California financier Danny Pang was arrested by FBI agents on Tuesday on federal charges that he allegedly structured cash transactions to keep them below $10,000, a sum which triggers a report to the federal government, U.S. prosecutors said today.
Pang was arrested after prosecutors from the U.S. Attorney’s office filed a criminal complaint with structuring charges in U.S. District court in Santa Ana, California. No motive for the alleged crime was given in a released statement.
Yesterday Pang was sued by the Securities and Exchange Commission for allegedly defrauding investors of hundreds of millions of dollars. Pang is the founder and former chief executive of PEMGroup, based in Irvine, California.
He is expected to make his initial court appearance on criminal charges tomorrow, prosecutors said.
Pang, through PEMGroup employees, cashed 38 checks between $9,500 and $9,900, the prosecutors say. Sometimes he cashed up to two of them per day. Pang personally only cashed four of the checks, while most of the rest were cashed by his personal assistant.
If convicted of the alleged crimes, he faces up to 10 years in federal prison.