A fraudster on the lam from Chile law enforcement authorities bought $1.4 million worth of property in the Virgin Islands, apparently on Sir Richard Branson’s Mosquito Island, according to the Chilean newspaper La Tercera and a complaint filed last November by the United States Securities and Exchange Commission.
Mr. Chang-Rajii, who allegedly started his fraudulent business in Chile in 2001 before branching into Miami in 2012, used $1.4 million of his ill-gotten gains to buy property in the VI, according to the SEC.
The SEC did not identify the location of that property, but Tamara Bennett, the head of media relations for Sir Richard’s firm Virgin Management Ltd., confirmed that a company owned by Mr. Chang-Rajii purchased a plot of land on Mosquito Island in 2015.
The company that Mr. Chang-Rajii used to purchase the land is now in liquidation, Ms. Bennett added.
Media reports describe Mr. Chang-Rajii and Sir Richard as friends before the Chilean was alleged to be a scam artist.
Sir Richard also promoted Mr. Chang-Rajii on his Facebook and Twitter pages, posting a link on those sites in April 2015 with the caption, “Read about how Alberto Chang-Rajii is using his success to benefit others.”
The post links to Sir Richard’s website, virgin.com, but the article about Mr. Chang-Rajii was apparently removed, as all that remains on the link is a picture of Sir Richard in a kilt with the caption, “Page not found.”
When contacted by media outlets in May 2016, Sir Richard reportedly said he was “saddened” about the news of Mr. Chang-Rajii’s allegedly fraudulent enterprise, and that “it would not be appropriate to comment until the facts become clear.”
The Beacon invited Sir Richard to comment on the recent developments with Mr. Chang-Rajii’s matter, but did not receive a response from him or Ms. Bennett on that topic.
Living in Malta
Shortly after the reports about Mr. Chang-Rajii were published, the businessman came under criminal investigation by Chilean authorities, reportedly leading to him to abandon his businesses, drain about $4 million from them, and flee to Malta.
Malta law enforcement arrested Mr. Chang-Rajii in December and attempted to extradite him to Chile, but the Maltese courts rejected the extradition request on April 7, and the alleged fraudster remains there as a free man, according to media reports from April.
Meanwhile, Mr. Chang-Rajii continues to face legal action in the US via a civil fraud complaint by the SEC against him and Onix Capital, while Onix Capital is also going through bankruptcy there.
The SEC complaint alleges that Mr. Chang-Rajii sold more than $5.7 million in promissory notes that “guaranteed” annual returns of 12 percent to 19 percent, and bilked others who were told their funds would be invested in “promising start-ups.”
“Chang and Onix Capital guaranteed returns and touted Chang’s wealth and investment success to entice investors,” said Eric I. Bustillo, the director of the SEC’s Miami Regional Office. “However, Onix’s purported investment revenue was non-existent and Chang’s claims about his background were not true.”
The SEC’s case against Onix and Mr. Chang-Rajii is ongoing.
VI-registered companies
Mr. Chang-Rajii also had two VI-registered companies, G Personal Portfolio and Grupo Arcano Inc., which allegedly helped facilitate his scam, though in what capacity is not clear.
The SEC does not mention the use of VI-based entities, but liquidation applications filed for each company by the law firm Walkers in the Commercial Court state that “the applicant believes that the company has been used as a vehicle for a scheme of fraud perpetrated by one Alberto Chang-Rajii.”
The Commercial Court granted Walkers’ applications — which the Beacon obtained via the financial services news website Offshore Alert — on May 4, appointing the asset-recovery firm Grant Thornton to serve as the companies’ liquidator.
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