NEWS RELEASE
OFFICE OF THE UNITED STATES ATTORNEY
SOUTHERN DISTRICT OF CALIFORNIA
San Diego, California
United States Attorney
Laura E. Duffy
Assistant U.S. Attorneys John B. Owens (619) 557-5629 or Joseph Orabona (619) 557-7736
For Immediate Release
NEWS RELEASE SUMMARY - May 16, 2011
San Diego, CA - United States Attorney Laura E. Duffy announced that today United States District
Court Judge Larry A. Burns sentenced Thanh-Viet “Jeremy” Cao, the leader of a massive Ponzi scheme, to
serve 360 months in federal prison, followed by 3 years of supervised release, ordered to pay $12,408,172.01
in restitution and to pay a $400 penalty assessment. The sentence is one of the longest white collar crime
sentences in the history of the Southern District of California. A federal jury found Cao guilty on
December 9, 2010, of conspiracy and three counts of wire fraud.
As set out in court filings and at trial, Cao was a career criminal who both defrauded and threatened
his victims with extreme violence. Cao operated a long term Ponzi scheme that claimed to invest in real
estate, mortgages, and certain financial transactions. Cao told his victims that he had a long history of
financial success and experience. In fact, Cao had a history of cheating clients, and he was fired from a job
in the financial sector for fraud and misconduct. He used the victims’ funds to pay for a $200,000 Bentley
(which he tried to armor), numerous trips to Las Vegas, the remodeling of his parents’ home, a $7,000 watch,
more than $10,000 in Louis Vuitton luggage, and other luxury items. When victims asked Cao what
happened to their investments, Cao taunted them with profanity. Cao’s victims lost their life savings,
retirement funds, and their homes. In total, Cao cheated approximately 190 victims out of more than
$10 million.
According to sentencing documents, in a separate state case a jury convicted Cao in 2009 of extortion,
making criminal threats, and carrying a loaded handgun in a public place. After the failure of one of his
business proposals, Cao repeatedly threatened to torture and kill his business partner, the partner’s wife, and
the partner’s children. Cao told the business partner that “the family” had previously “chopped up” a baby
in front of the baby’s parents, and then killed the baby’s mother. Cao also referenced an assassination and
a “fatal car accident,” all of which could befall the business partner if Cao did not receive his money. When
Cao was arrested, he possessed a loaded firearm, and body armor and other firearms were found at his
residence.
According to court documents, during the investigation law enforcement seized Cao’s Bentley
pursuant to a court order. Shortly after the Bentley was forfeited in 2008, Cao lashed out against federal and
state judges, agents, prosecutors, and others by filing a series of false liens. Cao developed a de facto “hit
list” in which he promised to obtain certain personal information of these individuals so he could ruin them
financially. A federal judge in Orange County, California, declared these false liens null and void, and a
grand jury in Las Vegas returned a separate indictment against Cao for filing these false liens, and for
engaging in yet another tax scam. That case, investigated by the Internal Revenue Service -- Criminal
Investigation, is scheduled for trial later this year. Cao remains in contempt of court in Orange County, and
has been permanently enjoined in Los Angeles from filing false tax returns.
United States Attorney Duffy stated, “Defendant Cao is a financial predator who will stop at nothing
to cheat his victims out of their life savings. He continues to show no remorse for his actions, which
destroyed the finances of many innocent and hardworking people. When law enforcement and the federal
judiciary stepped in to stop this fraud, Cao retaliated by trying to ruin their finances through the filing of false
liens. The sentence in this case demonstrates how dangerous predators like Cao can be. The United States
Attorney’s Office will continue its long tradition of eradicating such fraud from the Southern District of
California.”
U.S. Secret Service Special Agent In Charge Gregory J. Meyer stated, “The U.S. Secret Service has
more than 140 years of experience in investigating criminals like Cao, who target the stability of this
country’s financial systems and prey on innocent victims. With ongoing cooperation among investigators,
prosecutors and all our law enforcement partners, the Secret Service will continue to develop successful
investigations of complex financial crimes such as mortgage fraud, cyber intrusions and other schemes.”
DEFENDANT Case No. 10CR2217-LAB
Thanh Viet “Jeremy” Cao
SUMMARY OF CHARGES
Title 18, United States Code, Section 1349 - Conspiracy to Commit Mail and Wire Fraud
Title 18, United States Code, Section 1343 - Wire Fraud
INVESTIGATING AGENCIES
United States Secret Service
Internal Revenue Service - Criminal Investigation