The U.S. Securities and Exchange Commission (SEC) has issued an order banning Toronto-based money manager, Weizhen Tang, from associating with any investment advisor.
According to the order, Tang has failed to respond to an order instituting proceedings against him, which was served on October 22, and so is deemed to be in default. As a result, Tang is permanently enjoined from violating the antifraud and registration provisions of the U.S. federal securities laws.
“Tang will be barred from association with any investment advisor. This sanction will serve the public interest and the protection of investors,” the order says, adding, “Tang’s unlawful conduct was egregious, over a period of more than one year. There are no mitigating circumstances.”
The order indicates that the wrongdoing that underlies the injunction occurred from at least November 2007 until April 2009, “when Tang participated in a Ponzi scheme and other fraudulent schemes.” Additonally, it notes that Tang, jointly and severally with others, was also ordered to disgorge $9,126,448 and prejudgment interest of $2,667,119 and to pay a $9,126,448 civil penalty.
Last month, Tang was convicted of fraud in a Toronto court. He is currently awaiting sentencing.