Accused financial fraudster dies before trial

Pang was under investigation for federal charges of evading currency reporting laws. Specifically, federal regulators accused him of falsely showing returns as coming from investments in timeshare real estate and life insurance policies for the elderly. Prosecutors allege that the Taiwanese immigrant was running a $4 billion Ponzi scheme, using new investors to satisfy the obligations to older ones.

Of course, Pang's family is out in force, claiming that he was a "loving father" and "honest businessman" and lamenting that he "had to endure such a mean-spirited assault on his character without ever having a chance to defend himself." The family maintains its belief that "Danny would have been vindicated if he had been given that opportunity."

Pang was arrested by the FBI in April after the SEC froze his assets, ordered him to surrender his passport and repatriate any assets he had overseas. He pleaded not guilty to the charges. Originally, the case was scheduled for trial next week, but it was pushed back to August 2010.

The accused and recently deceased fund manager is accused of having used the money he managed as a personal fund to support a lavish lifestyle, with $35 million going to a fleet of jets and $1 million spent to take employees on a cruise.

Yet, this was not the extent of Pang's legal troubles. He was also accused by the SEC of engaging in fraudulent securities offerings for the past half decade, mostly pulling cash from investors in Taiwan.

Pang's companies, Private Equity Management Group Inc. and Private Equity Management Group LLC, are based in Irvine, Calif.