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Arcadia Officials Respond to Document Connecting Councilman with Gemcoin CEO

gem.jpg
By Joe Taglieri

Arcadia Council Member John Wuo on Wednesday denied having a connection to an active company involving the founder of a controversial cryptocurrency known as Gemcoin.

Though he declined requests for an interview, via text messaging Wuo said he told George Klau, the CEO of Arcadia-based 24 HD Surveillance, to remove his name from documents filed with the California Secretary of State.

Wuo also indicated that Klau agreed to remove the councilman’s name and address from the company’s state filings, and that Klau was unaware of who entered Wuo’s information in the document that the Secretary of State’s office approved in March 2014 and confirms the company is currently active.
Klau could not be reached for comment.

The “statement of information” document surfaced at the Arcadia City Council meeting Tuesday when resident David Arvizu referenced it in his presentation during the conclave’s public comments segment.

The document lists Wuo and two Arcadia businessmen as principals in the limited liability corporation that purports to sell security camera systems. Steve Chen is the head of USFIA Inc. and Alliance Financial Group, which are the parent companies behind the Gemcoin virtual currency. Solomon Sakurada, who also goes by the name Solomon Yang, also has ties to Gemcoin, Chen and Wuo through the U.S. China Consultation Association, or UCCA.

The document shows 24 HD Surveillance’s address to be 135 E. Live Oak Ave., which is the same Arcadia address for Chen’s companies and UCCA.

Wuo was traveling out of state and did not attend the council meeting.

In a text message Wuo noted that connections he may have to Chen and Gemcoin “[do] not have anything to do with city business.”

In a late-June interview with Arcadia Weekly Wuo downplayed his connections to Chen, Gemcoin and the assortment of Chen-affiliated entities based at the Live Oak Avenue office complex. Wuo denied having ongoing financial ties or business relationships with Chen, claiming in the past he only did real estate consulting for the entrepreneur.

City Manager Dominic Lazzaretto would not comment on Wuo’s affiliation with Chen or Gemcoin but he did explain the city’s stance on the investment product, which in recent weeks has drawn vocal criticism from investors who claim to have been swindled.

On Aug. 28 a Chinese-language newspaper reported that a sizable group of protesters showed up at a USFIA event in Ontario.

“The City Attorney, Police Chief, and I regularly review all concerns related to the GemCoin issue,” Lazzaretto said via email. “To date, we have not discovered any direct evidence of criminal activity associated with the Arcadia-based company, nor has the Police Department received any reports of fraud or other illegal activity associated with the business. Anyone with specific information of criminal activity associated with this business, or any other business in the City of Arcadia, is encouraged to contact the Arcadia Police Department to file a police report so the matter can be promptly investigated.”

September 4, 2015

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5 COMMENTS ON THIS POST To “Arcadia Officials Respond to Document Connecting Councilman with Gemcoin CEO”

  1. Ku says:

    This is good news, if we lose money, we will add city hall in the law suit since we join by the advice of city hall?

  2. well says:

    以下美国美国之音报道
    http://www.voachinese.com/content/fraud-shadows-20150901/2940433.html

    美国证券交易委员会起诉路凯国际集团涉嫌“庞氏”诈欺后,联邦大陪审团上周末指控五名华裔涉嫌“金字塔骗局”,与此同时,十多名声称被骗的投资者上周末在一家投资公司的会场外举牌抗议。

    洛杉矶联邦检察官办公室上周末发布消息说,联邦大陪审团对五名涉嫌参与传销骗局的被告,提出14项罪名的起诉,起诉书指出,被告表面上通过一家提供孩童教育课程的公司吸收三千万美元的资金,实际上却是一个“金字塔骗局”,利用吸收新投资者带来收入。

    集团总裁陈立是抗议的对象(参与大会者提供)
    起诉书还声称被告做出不实承诺,包括可通过贩卖课程来创造可观的收入、投资可迅速兑现为大量盈利,还声称公司将很快上市。事实上,投资者可以赚取相当回报的 途径只有一个,那就是积极吸收新的投资者。受害者之一的华人金融业者杰森接受美国之音采访,他回忆当时被朋友游说:“你们花一万多块钱买十份,还给我们看 小孩的书,说他们在深圳有点,在大陆什么地方都开了点。”

    主攻华人市场

    起诉书指出,被告通过Youtube的录像和因特网来为公司宣传,还为潜在的投资者开说明会,他们主要从洛杉矶、旧金山和纽约的华人社区吸收新的投资者,吸收资金三千万美元,他们为自己保留650万美元,其他则转移给涉及骗局的他人。检察官声称有一千多人投资给CKB公司。

