Federal prosecutors have alleged that a Chinese businessman concocted an intricate and expansive fraud scheme, in which luxury items such as Ferraris, Bugattis, and $36,000 mattresses were illicitly procured with the pilfered funds.
According to a criminal complaint filed in a U.S. District Court in Los Angeles, the accused fraudster, Mingzhu Dai, utilized multiple business entities and sham transactions in order to embezzle approximately $1 billion from Chinese investors between 2007 and 2019.
The complaint asserts that Dai and her conspirators sought to obfuscate the true source of the funds by utilizing a complex network of bank accounts and fictitious investments, with the proceeds of the fraud being used to purchase numerous luxury items.
The complaint further alleges that the funds were used to purchase a number of vehicles, including two Ferraris and two Bugattis, as well as multiple high-end mattresses, costing as much as $36,000 each.
Dai is facing a number of charges, including conspiracy to commit mail fraud, wire fraud, and money laundering. She is also facing up to 20 years in prison for each of the charges.
The case serves as a reminder of the need for investors to exercise caution when considering investments and to be aware of the potential for fraud.