Danny Pang — the California-based CEO of PEM group who was accused by the SEC of fraud yesterday and who is suspected of lying about his employment history and schooling, and possibly having his wife murdered by an “elegantly dressed” stranger — was arrested by the FBI yesterday. Despite a previous report by The Wall Street Journal, which indicated Pang was on a “religious pilgrimage” to China (upon which he embarked shortly after a front-page story in the paper broke news of his alleged activities), he apparently surrendered in his lawyer’s office in California without incident. He has been charged with a fairly small-time felony — making a number of cash withdrawals just under the $10,000 limit that triggers a report to the government — but the Journal deduces this is actually a “placeholder charge” the FBI is using while they build a more elaborate case. Agents also searched his home, looking for, among other things, a safe in his bedroom reported to be stocked with “gold bullion,” according to an FBI affidavit.
Apparently, Pang told a former president at his company that “the gold bullion was there in the event something bad happened to PANG, he would have something to live off of.” Obviously, we think, he means he is planning on making a huge batch of chicken soup.
Fascinatingly, the affidavit also notes that:
Pang is never alone in the residence and is often accompanied by persons of large physical bearing.
We suspect there was an innocent explanation for that, too.