    五名被告的姓氏分别是张、陈、李、郭、林。看来都是华人,有的是台湾居民。姓林的被告九月四日过堂,他被收押,不得保释。其他被告随后一周过堂,这四人在缴纳25万到50万美元不等的保释金之后,已经获释。

    根本无法上市

    根据调查,被告等人从2011年春天开始,跟香港的CKB公司(也称CKB168)做生意,一直营运到去年。他们吸收资金,以1380美元为一个单位,投资者可获得价值750美元的奖励点数,这个点数还会增值,相当于公司的股份。然而,起诉书指出这些关于投资的承诺是骗局。投资者无法从奖励点数获得利润,他们只能靠招收新投资者获利。CKB公司没有向美国证券交易委员会注册,该公司根本无法上市,因为他们没有足够的合法收入来支持上市。

    起诉书还指称,当美国证交会向被告提出民事诉讼后,他们试图防止证交会取得相关文件,以隐瞒诈欺证据。其中姓林的被告还涉嫌威胁她过去吸收的投资者,继续向他们收钱,并要求他们不得报案。

    如果他们被定罪,串谋罪的刑期为五年,十三项诈欺罪每项最高为20年。本案由联邦调查局负责调查。

    富豪集团大会场外示威

    美国富豪集团场面(参与大会者提供)
    在CKB案公开起诉的同时,总部设在洛杉矶的美国富豪集团(USFIA)正在洛杉矶县的安大略会议中心举行世界代表大会,根据官方网站的介绍,这个集团是由中美政治协商促进会和美国联盟投资集团联合发起,经营宝石开采和加工,通过电子商务和加盟提供琥珀产品。

    据称有上千人出席大会,然而在会场外面却出现了十多个声称遭到庞氏诈欺的被害者,他们拉开横幅,指控富豪集团及其总裁陈立诈骗,要求退还他们投下的资金。大会可能因此转移阵地。抗议者在三天会期不断跟踪,但示威地点往往离会场很远。

    投资暴利诱人

    示威代表刘因全接受采访(示威者提供)
    抗议代表刘因全表示,2013年,他通过朋友认识了美洲矿业的老板陈立,他和家人购买了35万美元的unit(股份)。刘因全说:“他当时承诺我们买35万美元unit,每年每个月都要涨,在它上市前后,会涨到64倍。”

    刘因全说,陈立说公司半年上市,“它现在已经两年了,也没有上市,第二个问题,即使不上市,这个unit,后来的珍宝币,也可以买卖,但到现在我们一分钱也不能买卖。”

    刘因全表示,他买的是一张废纸。他说:“我们就是想要告诉这些同胞们,不要再上当了,这是一个庞氏骗局。”

    维吾尔青年

    声称受害的不仅是美国华人,有一个投资人是新疆维吾尔族的妇女,她今年初来洛杉矶领取琥珀,然后和儿子迈克尔一起拿到市场估价。

    迈克尔说,:“我妈妈当时投了一万六千多美金,结果到市场一看,重量和质量都差不多的东西,结果一看是五六十美金。”

    他们赶回美洲矿业公司理论,对方不跟他们谈琥珀。

    迈克尔说:“然后跟我们说,你介绍给朋友或家人,我们可以送你奖金,还可以送名车,做的更好的话,可以送你房子,还可以办户口,绿卡就是。”

    迈克尔回家上网做了研究,才发现美洲矿业在中国进行传销,已经被取缔。他星期六开了一个半小时汽车赶去抗议。迈克尔说:“中国同胞不能再让他们受到欺骗,用我们的血的教训来给别人、这些同胞很好的警惕。”

    在CKB案遭到起诉前一个月,美国证券交易委员会在旧金山控诉美国路凯国际能源集团和该集团的总裁杨冰清操作庞氏骗局,路凯后来宣布破产。

    刘龙珠:美国梦 中国噩梦

    这个案件的受害人多数是美国的华人,少数是中国的投资者,为本案40多名投资人提出集体诉讼的洛杉矶律师刘龙珠,也曾为CKB案和美洲矿业案的被害人提供过咨询,他根据对这三个案件所做的通盘观察,写出一份题为“美国梦,中国噩梦”的研究报告。

    律师刘龙珠及其研究报告(美国之音国符拍摄)
    刘龙珠指出华人投资者基本的共通之处:“第一点,华人投资不是理性投资,而是感性投资,朋友请你吃个饭,跟你打声招呼,你就变成受害者。”

