A federal judge has granted the Securities and Exchange Commission’s request to continue freezing the assets of a California financier charged in a fraud case involving hundreds of millions of dollars.
U.S. District Judge Philip S. Gutierrez ruled Thursday there was sufficient evidence of fraud to justify the continued freeze of Danny Pang’s assets. The judge also appointed Robert P. Mosier as a permanent receiver in charge of Pang’s companies.
Pang’s spokesman Roger Diamond said they were “disappointed with the court’s rulings.”
“This is just the beginning of the case and Mr. Pang looks forward to demonstrating that he did nothing wrong,” Diamond said.
Pang is accused of bilking investors in his Private Equity Management Group companies by falsely portrayed returns as coming from investments in timeshare real estate and life insurance policies of seniors. His attorneys have denied any wrongdoing.
Mosier had said in previous court documents that Pang managed his investments as a “personal piggy bank” to fund a lavish lifestyle, including spending $35 million on a fleet of jets, $1 million on a cruise for employees and $1.5 million on a China vacation for his staff.
Pang had accepted more than $800 million from Taiwan-based investors.
Pang’s attorneys wanted to remove Mosier, claiming bias, but Gutierrez denied the motion.
Copyright 2009 The Associated Press.