. >> danny found a member of the irvine family, whose name was morton irvine smith, to essentially serve as a front man for pem group, and they claimed in documents that he was the chairman of the holding company, that the family had a big share holding in pem group. >> narrator: irvine, which has a large taiwanese population, has a certain cachet overseas, and major taiwanese banks like standard chartered plc, hua nan, and sinopac are impressed by pang's credentials and his connections. they persuade 16,000 individual investors to pour more than $800 million into pem group. >> people would, you know, wire $20 million, $30 million, $50 million, and pem group grew from having $20 million or $40 million of investment capital from a taiwanese bank or a consortium of banks. suddenly it had $500 million or $700 million. >> narrator: and for the next few years, pang spends it like water. >> he did get rich quick -- very quickly. he owned five cars, including very fancy ones, and he lived in this gated community in newport beach. he belonged to this club. he was flying around in jets, living th