SEC Sues California Man Alleging Real Estate Fund Fraud
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California businessman Walter Ng, his business partner and his son were sued today by the U.S. Securities and Exchange Commission over a multimillion-dollar fraud on investors in their real estate funds.
Ng and his partner raised more than $85 million from investors, many residing in San Francisco, from 2007 to 2009 for a real estate fund that they said was strong, safe and successful, the SEC said in a complaint filed today in federal court in San Francisco. Most of the money was used to pay off investors in an earlier real estate fund having cash flow problems. Both funds went into bankruptcy, leaving investors unlikely to recover their money, according to the complaint.