A New York Man has been accused by authorities for not only running a $5 million ponzi scheme but also using some of the money to cryogenically freeze his wife.
From approximately 2007 to 2011, Whileon Chay, 38, solicited the money in a scheme to defraud investors under a business called 4X Solutions, according to an indictment filed in Manhattan federal court last Friday.
The papers also say he used some of the money to pay his personal expenses and maintain a lavish lifestyle, which he flaunted to potential investors. This included driving a different luxury car virtually every time he met with one particular investor.
He also paid more than $150,000 for his wife, who died in or about 2009, to be cryogenically frozen.
In October 2011, during the course of the investigation, Chay left New York for Lima, Peru, and has not returned to the United States, according to a written statement made by Manhattan U.S. Attorney’s Office.
“As alleged, Whileon Chay deceived investors about the commodities pools he managed, claiming to be a successful trader when he in fact was losing millions and misappropriating investors’ money for his own use,” Manhattan U.S. Attorney Preet Bharara said in the statement. “Although he has fled the country, these charges against him will persist and so will our efforts to bring him back to face them.”
Chay has been charged with commodities fraud, wire fraud and mail fraud.
The mail and wire fraud charges each carry a maximum prison term of 20 years, and the commodities fraud charge a maximum term of 10 years.