said. The commission hasn't enacted that yet.
On May 28, the Ontario Securities Commission also issued an investor alert. It warned the public not to invest with Tang or any associated companies including, Weizhan Tang and Associates Inc., Oversea Chinese Fund Limited Partnership Business and Weizhen Tang Corp.
In 2012, the U.S. Securities and Exchange Commission barred Tang from association with any investment adviser and he is also banned from the purchase or sale of securities in the United States.
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