Tuesday, October 29, 2013

BREAKING NEWS: WCM777 CEO Zhi Liu Linked to Vantone Stock Scam in China

Sharp-eyed fellow Internet scambusters pointed me to clues that I discovered this article dated July 2012. That Ming Xu, and his buddy Liu Zhi was a part of the Vantone fraud in China. First, some background. 

Who is Tiger Zhi Liu? He said he's head of WCM777 


He's also US head of Vantone, according to his Linkedin Profile.



What you don't know is Vantone was a huge stock fraud out of China in 2012...

To give you a short summary... Vantone, or "万通" (pronounced WangTong) was a company in Shenyang China. Locally it enticed people to buy products at vastly inflated prices by giving away alleged "virgin stock" of the company, promising people who got these "virgin stock" that they will receive HUGE profits (fifty to one hundred times what they paid for) if they keep buying up more products... if the company is successful going public in the US of A. Company was later busted as a scam, selling a water purifier for 10 times the cost, making fraudulent promises, illegally offering stocks for sale, and more. 

And Zhi Liu is the head of Vantone USA, as shown above. 


Following is a line by line translation of 

http://www.legaldaily.com.cn/index_article/content/2012-07/25/content_3728452.htm?node=5955


沈阳警方侦破非法经营股票案 7省市3200余人受骗

ShenYang Police Solved the case of Illegal Stock Investment
7 provinces affected, 3200+ people cheated

2012-07-25 11:09:32


  法制网记者 周斌
Reported by LegalDaily China reporter Bin Zhao
  时至今日,犯罪嫌疑人都已经被批捕了,辽宁沈阳人王静仍不愿完全相信,自己被骗了。"如果公安晚一点动手,或许万通公司已经在境外上市了,我买的那些原始股就赚大钱了。"她这样对《法制日报》记者说。
Even today, all of the suspects had probably been arrested, resident of Liaoning Shenyang Jing Wong still can't quite believe that she had been scammed. "If Public Security only have waited... Maybe Vantone would have issued their stock, and my 'virgin stock' would have made me lots of money." She told the Legal Daily reporter. 
  在之前9年时间里,下岗工人王静累计投入十五六万元购买沈阳万通国际集团公司的股票和产品。而在辽宁、北京、天津、黑龙江等7个省、市,和王静一样投资万通公司原始股的受骗者多达3200余名,涉案金额近2亿元。
In the past nine years, retired worker Jing Wong had invested about 150 thousand to 160 thousand Yuan (RMB) into buy ShenYang Vantone International Holdings stock and products. Furthermore, at LiaoNing, Beijing, TianJing, HeiLongJiang and 7 other provinces and cities, there are over 3200 victims like Jing Wang who was fooled by a chance to invest in "virgin stock" of Vantone. Losses could total 200 million yuan (RMB).  
  在今年全国公安机关开展的严厉打击经济犯罪"破案会战"中,在公安部统一指挥下,5月4日,辽宁等7省、市公安机关同时发起集群战役,一举将万通公司非法经营股票犯罪的网络彻底摧毁,该集团老总及7名高管和数十名代理商悉数落网。
At this year National Public Security campaign to smash economic crimes, as commanded by Public Security, operated commended on May 4th (2012) where Public Security of 7 jurisdictions raided and completely dismantled this Vantone illegal stock crime network. The head, 7 officers, and dozens of sellers were all arrested. 


