San Gabriel Valley Doctor Accused of Real Estate Swindle
The Rise and Fall of T.J. Syiau’s RAC Development
Dr. Tin-Jon "T.J." Syiau was a renowned kidney specialist with a reputation for real estate investment. For years, he ran a side company called RAC Development, which lured clients with the promise of "maximizing passive income."
The Scheme Unfolds
At gatherings hosted at a relative’s home, Syiau convinced hundreds of people to invest nearly $60 million, assuring them he would buy up homes, hotels, and distressed properties across Southern California and "flip" them for profit. By all appearances, Syiau looked the part of a successful Taiwanese American businessman. He posted photos of luxury items, including a bottle of Dom Pérignon’s Rosé Vintage 2006 champagne, and threw an Easter egg hunt for his toddler son in Maui.
The Scheme Crumbles
But when clients tried to call the company about delayed payments, they found disconnected phone lines. When they visited the Monrovia business park office, they found it dark and locked. Syiau eventually gathered his investors in a Zoom meeting and announced he was unable to repay them any of their funds. When investors demanded answers, Syiau fled the country for Taiwan, informing them he was on the run to avoid arrest.
Investors Left with Nothing
Many of Syiau’s investors are retired and elderly, and some have had to return to work after investing their entire savings or retirement funds. One 65-year-old investor, who requested anonymity, lost nearly $350,000 of her and her husband’s life savings. "I just feel so much regret," she said. "All of the savings are gone."
The Lawsuit
The doctor, his wife, and his family members have been accused of running a sophisticated Ponzi scheme that preyed on local Chinese Americans who lacked investing experience. Instead of using contributions to buy and flip properties, Syiau and his associates allegedly diverted the money for their own gain. The lawsuit claims that RAC Development simply paid claims from older clients with "sham" investment funds they collected from newer clients.
Properties and Assets
Court documents list 40 properties that Syiau allegedly told investors he had purchased, but never owned. These include single-story suburban homes, a Victorian-style hotel, and a sprawling desert spa. Although investors were led to believe the properties were generating modest returns on their investment, they were only receiving money that new investors gave to RAC.
Victims’ Stories
One woman who requested anonymity claimed she and her husband invested and lost more than $5 million over six years. Another 63-year-old investor accused Syiau of scamming her and her husband out of $1.55 million. "We started with $10,000 and then gradually, we felt more confident and we put more and more money," she said.
Conclusion
The alleged scheme has left a trail of devastation, with many victims forced to return to work or re-mortgage their homes to replace lost savings. The case serves as a cautionary tale about the importance of thoroughly researching investment opportunities and the devastating consequences of falling prey to fraud.
FAQs
- What is RAC Development?
RAC Development was a real estate investment company run by Dr. Tin-Jon "T.J." Syiau. - How much money did investors lose?
Investors lost nearly $60 million. - What is the alleged scheme?
The scheme involved diverting money from newer investors to pay off older investors, creating the illusion of a successful business. - How many properties are involved?
Forty properties are listed in court documents as allegedly purchased by Syiau but never owned. - What is the current status of the case?
The case is ongoing, with a court-appointed trustee seeking to recover the lost money and hold Syiau and his associates accountable.
