The business and its owner, Deidre Peak, are now part of an investigation by the Colorado Springs Police Department's (CSPD) Financial Crimes Unit, which is looking into allegations of fraud at Sweet Addict Bakery.

Fairy was founded in 1983 by Tan's siblings, Tan Ah Kiang and Tan Kooi Hwak. The early starting of the operation was started at No. 66, Jalan Ibrahin, Sungai Petani, Kedah under the name Fairy Cake House.