TORONTO - A Toronto financial adviser accused of operating a multimillion-dollar Ponzi scheme had to spend another night in jail Monday pending a resumption of his bail hearing on Tuesday.
Weizhen Tang, 51, who's charged with fraud over $5,000, is accused of defrauding about 100 investors of about $30 million through his hedge fund, the Oversea Chinese Fund Limited Partnership between January 2006 and March 2009. He returned to Canada from China last week to face the charge.
In court Monday, his wife Hong Xiao, longtime friend Tao Jie and his hairdresser Jing Qing Tao told court they were willing to act as his sureties.
Speaking through an interpreter, they said they were willing to use the equity in their homes to guarantee Tang's bail and to supervise him to ensure he didn't solicit more investors or engage in day trading.
But Crown prosecutor Warren Thompson said outside the courtroom the Crown opposes bail, fearing Tang could flee or commit further offences.
Xiao, who's an insurance broker, told court she and Tang had between $80,00-$100,000 equity in their house.
Thompson asked Xiao if she knew anyone with assets of $250,000 that could be used. She said she did.
But he disputed whether liens against the family home exceeded its value.
Outside the court, Thompson said he floated the $250,000 figure to determine how much money Tang's supporters could put up to secure bail.
Jie said she has known Tang for about 10 years and that they came from the same town in China. She believes Tang wouldn't violate bail conditions by trading, she said.
"I trust Mr. Tang won't disappoint me," she said.
Tao, who said she'd only known Tang for three years, said she trusts "he is a good person" and she trusts Xiao.
"I believe they want to face this case and finish this case," she said.
The Crown and defence lawyers will make their submissions Tuesday to justice of the peace Paul Mushinski, who said a careful review of the evidence is needed before he can make a ruling.
Both the Crown and the defence said they did not ask for a publication ban on the hearing.
When asked why outside the courtroom, defence lawyer Loftus Cuddy said "Mr. Tang likes publicity."
Earlier, Toronto fraud squad Det. Gail Regan outlined how she was handed the case in May 2009 after citizens went to police, claiming Tang had taken their money.
Thompson asked Regan if Tang was licensed to deal with mutual funds and other investments and she said "no he is not."
Regan testified she took a local arrest warrant out for Tang on Nov. 19 after he'd left the country but said she did not believe Tang knew of plans to arrest him.
It became a Canada-wide arrest warrant Jan. 6 when he didn't return to Canada on Dec. 29 as arranged, Regan said.
Cuddy said in a voicemail Tang had gone to China and would be staying there a little longer, said Regan.
Tang, who is well known in Toronto's Chinese community, returned voluntarily from Shanghai Jan. 13.
Toronto police allege there were victims in Canada, the U.S. and China.
Tang faces trial April 19 on 12 counts of breaching the Securities Act that were laid last June by the Ontario Securities Commission in connection with the Oversea Chinese Fund Limited Partnership.
Last April, a U.S. federal judge granted emergency relief for U.S. investors, freezing the assets of Tang and several of his businesses and appointed a receiver to take control of those assets.
The U.S. Securities and Exchange Commission alleges Tang told investors of the Ponzi scheme in a letter in February 2009.