原始股的诱惑
Temptation of Virgin Stock
  去年11月初,沈阳市公安局经侦支队民警接到群众举报,一家名为万通公司的企业销售产品并赠送股票。按照我国法律规定,擅自发行股票属违法行为,民警对此进行了调查。
Last November (2011) ShenYang Public Security received a tip from neighborhood militia that a company called "Vantone" (WangTong) is selling objects and giving away stocks. According to Chinese law, it is not legal to sell stocks without registration. Thus, police started investigation. 
  "经深入调查发现,该公司在全国多个省份雇佣代理商、店长,以配送'万通原始股'为诱饵,向群众高价销售保健品、净水机等产品。"沈阳市公安局经侦支队曲警官说,万通公司还对外宣称,上市后原始股回报率可翻数十倍乃至上百倍。
Office Chu of ShenYang Public Security explained, "After detailed investigation, this company had hired many representatives in multiple provinces. They are selling nutraceuticals and water purifiers, with additional bait of 'giving away virgin stock'. Vantone claimed that if the IPO was successful the profit will be tens of times, perhaps hundred times profit. 
  70岁的朱成品对《法制日报》记者坦言,自己就是被"翻百倍"所诱惑,成了万通公司的"股民",这些年先后投入5万余元。
Chenping Zhu, 70 yrs old, told the LegalDaily reporter, that he was tempted by this "100 times profit" and became investor of Vantone, and put in at least 50000 Yuan (RMB). 
  朱成品说,2003年,一位熟人向她推荐了万通原始股,说将来上市股价能翻很多倍。但获得原始股的前提是购买该公司的保健产品,购买3单至13单(每单558元),可以1元/股购买1万股原始股;购买15单至21单,买1万股赠1万股;每月购买21单前一百名,赠送5000股。
Zhu said, in 2003, a friend recommended her to buy virgin stock of Vantone, told her that if the stock is listed she'll make a lot of money back. However, to get the virgin stock, you have to buy the company products. If you buy 3 units to 13 units (at $558 Yuan RMB per unit) you can purchase virgin stock for $1 per share. If you buy 15 units to 21 units, they'll double your stock... Buy 10000, get 10000 free. The first 100 people every month to order 21 units or more gets 5000 extra shares. 
  "保健品价格不菲,一盒口服液588元。但想到产品对身体有益,关键是还能得原始股,何乐而不为呢?"朱成品说,于是她花1.2万元买了21单,获赠5000股。
"The nutraceuticals are expensive. One box of supplement is $588, but I thought it'd be good for my body, and the key is the virgin stock. Why not?" Zhu said. So she spent 12000 Yuan (RMB) and bought 21 units, and got extra 5000 shares. 
  此后,万通公司的代理商时常找到朱成品,或组织"股民"开会,一会说万通就要上市了,鼓励大家多买股票;一会说必须拉业绩上市股票才能高涨,要求大家买产品;甚至说谁不拉业绩手中的股票就不能上市。想到将来上市后原始股暴涨,朱成品又买了1万余元股票和3万多元保健产品。
After that, Vantone's reps keep coming back to Zhu, or organized "investor groups" from purchases. Sometimes they sayd Vantone is about to get listed, please buy more stock. Another time it's they need to show good sales to get the stock prices high, so buy more. They even said that if you don't buy the stock can't go public. With vast pressure and thought of profit Zhu bought another $10000 RMB of stock and 30000+ of various products. 
  朱成品买的保健产品包括竹纤维床单、硒宝片、蔬菜消毒机、生态养生锅、净水机等。其中,一台净水器的价格高达8000余元。
Zhu's purchases includes some special bed sheets, selenium tablets (supplements), vegetable sterilizer, special natural cooling pots, water purifier, etc. That water purifier costs 8000 Yuan. 
  要让群众购买如此高价的产品,万通代理商得怎样巧舌如簧?已被取保候审的代理商赵影勤如此答复记者:"贵也罢便宜也好,是净水器还是化妆品都无所谓,大家都不在乎,只期盼把业绩拉上去公司早点上市。"
What sort of verbal sorcery did Vantone reps use to convince the public to pay these vastly inflated prices? One of the reps, YingChin Zhao, explained to the reporter. It doesn't matter what they buy, at whatever price, be it water purifier or cosmetics. They just want to make sure the stock offering goes through through sales. 
  在警方扣押的物品中,记者找到了那种净水机,外观与普通饮水机没太大差别,只是下端内部安装了很多管道。万通公司曾这样宣传:把墨汁、农药倒进去过滤后能直接饮用。
In the merchandise held by police as evidence, reporter found the water purifier. Looks just like a normal purifier  but there are a lot of piping at the bottom. Vantone claimed that this purifier can purify even ink and insecticide into drinkable water. 
  "不用研究了,普通净水机而已,万通公司从南方企业买来贴标后卖,购入价只有几百元。"民警对附身下去观察的记者说。
Police explained to the reporter looking the purifier over, "There's nothing special. It's just a regular water purfiier. Vantone bought these from the South (of China) and put on their own label. Only cost them a few hundred yuan (RMB)". 
骗局步步为营
Many Layers of the Scam
  7月3日下午,记者跟随民警来到位于沈阳繁华地段的中山路195号阳光财险大厦,万通公司就在大厦第18层。
In afternoon of July 3rd (2012), reporter followed police to YuSheng district, 195 ChungSang Road Sunshine Office Building, where Vantone is located on the 18th floor. 
  整个18层都为万通公司所有,粗略估计有大几百平米。走进已被查封的万通公司,宽敞的前台两侧墙上,一幅幅该公司董事长于洪刚与中外名人的合影照片仍挂在上面。
The entire 18th floor is Vantone. That's several hundred square meters. We walked into the closed company. We can still see the various pictures of CEO Gang Hong posing with various dignitaries foreign and domestic on the walls near the front.  
  曾经,王静以及很多受害群众多次来到这个地方,留下的良好印象坚定了他们对万通公司上市的信心。
In the past, Jing Wong and other victims had came here many times, and it was this impression that made them certain that Vantone will get listed. 
  散落在桌子上的一些精美宣传册称:万通公司在境外注册,在中国设有万通源商贸有限公司、万通健康用品制造有限公司、万通小额贷款有限公司等五家公司。
Some of the brochures left scattered on a desk explaiend that Vantone will register outside of China. In China there will be five different Vantone companies, including Vantone Health products, Vantone Microloans, and so on. 
  "注册这么多公司,就是为了营造集团化、大型企业的假象,实际上,万通出售的所有产品都是从其他公司买来的。"沈阳和平公安分局经侦大队曹警官介绍说,万通公司还多次召开股东大会,请所谓国外专家讲授公司前景,场面宏大,很多受害群众深受感染。
Officer Chao of ShenYang Police explained, "Registering multiple companies is simply to look big. Vantone does not manufacture anything. All of their products are made by someone else. However, they have organized several board meetings, and invited a lot of foreign specialists to talk about the future of the company. It was really impressive, and really convinced a lot of victims. "

