Victims Say $39M Ponzi Scheme Was a Father-Son Operation

A California man is accused of running a $39 million Ponzi scheme, and spending at least $7 million of investors' stolen money to fund his own “lavish lifestyle.”

Derek Chu, 41, of Alamo, Calif, was charged with eight counts of money laundering and three counts of wire fraud in federal court last week.

Between 2013 and 2020, the indictment alleges, Chu used several companies to raise $29 million from hundreds of investors, promising the funds would be used to buy and resell professional basketball tickets and luxury suites at Oracle Arena, in Oakland, California; the Staples Center, in Los Angeles, California; and the Chase Center, in San Francisco, California.

Read more at The Daily Beast.