SEC Accuses Californian of Orchestrating $11.8 Million Ponzi Scheme

Posted on October 5th, 2023 at 10:20 AM
SEC Accuses Californian of Orchestrating $11.8 Million Ponzi Scheme

From the desk of Jim Eccleston at Eccleston Law 

The Securities and Exchange Commission (SEC) has charged Tilila Walker Sumchai of Richmond, California, with defrauding more than 1,000 retail investors, raising around $11.8 million. Sumchai's fraudulent securities offering was specifically aimed at members of the Tongan American community across the United States.

According to the SEC's complaint, from approximately January 2021 to October 2021, Sumchai deceived retail investors into purchasing shares of an investment she named "Tongi Tupe." She falsely claimed that she would utilize a secret algorithm to ensure high, guaranteed returns. The complaint alleges that Sumchai initially targeted respected leaders within the Tongan American community, who received significant investment returns.

Sumchai allegedly made promises of exceptionally high returns, such as offering a $146,000 profit within 16 weeks for a $3,000 investment. However, the complaint asserts that, in reality, Tongi Tupe did not generate any returns. Instead, Sumchai operated a Ponzi scheme, relying on funds from new investors to pay off earlier ones. Moreover, the complaint alleges Sumchai misappropriated at least $207,000 from investors for undisclosed purposes, including funding casino trips, travel, and shopping, as reported by the DIWire.

The SEC complaint charges Sumchai with violating SEC rules and seeks permanent injunctions, including one based on her conduct, disgorgement with prejudgment interest, a civil penalty, and a bar from serving as an officer or director.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next

I am grateful to have found an outstanding law firm that specializes in securities matters. My lawyers were extremely knowledgeable, diligent, and are skilled litigators. No stone was left upturned. As a result of their experience and tenacity, the arbitration proceeding was dismissed in my favor.

Michael E.

LATEST NEWS AND ARTICLES

December 2, 2025
Crypto's Leverage Shakeout Exposes Structural Risks

The crypto market’s recent downturn erased nearly $20 billion in leveraged positions within hours and half a trillion dollars in market value over a single weekend.

December 1, 2025
UBS Winds Down Funds as First Brands Bankruptcy Ripples Through Global Markets

UBS Group AG has begun liquidating two invoice finance funds with direct exposure to First Brands Group, marking one of the earliest moves by a major financial institution to contain the fallout from the bankrupt auto-parts supplier’s collapse, as reported by Bloomberg Law.

November 26, 2025
Former GWG Chair Charged in Alleged $150 Million Fraud Scheme as Investor Losses Mount

Federal prosecutors have intensified scrutiny of the long-running collapse of GWG Holdings Inc., unveiling criminal charges against Bradley Heppner, the former chair of both GWG and Beneficient.