Once hailed as a "trading prodigy," Chinese-American entrepreneur Mica Tan has recently been exposed for alleged illegal fundraising and is suspected of fleeing to the United States. Her founded MFT Group is facing a Ponzi scheme investigation, causing strong concern among investors, and the Philippine regulatory authorities have also urgently intervened.
Legendary Start: Young Chinese-American Businesswoman Once Adorned with Halo
In 2017, at just 27 years old, Mica Tan frequently appeared on financial shows, winning a lot of attention with her precocious story of "stock trading at 13, forex trading at 15." Her business experience was shaped into a "counterattack model," with a stable family background and a glamorous image. Her MFT Group ventured into medical, financial, food, and other sectors, and held corporate events in high-end venues. She was even nominated for Ernst & Young's "Entrepreneur of the Year."
Early Signs of Financial Breakdown, Investors Begin to Question
As early as 2022, investors reported that checks issued by MFT began to bounce, and payments were not timely. Despite the company repeatedly using the "pandemic" as an excuse and proposing a "five-year repayment" plan, many people continued to invest. The group's financing methods often involved introductions by acquaintances, promising annual returns of 12% to 18%, with investment thresholds often reaching millions of pesos, attracting middle-class and wealthy families to follow suit.
SEC Steps In: MFT and Executives Accused of Illegal Fundraising, Financial Fraud
On April 22, 2024, the Philippine Securities and Exchange Commission (SEC) filed criminal charges against MFT and its subsidiary Foundry Ventures, accusing their operational structure of having typical characteristics of a Ponzi scheme, and noting that the company relied on continuously absorbing new investor funds to maintain operations. Additionally, 20 executives are suspected of falsifying financial reports from 2018 to 2021, involving at least 17 instances of fraud.
The globally renowned accounting firm PricewaterhouseCoopers (PwC) was also listed as a defendant, although PwC claimed to only audit MFT Group, the incident still heavily impacted investor confidence.
"Private Lending" Claim Questioned, Response Ineffective
Facing accusations, MFT claimed that their actions were private loans, not securities transactions. However, external doubts about their operation's large scale, involving numerous people, using investment manuals, promising high interest rates, and organizing high-end events to attract customers, suggest that their actions have long exceeded the scope of private lending.
Although MFT tried to continue to reassure investors, claiming a willingness to repay, legal proceedings have fully commenced.
Fugitive Suspicions: "Failed Delivery" of Arrest Warrant Causes Shock
On June 4, Philippine media exploded with news that Mica Tan had recently left the country, suspected of fleeing to the United States to evade accountability. Previously, police attempts to deliver an arrest warrant failed twice, causing high public attention to rumors of her "running away." Investors generally worry that the so-called "repayment plan" has become empty talk.
Persona Packaged as a "High-End Scam" Cover-Up
Compared to traditional Ponzi schemes that primarily use "high interest temptations," today's financial frauds often leverage "elite personas" and "trust marketing." Mica Tan's public image—beautiful, professional, charitable, media exposure—is precisely the key means by which she gains trust, making many middle-class individuals let down their guard.
Currently, Philippine authorities have launched a comprehensive investigation into the case, and whether Mica Tan has indeed fled remains unconfirmed by official sources. However, this turmoil is enough to trigger collective reflection among the middle-class investment community.
As someone commented: "If you made so much money in the Philippines, would you choose to leave to avoid becoming the next victim?" This financial scam may well be the final chapter of her "prodigy life."
