U.S. District Judge John F. Walter of the Central District of California took the action today after court-appointed receiver Krista. L. Freitag alleged Friday that the $730,000 used to purchase the San Gabriel property in March had passed through accounts linked to both Xu and his sister Sue Wang.
The buyer of the property, Xiaomei Deng, is the mother of Xu and Wang, Freitag said in court filings.
Wang is associated with an entity known as MaNa Fashion, Freitag alleged last month. She further alleged that Xu, who did not initially disclose that Wang was his sister, effectively had transferred $1 million to her in February through an entity known as ToPacific Inc. Wang likewise did not initially disclose that Xu was her brother.
Freitag now has discovered that Deng is the mother of Xu and Wang, Freitag alleged.
MaNa initially tried to wire the $730,000 on March 13 to purchase the property, but the wire was rejected, according to Frietag. One day later, on March 14, MaNa “initiated a wire in the same amount of $730,000 from MaNa Fashion’s account to Deng’s personal checking account at East West Bank . . . ” Freitag alleged.
“On the same day the $730,000 was wired to Deng, Deng transferred $700,000 of those funds” to an escrow company. She later transferred additional sums to complete the purchase of the property, Freitag alleged.
Tens and tens of thousands of MLMers appear to have joined the Ming Xu WCM777 scam, which the SEC described in March as a “worldwide” Ponzi- and pyramid scheme that had gathered tens of millions of dollars by posing as a “cloud” services business.
The WCM777 tale has been marked by a series of bizarre events, including a declaration of love to the people of Peru that was written on the letterhead of a suspended California company linked to Xu.