Here's another article on Tang. Sorry, but there is no available online URL for verification. However, my source attributes the following article to The Greenville (SC) News, and is believed to be dated 2/8/2000. The actual author/reporter is unknown to me or I would give credit to him/her for the story...
Headline: ARIZONAN ADMITS TO ROLE IN SCAM WITH SENECA TIES
ANDERSON--An Arizona man pleaded guilty on Monday to conspiracy for his role in a Ponzi investment scheme authorities now say bilked investors across the United States out of $57 million in nine months.
Alvin A. Tang, 40, of Scottsdale, Ariz., owned United States Guarantee Corp., the company authorities say was used to give the scheme an appearance of legitimacy and lull investors into a false sense of security.
Tang faces up to five years in prison and a $250,000 fine and will be sentenced after a pre-sentencing report is done.
He's the second to plead guilty in connection with the scheme, which authorities say was so convincing and appealing that it was able to entice more than 1,200 investors through newspaper ads and via the Internet.
Federal court documents allege that Virgil Womack, 59, of 503 Maisson deBrique, Seneca, used a network of salespeople he recruited across the United States to market a guaranteed contract he claimed would produce returns for investors of up to 25 percent.
Investors were assured their principal would be invested in high-yield government securities and on real estate development projects, authorities allege.
They were told Unites States Guarantee, Corp., Tang's company, would back up the investment, Assistant U.S. Attorney David Stephens said during Monday's court proceedings. Investors were told that the corporation had assets in excess of $6 billion, authorities said.
Authorities allege that none of the money was invested.
KJC |
