Investment scheme costs victims millions

MILWAUKEE (WITI) -- She promised high returns, but instead, she gave investors high anxiety when they lost millions! Undercover video taken by postal inspectors shows Kalin Dao -- the mastermind behind a scheme that cost more than 500 investors at least $7 million.

"She offered a number of programs -- either penny stock type investments, or investments in commodities, precious metals, things like that," U.S. Postal Inspector Robert Strande said.

Postal inspectors invested in Dao's company to learn more about her business.

"She gladly took my money, sent me regular updates, investment statements categorizing how my investment was doing," Strande said.

Those documents were all fake.

Inspector Strande traveled to Las Vegas to attend an investors meeting with Dao and brought a hidden camera. He spoke with her about the transparency of her records.

Strande: "As far as reviewing the books, how, where are you located as far as doing that or sitting down and having a one-on-one meeting?"

Dao: "Yeah, we, we can have one-on-one meeting. That no problem. But, it have to be member."

Strande: "Okay."

Dao: "You`re not a member right now. Ah, I can`t disclose that information to you."

Dao: "Okay. Well, that`s what I don`t quite understand as far as bringing on new investors, but, you`re not disclosing a lot of information to the new investors."

Dao: "We not bringing on new investor. That what we trying to tell you."

Strande: "But, I mean, if you were, I mean, how, how do you source of investors if you`re not putting out information?"

Strande says there's an important takeaway here for every potential investor.

"Don't accept answers like this is a private company, you're not entitled to look at the financials, I don't have to show you the financial records. Don't accept answers like that," Strande said.

Strande also said another potential red flag is the presentation Dao gave.

"She provided a Power Point presentation to the entire investment group and it looked as though a second grader had done the artwork," Strande said.

Postal inspectors say the victims were devastated.

"It completely wiped them out financially. Most of them did not have disposable income," Strande said.

Postal inspectors say Dao used the money to finance her lavish gambling trips to Vegas.