BULLETIN: Judge Freezes Property Owned By Mother Of WCM777 Ponzi Figure Ming Xu
BULLETIN: A federal judge has frozen real estate in California owned by the mother of accused WCM777 MLM Ponzi schemer Ming Xu.
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.
Visit the receiver’s website:
http://www.worldcapitalmarketreceivership.com/
Patrick
Quick note: The San Gabriel property appears to be the fourth Ponzi house. Plus, there was vacant raw land bought with Ponzi money, a Ponzi office lease, a Ponzi warehouse, and two Ponzi golf courses.
Patrick
Can you confirm that Phil Ming Xu was arrested entering China with a phony passport back in early March?? If you’ve noticed, his tweets stopped. Why is the SEC & Receiver not bringing this to the public’s attention??
This would be news to me, but I’ll check it out.
Yes. I’ve noticed his Tweets stopped.
If you have any source material on this, please let me know.
Thanks for stopping by.
Patrick
@The Unedited Truth — The name is too common that without photo there’s no way to ID him directly. I tried searching and the only news is Taiwan indicted local WCM players in February 2015, after breaking the group back in 2014.
http://www.appledaily.com.tw/realtimenews/article/new/20150217/561266/
@ K Chang – is it possible that mainland Chinese authorities are not required to publish or announce such arrests?
@ Patrick – I find it awful hard to believe that the U.S. authorities are not aware of Ming’s arrest and incarceration. Unlike most, I do not drink the SEC koolaid. The obvious thought is Ming’s incarceration will probably effect parts of their case. Hence, the tight lid on the news.
I contacted the SEC on Wednesday, the morning after you posted. I also contacted the receiver.
The SEC spokesperson said she’d inquire about the Xu matter; I’ll contact the SEC again today if I don’t hear back.
The receiver hasn’t responded.
Patrick
Usually they advertise such, but only the surname was published.
@ Patrick… Still no response from the Receiver or SEC??
I checked with the SEC again on Friday. There was nothing new to report. Haven’t heard back from the receiver and have been unable to confirm the report about Ming Xu.
As soon as there is a development I can nail down, I’ll report on it.
Patrick
Apparently Ming made bond but is restricted to staying in mainland China.
Patrick – both the receiver and SEC have not confirmed or even answered you in over a month?
Last time I checked with the SEC was on May 29. There was nothing new to report at that time, but I’ll check back again.
The SEC has responded to two inquiries I’ve made. I haven’t heard back from the single inquiry I made to the receiver.
As of now, I have not been able to find anything on the public record about an arrest of Ming Xu. I’ve been checking a few times per week.
The receiver’s billing notes strongly suggest the FBI is involved in the case. This may suggest a criminal investigation or perhaps a sealed indictment, but I haven’t been able to nail it down.
Patrick
Ming’s still rollin’ large –
http://blog.sina.com.cn/mingnetwork
http://www.commumerce.com
etc – the first link is his blog – I think he’s about done doing stuff in English and will make us work a little harder from here on out..