    中国改革开放后,热钱在找出路。刘龙珠说:“第二,中国人有闲钱,又不甘于赚点小钱,要赚大钱,刚好成为牺牲品。”

    名流站台效应

    其次是华人崇拜权威。刘龙珠说:“这些骗子的作法都是拉大旗、作虎皮,找名人来站台。”

    名流相片刊登宣传品(示威者提供)
    在一份中美政治协商促进会的宣传品上,印刷了杨白冰儿子所罗门杨、洛杉矶县亚凯迪亚市前市长鄂志超、相声名家姜昆和陈立等人的照片,尽管鄂志超通过当地媒体宣称自己被利用,但对华人的名人效应已发生。

    投资者莫麦克不仅投资了美洲矿业,也买了CKB的股份,是双料受害者,他总结自己的经验说:“一概不碰,他们都是说的天花乱坠,中国人的贫穷的贫和贪心的贪哪,差一点儿,这两个字长相特别像,就因为贪心所以变成贫穷。”

    刘因全和其他受害者已经委托律师向洛杉矶联邦法院控诉美洲矿业的陈立等人“具有黑社会性质的诈骗团伙”罪嫌,要求赔偿投资额三倍以及损失的奖金和酬劳。

    美国之音记者过去三天几度致电陈立,并留言要求做出相应评论,但都没有得到任何回应。

    根据可靠的消息来源,美国执法单位正在对本案进行调查。

    After the US Securities and Exchange Commission sued road Kai International Group alleged “Ponzi” fraud, a federal grand jury last week accused five Chinese suspected of “pyramid schemes”, meanwhile, claimed that more than a dozen investors cheated last weekend an investment company placards to protest outside the meeting.

    Los Angeles federal prosecutor’s office announced that at the weekend, a federal grand jury against five defendants allegedly involved in pyramid selling scam, sue 14 counts of the indictment noted that the defendant surface provides child education programs, a company absorbed by three thousand million in funding, but it is actually a “pyramid scam”, using new investors to absorb revenue.

    Group President Chen is the object of the protest (involvement of the General Assembly to provide)
    The indictment also claims that the defendants made false promises include to create substantial income from the sale of programs, the investment can be quickly cashed the substantial profits, also claimed that the company will soon be listed. In fact, investors can earn considerable returns only one way, that is actively recruiting new investors. One of the victims of the Chinese financial industry Jason interview with VOA, he recalls being lobbied friend: “You spend a thousand dollars to buy ten copies, gave us a look at a child’s book, saying they somewhat in Shenzhen, in What parts of the continent are open points. ”

    The main Chinese market

    The indictment stated that the defendants through Youtube videos and the Internet to the company’s publicity, but also for potential investors to open briefings, mainly to absorb new investors from the Chinese community in Los Angeles, San Francisco and New York, absorbing funds thirty million US dollars, They reserved $ 6.5 million for himself, others are transferred to others involved in the scam. Prosecutors claim to have more than a thousand investment to CKB company.

    The five defendants were surname Zhang, Chen, Li, Guo Lin. It seems all ethnic Chinese, some residents of Taiwan. Xing Lin defendants arraigned Sept. 4, he was taken into custody without bail. The other defendants appear in court the following week, after the payment of the four, ranging from 250,000 to 500,000 US dollars bail, he had been released.

    Simply can not be listed

    According to the survey, the defendant and others from the spring of 2011, with CKB companies in Hong Kong (also called CKB168) business, has been operating the last year. They absorb funds to $ 1,380 a unit, investors get $ 750 bonus points, the points will be added, representing the company’s shares. However, the indictment noted that these commitments on investment scam. Investors can not profit from bonus points, they can only rely on recruiting new investors profit. CKB company is not registered with the US Securities and Exchange Commission, the company simply can not be listed because they did not have enough income to support the legitimate market.

    The indictment also alleges that when the United States accused the SEC to bring civil proceedings, they tried to prevent the SEC to obtain the relevant documents to hide evidence of fraud. Where the name is Lin defendants also allegedly threatened her uptake past investors, they continue to make money, and asked them to not be reported.

    If they are convicted, the sentence of five years for conspiracy, fraud thirteen up to 20 years for each crime. Investigation by the FBI in charge of the case.

    Regal Group of protesters outside the General Assembly

    United States Regal scene (involvement of the General Assembly to provide)
    In the case of public prosecution while CKB, headquartered in Los Angeles, United States Regal (USFIA) in Los Angeles County, Ontario Convention Center, World Congress, according to the official website of the introduction, this group is composed of the Sino-US political consultations Association and the American League Investment Group co-sponsored, gem mining and processing operations, providing amber products through e-commerce and franchisees.

