D
r. Tin-Jon "T.J." Syiau, a respected kidney specialist in the San Gabriel Valley, had a secret life as a real estate investor. Through his company RAC Development, he convinced hundreds of people to invest nearly $60 million, promising to buy and flip properties across Southern California for profit. At gatherings hosted at a relative's home, Syiau touted his investment opportunities, which included homes, hotels, and distressed properties.

    Syiau's reputation as a shrewd businessman began to unravel in April last year when clients tried to contact the company about delayed payments. They found disconnected phone lines and an empty office. In a Zoom meeting, Syiau told investors he was unable to repay them, according to a lawsuit filed in U.S. Bankruptcy Court for the Central District of California. He then fled the country for Taiwan.

    Syiau's former clients are accusing him of running a sophisticated Ponzi scheme that targeted local Chinese Americans with little investing experience. Instead of using contributions to buy and flip properties, Syiau allegedly diverted the money for personal gain. Many investors, mostly retired and elderly, invested their entire savings or retirement funds into RAC Development, only to see it all disappear.

    One 65-year-old investor told The Times that she had invested nearly $350,000 of her life savings after hearing about RAC from a college roommate. When RAC gave her a $3,000 check seven months later, she thought the business was doing well. However, the lawsuit claims that RAC simply paid claims from older clients with "sham" investment funds collected from newer clients.

    The trustee has filed a petition to force RAC Development into Chapter 7 bankruptcy in an effort to recover the lost money. The trustee has also accused Syiau's wife, Erica Chen; his mother-in-law, Hui Mei "Amy" Cheng; and others of aiding and abetting fraud, breach of fiduciary duty, and negligent representation.

    Several local residents who said they were victimized by the alleged scheme reported being friendly with the family. One woman knew Syiau's mother-in-law for over two decades and trusted her enough to invest $100,000 in RAC Development after Cheng presented it as a lucrative business opportunity. The couple eventually lost more than $5 million over six years.

    Court documents list 40 properties that Syiau allegedly told investors he had purchased but never owned. Investors were led to believe the properties generated modest returns on their investment, but they only received money from new investors, encouraging them to invest even more.