Mahwah Woman Accused of Making Millions in Phony Investment Schemes

The president of a purported textile wholesale distributor headquartered in New Jersey has been arrested by special agents of the FBI and the U.S. Treasury Department, for allegedly defrauding investors in the United States and China of more than $10 million in investment fraud schemes.

Fifty two year old Sara Rong Liu of Mahwah is charged with wire fraud.

According to the complaint unsealed today, Liu, the president of Westone, Inc., a company purportedly involved in the wholesale distribution of textiles and interior design, falsely represented to investors that Westone had been awarded a lucrative $156 million contract by the New York City Department of Design and Construction Fund.

She allegedly created a number of fictitious contracts, emails and other documents that were sent to investors, who then gave Liu millions of dollars.

The wire fraud count carries a maximum potential penalty of 20 years in prison and a $250, 000 fine. Liu is expected to make an appearance in federal court this afternoon.