On April 26, U.S. Attorney Ismail J. Ramsey, Internal Revenue Service Criminal Investigation (IRS-CI) Special Agent Darren Lian and FBI Special Agent Robert K. Tripp announced that a federal grand jury indicted Derek Vincent Chu, He is accused of being involved in a $39 million Ponzi scheme involving more than 100 victims.

Between late 2013 and 2020, Chu, 41, of Alamo, California, allegedly used multiple companies to fraudulently solicit investment to buy and resell professional basketball tickets and luxury suites at Oracle Arena in Oakland, California, raising $39 million. The indictment also alleges that Chu induced investors through numerous material misrepresentations, including how investor funds would be used, how investors would receive returns, and whether the investments were secured by collateral.

According to the allegations in the indictment, Chu mixed investors' money between his personal and company accounts, causing the investors' money to be used to repay other early investors, as well as other unrelated expenses. In addition, the indictment alleges that Chu misappropriated and transferred more than $7.3 million of investor funds for his own personal benefit, including payment of credit card debt; Withdraw cash; To pay for travel, luxury cars and jewelry purchases; There are utilities to pay and so on.

The indictment charges Chu with eight counts of wire fraud and three counts of money laundering.

Chu was arrested on the morning of May 2 and made an initial court appearance before U.S. Magistrate Judge Laurel Beeler in the Northern District of California. The next court appearance is set for Wednesday, May 10, 2023.