After FBI Probe, Ju Ding Inc. (Juding) Exposed As Ponzi, Feds Say; Wenxing Huang Arrested

From Twitter.

A fraudster who used “fancy cars and parties” to dupe investors has been arrested after an FBI investigation, said Eileen M. Decker, the top federal prosecutor in the Central District of California.

Wenxing Huang, 33, of San Gabriel, has been charged with money-laundering and wire fraud in an alleged Ponzi scheme that gathered at least $6.9 million. He operated a Brea-based entity known as Ju Ding Inc. Huang also is known as “Di Peng” and “Fatty,” prosecutors said.

At one point, Huang “orchestrated a Ju Ding holiday party . . . at the Long Beach Convention and Entertainment Center in which luxury items, including a Mercedes-Benz automobile were raffled off,” prosecutors said.

“Records from the facility show that the event for 2,000 people cost more than $180,000,” prosecutors said.

Ju Ding Inc. was known simply as “Juding” on Ponzi boards such as MoneyMakerGroup. The “program” also had a presence on social media such as Twitter, Facebook and YouTube. The scheme, prosecutors said, traded on false promises that investors’ “money would be used to invest in and develop technology based on graphene, which is a layer of pure carbon that is only one atom thick.”

In November 2013, BehindMLM.com reported it had observed potential links between Juding and WCM777, a scam exposed by state regulators and the SEC in 2014. WCM777 purported to be in the cloud-computing business.

A news release yesterday from Decker’s office on the Juding scheme did not reference WCM777, although the U.S. government is believed still to be investigating that “program.”

From a statement by Decker’s office (italics added):

As part of the scheme, Huang allegedly offered compensation to investors who recruited others, according to the complaint, which alleges that many investors received little, if any, return on their investments. However, approximately $2.2 million appears to have been returned to clients in what were essentially Ponzi payments.

Huang is charged with money laundering for allegedly using approximately $1.2 million in investor funds to purchase the Diamond Bar home, which has since been sold.