The SEC Targets 'Affinity Fraud' With California Ponzi Scheme Crackdown


19 Sep 2023 9:11 PM

The SEC has launched an enforcement action agaisnt the alleged mastermind of a Ponzi scheme targeting members of the Tongan community....

  • The SEC has charged Tilla Walker Sumchai of Richmond, California, for a securities fraud scheme targeting members of the Tongan community.
  • Sumchai allegedly convinced investors to buy shares of "Tongi Tupe" with promises of high returns, but it turned out to be a Ponzi scheme.
  • She raised $11.8 million from over a thousand investors in the Tongan community.
  • Sumchai faces both civil and criminal charges, including securities fraud, wire fraud, mail fraud, and unregistered securities offerings.
  • The scam targeted not only members of the Tongan community in the United States but also investors in Australia and New Zealand.

The article describes a fraudulent securities scheme that exploited the trust of the Tongan community. The sentiment is negative as it highlights the harm caused by the scam and the betrayal of trust.

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You May Ask

Who is Tilla Walker Sumchai and what charges does she face?What was the alleged securities offering called?How much money did Sumchai raise from investors?What are the charges against Sumchai?Besides the Tongan community, which other countries were targeted by the scam?

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