FBI Seeks Victims of Tilila Walker Sumchai’s $13 Million Ponzi Scheme
The U.S Federal Bureau of Investigation (FBI) is reaching out to potential victims of a Ponzi scheme operated by Tilila Siola’a Walker Sumchai, who is facing federal charges in the Eastern District of California. She is accused of defrauding investors in the Tongan Community out of $13 million in an international Ponzi scheme. Furthermore, the U.S. Securities and Exchange Commission (SEC) has filed a separate complaint against Walker Sumchai for violating federal securities laws.
According to the federal indictment, Walker Sumchai orchestrated the scheme from her office in Stockton, California, targeting investors in the United States, Australia, and New Zealand. Described as an international Ponzi scheme by federal prosecutors, the 61-year old defendant faces charges of wire fraud, mail fraud, securities fraud, and selling unregistered securities.
Walker Sumchai allegedly operated under an investment program called Tongi Tupe, claiming to use a secret algorithm to generate significant returns for investors. She promised investors that their principal investments would be returned along with substantial profits within weeks or months. Additionally, she enticed some investors by offering them homes in Lodi, California, worth approximately $480,000 in exchange for a $30,000 investment.
However, investigations revealed that Walker Sumchai used the invested money for personal expenses, including gambling, instead of fulfilling her promises to investors. She also engaged in a tactic known as lulling, using funds from later investors to pay earlier investors in order to maintain the appearance of success and avoid detection.
The fraudulent scheme involved more than 1,000 investors who collectively invested over $13 million. Walker Sumchai, who served as the CEO of the non-profit group PATOA, allegedly received some checks from investors under the company’s name.
The USDOJ has urged potential victims to come forward by completing an online form provided by the FBI for this investigation. Social media platforms, particularly within the Tongan community, have been instrumental in sharing information about the charges against Walker Sumchai and encouraging victims to seek justice.
If convicted, Walker Sumchai could face up to 20 years in prison and significant fines for charges related to mail fraud, wire fraud, and securities fraud.
The SEC has also taken action, filing a complaint alleging that Walker Sumchai raised around $11.8 million through fraudulent securities offerings specifically targeting the Tongan American community. The complaint highlights that she initially targeted influential Tongan American leaders who were paid substantial returns on their investments to gain credibility. Subsequently, these leaders hosted meetings to promote the Tongi Tupe program to other members of the Tongan American community.
The investigation and charges against Walker Sumchai highlight the importance of due diligence and caution when considering investment opportunities. Potential victims are urged to report any information relevant to the investigation and seek legal recourse to recover their losses.
The FBI and SEC investigations serve as a reminder that financial scams can affect individuals and communities, emphasizing the need for increased awareness and vigilance to prevent future fraudulent activities.