    Allegedly there are thousands of people attended the meeting, however, outside the venue has appeared more than a dozen claimed to have been victim of a Ponzi scam, they opened banners, Regal Group and its president Chen accused of fraud, request a refund of their cast funds. The General Assembly may therefore move on. Protesters at the three-day session keeps track of, but the demonstrators are often very far from the venue location.

    Attractive investment profits

    Demonstrations on behalf of Liu because the whole interview (protesters supplied)
    Liu protest on behalf of the whole representation because, in 2013, he met through a friend of American mining boss Chen, he and his family purchased a $ 350,000 a unit (shares). Liu Yinchuan, said: “He was our commitment to buy a $ 350,000 unit, up year every month, before and after it listed, will rise to 64 times.”

    Liu Yin-chuan, Chen said the company six months to market, “it has been two years now, there is no market, the second question, if not the market, this unit, and later the treasure coins to be traded, but up to now we penny It can not be traded. ”

    Liu Yin-chuen, said he bought a piece of paper. He said: “We just want to tell the American people, do not be fooled, this is a Ponzi scheme.”

    Uighur Youth

    The alleged victims are not only Chinese American, who have an investment in Xinjiang Uygur women, she in Los Angeles earlier this year to collect amber, then and his son Michael got together market valuation.

    Michael said: “My mother was cast over sixteen thousand dollars, the results to the market to look, weight and quality are similar things, the result is a look at fifty or sixty dollars.”

    They back the theory of American mining companies, we do not talk with them amber.

    Michael said: “Then told us introduce you to a friend or family member, we can send you a bonus, you can also send the cars, do better, then we can send you a house, you can also do accounts, a green card is.”

    Michael home to the Internet to do research, only to find the Americas MLM mining in China, has been banned. He opened Saturday a half hours by car rush protest. Michael said: “The Chinese compatriots can not let them be deceived, with our blood to give lessons to others, these compatriots good vigilance.”

    CKB case prosecuted before the month, the US Securities and Exchange Commission complaint in San Francisco, president of the American Road Kay International Energy Group and the group’s Yang Bingqing operating a Ponzi scheme, road Kay later declared bankruptcy.

    Liu Dragon Ball: American Dream Chinese nightmare

    Most of the victims in this case are Chinese American, minority investor in China, put forward as a class action in this case more than 40 investors in Los Angeles lawyer Liu Pearl, has provided consulting to CKB case and the case of the victims of American mining, he According to the overall observation made by these three cases, the “American Dream, China Nightmare” write a research report entitled.

    Lawyer Liu Pearl and research reports (VOA national symbol shooting)
    Liu noted that Chinese investors Pearl basic common: “The first point, the Chinese investment is not a rational investment, but the emotional investment, you eat a meal with friends, say hello to you, you become a victim.”

    After China’s reform and opening up, the hot money in finding a way. Pearl Liu said: “The second, the Chinese people have the money, not willing to earn a little money to make big money, just become a victim.”

    Celebrity site effect

    Followed by the Chinese worship of authority. Pearl Liu said: “These practices are crooks pull the banner for the tiger, looking for celebrities to the site.”

    Celebrity photo published promotional materials (protesters supplied)
    A Sino-US political consultations on Promotion of promotional materials, printed Yang Yang Baibin son Solomon, Arcadia former mayor of the city of Los Angeles County, Hubei Zhi Chao, comic artists Jiang Kun and Chen et al., Photograph, although by Hubei Zhi-chao Local media claimed that they have been used, but the celebrity effect on the Chinese have occurred.

    Mo Maike investors not only to invest in the Americas mining, also bought a stake in CKB are double victims, he summed up his experience, said: “not and will not touch, they are saying the hype, the poor and the poor Chinese people greedy Which greedy, just missed, which looks very much like the word, because greed becomes so poor. ”

    Liu and other victims because the whole has commissioned a lawyer in Los Angeles federal court to charges of American mining Chen et al., “Has a mafia gang fraud” accusations, claiming three times and the loss of investment bonuses and rewards.

    VOA correspondent Chen to call several times the past three days, and a message asked to make its comments, but did not get any response.

    According to reliable sources, the US law enforcement agencies are on the case to investigate.

  3. lb says:

    Looks like they got their wish, and a whole lot more.

    Be careful what you ask for, you just may get it.

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