TORONTO - Financial adviser Weizhen Tang -- who's accused of orchestrating a Ponzi scheme that allegedly defrauded investors of tens of millions of dollars -- was arrested Wednesday night upon his return to Toronto from China.

Staff Sgt. Ed Tymburski, a Toronto police spokesman, said two officers arrested Tang aboard the plane when his flight arrived at Pearson International Airport.

Tymburski said Tang was taken to Toronto's 51 Division where he would spend the night in jail pending a court appearance on Thursday.

Toronto police issued a Canada-wide arrest warrant this month for Tang, 51, who faces a charge of fraud over $5,000.

The warrant is in addition to 12 counts of breaching the Securities Act laid last June by the Ontario Securities Commission in connection with the hedge fund Tang administers, the Oversea Chinese Fund Limited Partnership.

It's alleged that between January 2006 and March 2009, more than 100 victims were defrauded of approximately $30 million through an online trading Ponzi scheme. Toronto police allege there were victims in the United States, China and Canada, including one Toronto-area resident who allegedly lost $2.4 million.

A police investigation was launched in April 2009 after a number of people walked into a Toronto police division to complain that they'd been defrauded.

Arrangements had been made between police and Cuddy in November to bring the suspect back to Canada in late December, but he did not return and police said they believed he was trying to raise money for his defence in Asia.

Tang had been planning to return to Canada on Dec. 29 and had asked for an extension but police were not happy with that, said Loftus Cuddy, Tang's lawyer.

A native of mainland China, Tang came to Canada in the 1990s. He is a Canadian who lives in Toronto with his wife and children and his company is based in the city, Cuddy said.

A well-known figure in Toronto's Chinese community, Tang helped fund the Chinese Lunar New Year Show and put on investment summits that featured economists from China and the United States.

The Ontario Securities Commission alleges Tang committed securities fraud. He's also accused of unregistered trading in securities and illegal distributions of securities. His trial in provincial court in that case is scheduled to begin April 19.

Earlier this month, the commission put out an investor warning that said Tang may be soliciting residents of Ontario for investment purposes and that previous Oversea Chinese Fund investors, their family or friends may be targeted.

Last April, a federal judge in Dallas granted a request by the U.S. Securities and Exchange Commission for emergency relief for investors, freezing the assets of Tang and several of his businesses, including the Texas-based WinWin Capital Management LLC. The judge appointed a receiver to take control of Tang's assets, which also include WinWin Capital Partners LP and Bluejay Investment LLC.

The U.S. complaint alleges Tang has already told investors of the Ponzi scheme.

In February, the U.S. commission said, he acknowledged in a letter to clients that he tried to conceal trading losses and attract new investors to his hedge fund by posting false profits on account statements and using funds from new investors to pay at least US$8 million in fake profits to earlier investors.