Federal prosecutors say over 100 Chinatown residents in San Francisco lost $39 million in a Ponzi scheme involving basketball tickets and luxury suites.
Derek Chu, 41, was detained on May 2 for the 2013–2020 crime. The Alamo resident is suspected of defrauding individuals to acquire and resale Warriors tickets and premium suites at Oracle Center, Staples Center, and Chase Center.
Chu reportedly used victims’ money to repay investors. According to criminal records, he stole almost $7.3 million for his extravagant lifestyle.
Multiple victim attorneys Jaynry Mak and John Chow say the fraud targeted a certain demographic.
Federal prosecutors say over 100 Chinatown residents in San Francisco lost $39 million in a Ponzi scheme involving basketball tickets and luxury suites.
Derek Chu, 41, was detained on May 2 for the 2013–2020 crime. The Alamo resident is suspected of defrauding individuals to acquire and resale Warriors tickets and premium suites at Oracle Center, Staples Center, and Chase Center.
Chu reportedly used victims’ money to repay investors. According to criminal records, he stole almost $7.3 million for his extravagant lifestyle.
Multiple victim attorneys Jaynry Mak and John Chow say the fraud targeted a certain demographic.
Mak told KGO, “We believe the first round is Chinese, monolingual seniors. “Seniors were emotionally abused by this. Some were suicidal.”
A 76-year-old woman lost $3.5 million.
“Closer to 2016, all the money deals started, starting with, ‘Hey, if you give me some money I can give you some interest, right? 11%, 18%.’ “Sounds good,” Kingsley, the woman’s son, told KPIX.
Kingsley said early returns were constant and even reached millions after a home sale. They slowed and stopped.
Chu is suspected of using victims’ money to buy credit cards, expensive automobiles, fashionable purses, footwear, and jewelry. His father, Felix, a retired Chinatown insurance agent and Kingsley’s mother’s close acquaintance, is also suspected of involvement.
Chu faces eight wire fraud and three money laundering charges.
He may be imprisoned for 20 years for wire fraud and 10 years for money laundering, as well as fined $500,000.
Chu returns to court Wednesday.
