11,900 Claims Received In WCM777 Ponzi/Pyramid Case; Time To File Is Running Out

wcm777In the bizarre WCM777 Ponzi- and pyramid scheme, investors may not know what has become of Ming Xu and how much the equally bizarre Joseph Global Institute reportedly once operated by Xu and a former Mafia member continues to contribute to the vomitous madness.

What is known is that about 11,900 claimants have come forward. The number is included in a Dec. 4 report filed by Krista L. Freitag, the court-appointed receiver. The deadline for filing originally was Nov. 9. But Freitag, in October, asked the court to extend the deadline in part because too few claimants had surfaced.

U.S. District Judge John F. Walter of the Central District of California extended the deadline  until Dec. 24 and empowered the receiver to take other actions “to increase the number of investor claims submitted,” according to the court docket.

The order seems to have aided the cause.

Noted Freitag in her report: “As proposed in the Receiver’s application, in addition to a reminder email blast notifying investors of the extended bar date and steps approved by the Court, the steps taken by the Receiver include opening a live telephone line for investor calls (which can be answered in six different languages), allowing investors to submit their supporting documents by mail, mailing physical notices to investors whose addresses are available from checks, and holding an in-person meeting in Los Angeles at which investors were able to submitting claims with assistance from the Receiver and her staff. As a result of these efforts, the response rate and number of claims received have increased significantly.”

As of Nov, 27, the number of claimants stood at approximately 11,900, the receiver noted.

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