Boonlua Chatree
Immigration police in Pattaya captured an American wanted for allegedly
running a Ponzi scheme that defrauded 37 people out of the equivalent of 60
million baht.
John Chi Yuan Lee, 40, was apprehended Oct. 4 while walking through Central
Center mall in North Pattaya. Police said the Taiwan native was traveling
under a false identity and had four fake passports.
The
run is over - John Chi Yuan Lee has been arrested for running a Ponzi
investment scheme.
Lee was wanted by the U.S. Department of Homeland Security and Interpol on a
Los Angeles arrest warrant for allegedly defrauding investors in his Beverly
Hills, Calif. firm Legacy International, which purported to trade securities
with a 25 percent annual return.
According to a 2006 cease-and-desist order from the California Department of
Corporations, Lee took about $3 million in investments from 45
“unsophisticated” individuals, telling them he was an experienced trader and
could guarantee a return of 25 percent on their investments in a portfolio
of U.S. and international securities.
What he didn’t tell them, the court order stated, was that he lacked any
sort of investment background, used the money for personal gain and paid out
any “returns” to investors with funds collected from newer investors. Legacy
International had its business licenses suspended in 2002 and 2003, but
continued to collect funds from investors through 2006.