  在万通公司市场拓展中心,放着一摞摞合同。据了解,万通公司与很多受害群众都签订了劳务合同,并称其为公司业务员。"万通公司的原始股,都是无偿出让给自己员工和业务员的。"身在看守所的于洪刚说。
In the Vanton's marketing room, there are stacks of contracts. Apparently, Vantone made a lot of victims sign these labor contracts, so they can say they are "employed" by Vantone. "Vantone's virgin stock are given out to the employees and contractors", Gang Hong Yu said while behind bars. 
  "他这么做是想规避法律责任,合同都是在群众购买产品或原始股后签订的。"曹警官解释说,财经专业毕业的于洪刚设计的骗局非常巧妙,可谓步步为营,"很多受骗群众感觉万通公司在不断发展壮大,对其上市深信不疑,这也是这多年来警方未获得一起相关报警的原因"。
"He's trying to avoid the law. Contracts are signed after the people purchased the products or virgin stock", Office Chao explained, "Yu's scam is layers within layers. Victims were lead to really believe the company will be listing their stock and is growing stocker, which is why police never got any report until recently."
  2007年之前,于洪刚经营的是名为"帝杰"的本土公司,并配送股票;当年,他在境外购买了一家空壳公司,即"万通源商贸国际控股有限公司",然后将帝杰公司注销,把帝杰股票按比例转为万通股票,同时继续销售原始股。
Before 2007, Yu's company is caleld DiJie, with stock offering. Years later, he purchased a shell company called Vantone International Holdings outside (of China), closed DiJie, converted DiJie stocks to Vantone stock, and continue to offer "virgin stock". 
  2009年5月,万通公司在较美国纳斯达克层次低很多的OTCBB市场"上柜",标价0.2美元,代码为VNTI。万通公司对外宣称已在境外上市,上纳斯达克指日可待。在继续配送股票的同时以每股10.5元直接销售。
In May 2009, Vantone was listed in OTCBB, with price of $0.20 USD (20 cents) with symbol of VNTI. Vantone then announced that they are listed, and they will get into NASDAQ very soon, and sold stocks at $10.5 RMB. 
  "从中国股转为境外股;OTCBB市场可以通过网络查询,和股票交易系统有些相似,极具欺骗性,这些都导致群众购买热情更加高涨。"曹警官说。
Officer Chao explained further, "OTCBB can be checked through Internet (in China), and at first glance does look like regular stock market, and this is extremely misleading. This lead to further investor fever."
  据警方介绍,OTCBB只是报价系统,只要在当地注册的公司,提供财务报表,不管该公司财务状况如何,都可以在该系统挂牌。在OTCBB挂牌的企业到主板上市与其他没有挂牌的企业所需条件并无差异。
Police explained that OTCBB is just a price reporting system. Any company can get listed, no matter what their financials are, as long as they are registered properly. OCTBB listing is about the same as a company that's not listed on the "main board" (i.e. various Chinese stock exchanges). 
警方除恶务尽
Police Defeat Evil and Protect Weak
  警方查明,此次受骗的3200余人中,很多为老年人;由于他们不了解金融知识、又缺乏投资渠道,大笔养老钱、看病钱被骗。
Police found that of the 3200+ victims, any are seniors. They don't understand the financial market, and lack investment venues, and thus much of retirement savings and health savings are now gone. 
  让人哭笑不得的是,当记者请几位受访的受骗群众拿出原始股凭证时,他们却一致摇头说没有,"我们的原始股数量都是代理商帮忙统计后,汇总到万通公司,现在万通公司电脑里应该有记录"。
Even sadder revelation was when the reporter asked various victims do they have any record of these virgin stocks they purcahsed, they all said no. "Our virgin stock was all tallied by the distributor, Vantone should have records."
  让人尤为气愤的是,万通公司下设的小额贷款公司,将从群众中骗取的钱再贷给群众,要求他们购买万通销售的高价产品。如贷款不能及时归还,则以没收原股票相要挟,导致很多人向亲朋好友借钱。
What's really demented is Vantone also operates a microloan business, that loans the money scammed from victims back out to the victims, with the threat of "canceling the virgin stocks already purchased" if they don't pay up, forcing many victims to sink further into debt by borrowing from friends and neighbors. 
