Last week, Alberto Chang-Rajii and his asset management company, Onix Capital LLC, were charged with fraud by the SEC. Using false claims of Chang’s wealth and investment success as an award-winning multi-millionaire “angel” investor, Chang and Onix apparently defrauded investors out of millions of dollars. In addition to the claims of fraud, the SEC announced an asset freeze against the Miami Beach-based company and its owner.
Allegedly, Chang and Onix Capital sold more than $5.7 million in Onix promissory notes that “guaranteed” annual returns of 12 to 19 percent and raised more than $1.7 million in investor funds. Chang represented that these funds would be invested in promising companies including Uber, Snapchat and Square. However, instead of doing as promised, the SEC accused Chang of diverting the funds to pay other investors.
Earlier this year, after reports were published in the U.S. and Chile, where Chang is from, that exposed the false claims, Chang transferred approximately $4 million to banks in the United Kingdom, Switzerland, Australia, and Malta, where he fled after he left the United States.
According to Glenn Gordon, Associate Director of the SEC’s Miami Regional Office, “Once the defendants’ alleged misrepresentations were exposed, they stopped paying investors and shifted millions of dollars of investor assets offshore.”
As a result of the fraudulent activities, the SEC is seeking to have Onix and Chang return all allegedly ill-gotten gains, prejudgment interest, and financial penalties, as well as other relief for investors.
Cases like this one serve as a reminder to investors to perform thorough due diligence when researching and vetting investment opportunities. For more information on how Jacko Law Group, PC can help you take steps to avoid investor fraud, contact us at (619) 298-2880, or email email@example.com. Thank you.