Feds charge Filipina in Texas with wire fraud for Ponzi scheme
Nemelee Liwanag Jiao stands accused of defrauding up to 35 people.
DALLAS, Texas —A federal grand jury here indicted a Filipino American woman on two counts of wire fraud for orchestrating a Ponzi scheme that cost at least 35 investors more than $1 million, announced the U.S. Attorney of the Northern District of Texas.
Nemelee Liwanag Jiao, 47, of Irving, Texas, made her first appearance last week before a U.S. magistrate, who ordered her to surrender her passport and released her on bond pending trial. US Attorney John Parker announced the indictment.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty for wire fraud is 20 years in federal prison and a $250,000 fine.
The indictment charged that beginning in February 2009 and through September 2016, Jiao devised a scheme to get investors in promissory notes purportedly issued by Shepherd’s Light Learning Center and Lord of Peace Learning Center, two non-profit schools in the Philippines. But Jiao used the invested funds for her personal benefit. She raised at least $1,000,000 from at least 35 investors.
Nemelee Liwanag Jiao
Jiao allegedly told investors that she was a representative of Shepherd’s Light and Lord of Peace and offered investment contracts, also known as promissory notes, to investors. She falsely promised rates of return of 10 to 100 percent on investments.
Jiao also allegedly promised repayment of principal and interest within 30 days to one year following the investment. Many of the contracts were notarized to make them appear legitimate. Jiao then directed investors to write checks and wire funds to bank accounts controlled by her. She used the investors’ funds for her own benefit, including a country club membership and personal expenses.
The indictment includes a forfeiture allegation that would require Jiao, upon conviction, to forfeit proceeds traceable to the offense.
If you believe you were the victim of criminal fraud committed by Nemelee Liwanag Jiao, contact the FBI at 972-559-5000.
The Federal Bureau of Investigation is in charge of the investigation. Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
