SEC Freezes Assets of Husband and Wife in Cancer Treatment Scam

By Chris Lange Updated Jan 13, 7:13AM EST · Published Jun 3, 11:15AM EDT

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SEC Freezes Assets of Husband and Wife in Cancer Treatment Scam — © Wikimedia Commons

The U.S. Securities and Exchange Commission (SEC) recently announced fraud charges and an asset freeze against a husband and wife. The couple is accused of misusing two-thirds of the money they raised from investors for the purpose of building and operating a new cancer treatment center that would use proton beam radiation to help oncology patients in Southern California.

According to the agency, Charles C. Liu and Xin “Lisa” Wang raised $27 million for the proton therapy cancer treatment center from 50 investors in China through the EB-5 immigrant investor program. They touted in promotional materials that the project would create more than 4,500 new jobs and have a substantial impact on the local economy, while giving foreign investors an opportunity for future U.S. residency.

However, presently there is no construction at the proposed site after over 18 months of collecting investments. Liu meanwhile has transferred $11 million in investor funds to three firms in China and diverted another $7 million to his and his wife’s personal accounts.

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In granting the SEC’s request to freeze the assets and accounts of Liu, Wang, and related entities, the court’s order prohibits them from raising further money from investors or spending remaining funds.

Michele Layne, director of the SEC’s Los Angeles Regional Office, commented:

We allege that Liu and Wang are using investor funds as their personal piggy bank and exploiting Chinese residents who were assured they were investing in an innovative project to create jobs and cure cancer patients.

According to the SEC’s complaint:

One of the websites Liu and Wang have used to promote investments in the cancer center project includes a section entitled “Government Support” with photos of former president George Herbert Walker Bush and former California governor Arnold Schwarzenegger. Their photos are accompanied by what appear to be letters they wrote in support of proton therapy in general rather than the depicted EB-5 project, which had not even been initiated at the time the letters were written.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.