SEC Charges Eng Taing and Touzi Capital with Fraudulent Investment Scheme

WASHINGTON, D.C., November 29, 2024 ​- ​The Securities and Exchange Commission (SEC) has laid charges against Eng Taing, CEO ​of Touzi Capital, LLC, claiming a fraudulent investment plan that ​appropriates millions of investors. The complaint, filed at the U.S. District Court for the Northern District of California, accuses Taing and his signature of violating federal securities laws by misleading investors and abuses of their funds.

The SEC’s ​investigation revealed that Taing and Touzi ​Capital requested investments for real estate companies supposedly financed, promising substantial returns. However, instead of deploring the funds as they are represented, Taing would have had ​a ​lot of fun for personal purposes, including luxury purchases ​and unrelated commercial ​costs. This misuse of investment capital underscores a blatant ​disregard for trust obligations and ethical standards in the investment sector.

According to the SEC, Taing and his ​company provided false documents ​and misleading statements to investors to hide ​misappropriation. These actions not only violated trust, but also ​violated several provisions of the Securities Act ​of 1933 and the Securities Change Act of 1934. The purpose of the SEC’s ​request is to obtain judicial redress, mismanagement of the ill-fated profits and civil sanctions against Taing and Touzi Capital.

This case highlights the ​SEC’s continued commitment to protect investors from fraud and hold perpetrators accountable. Gurbir S. Grewal, Director of the Implementation Division of ESA, ​stressed the ​importance of integrity in ​financial ​markets, saying: “The appropriation of investor funds and the deceit of customers erode the confidence that is essential to the functioning ​of our markets. SEC will continue to prosecute individuals and entities who commit such misconduct

Investors are encouraged to exercise due diligence ​and be vigilant when assessing investment opportunities, particularly those that promise exceptionally high ​returns at minimum risk. The SEC provides ​resources and tools to help investors ​make informed decisions and encourages ​the public to report suspicious investment activities.

The outcome of this case will be a critical indicator of ESA’s implementation ​strategies and their commitment to maintaining market integrity. As procedures are developed, the financial community will closely ​monitor the impact on regulatory ​practices and investor protection measures.