  警方称,本案涉案金额2亿元,于洪刚通过万通公司最终获利近亿元。"钱都用于经营了。"于洪刚用一句话答复记者提问,并不愿详谈这一话题。
Police revealed that this scam involved over 200 million RMB. Yu claiemd that Vantone profited about 100 million RMB. "Money was all used in operations."  Yu answered the reporter, with no further explanation. 
  "他将这些钱多数用于购买了商用房,并买路虎车为座驾。"曲警官告诉记者,万通公司高管每月能拿上万元的工资,一些代理商也开起了宝马车。
Officer Chu told the reporter, "He bought a commercial building and a Land Rover (NOTE: extremely expensive in China)". Vantone's officers can get over 10000 RMB per month. Some distributors drive BMW's. 
  为尽快侦破此案,沈阳市公安局抽调精干警力成立了专案组。由于本案涉及地域广、人员众多,案情复杂,怎么打、何时打?成为专案组面临的难题。
To bust this scam quickly, ShenYang police formed a special task force, as this is a huge operation involving plenty of people, plenty of jurisdictions, thousands of victims, and fraud within fraud. How and when to strike was the question faced by the police. 
  沈阳市公安局副局长王晓刚介绍说,专案组成立之初就定下了调查取证、抓捕嫌疑人、追缴涉案财物齐头并进的工作方法,确保在破案的同时有效防止涉案资产损失和流失,最大限度维护受害人的利益。
Deputy Chief XiaoGang Wong explaiend that their goal is to prevent asset of the victims from dissipating, while preserving evidence and catch all suspects. 
  2012年3月26日,得知主要犯罪嫌疑人于洪刚即将出境,专案组果断采取行动,赶赴机场,将其抓获,随后将李某某等7名涉案企业高管抓获。同时全力追缴涉案赃款赃物,最终扣押万通公司资产7000余万元。
On March 26, 2012, Police received word that head suspect Yu may be leaving the country. The task force decided to go ahead and start the raid, and arrested Yu at the airport, arrested 7 officers of the company, and attempted to follow all the assets of the company, and froze about 70 million RMB of Vantone assets. 
  "给于洪刚戴上手铐时,他嘟囔了一句,我知道迟早会有这么一天。"曲警官说。
"When we cuffed Yu, he muttered 'I knew this would happen'" Office Chu said. 
  "由于警方打击及时,本案的挽损率较高,群众合法权益得到了最大程度的保障。"王晓刚说。
"Because the police intervened in time, we were able to save a good percentage of victim's money," Deputy Chief Wong added. 
  法制网沈阳7月25日电
July 25th (2012) posted at LegalDaily China

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Not convinced yet? Perhaps you say this does NOT involve Ming Xu? 

Ming Xu's own "child companies" CareuX listed Vantone as a SISTER COMPANY. 

And even today, Ming Xu is still using the Vantone name. Albeit, only in CHINESE. 

His "WCM", is known in Chinese as 美国万通投资银行, which literraly translates to  "US WangTong Investment Bank"  WangTong... Vantone. SAME THING. 



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2 comments:

  1. There are so many companys named "Vantone" chek this real state vantone company http://www.vantone.com/site/enIndex i think this is a common word for the asian people

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    1. But none of them had the symbol VNTI on OTCBB.

      Vantone, which rhymes with Wangtong, is a popular "lucky" and "prosperous" Chinese name... One more reason why Mass Mutual picked it as its Chinese name... and for someone else to use that name possibly fraudulently.

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