An American man has been charged with duping foreign investors, mainly Chinese, out of 970 million yuan ($156 million) by convincing them they were participating in a program to acquire residency in the US, the securities and exchange commission (SEC) has announced.
Anshoo Sethi, himself an immigrant from India, convinced Chinese investors to purchase three million yuan ($500,000) worth of securities each from two firms he had created, and wire a further 250,000 yuan ($41,500) to his bank account as an “administrative fee”. Sethi promised that on top of a handsome return on their investments, which he said were financing valuable construction projects, the investors would also be fast tracked for US residency.
While US authorities have frozen all the bank accounts associated with the alleged fraud, they warn that Sethi and his companies have already spent more that 90 percent of the money collected. $2.5 million was also transferred to Sethi’s personal bank account in Hong Kong.