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