The receiver attempting to recover assets from WCM777 Ponzi scheme operated by "Phil" Ming Xu has found more money laundered by Ming Xu.
When SEC caught up with Ming Xu and his ponzi scheme in March 2014, Xu signed a plea deal and a receiver was appointed to track down all the assets for eventual return to the victims. And the receiver, Krita L. Freitag, was sure finding a lot.
Xu had at least 54 different bank accounts under a dozen different company names at different banks, alleged the SEC in its restraining order back in March 2014. And the receiver was discovering even more assets that had been distributed to what appeared to be other companies, but are actually family members and friends. One attorney and friend of Xu got a 5 million loan from Xu days before restraining order. The same attorney also claimed to have lost a 200000 (two hundred thousand dollar) cashier's check that belongs to the receiver. In yet another case, unknown people were observed removing furniture and other property from assets frozen by court order and law enforcement had to be contacted to compel return of said assets.
Then there's the story of the missing million...
A month before the SEC action, Xu transferred 1 million from his ToPacific company (part of WCM) to entity called "MaNa Fashion" owned by "Sue Wang". Receiver tried to track down this person, who can't be found, until an accountant eventually revealed Wang's email, and a subpoena was finally served via email. Two months later, Wang finally acknowledge the subpoena, but it took ANOTHER two months before receiver got the documents she wanted, which is when receiver found that Sue Wang was actually Xu's sister.
Sue Wang eventually revealed two storage sheds of cloths, estimated to be about 100000 garments. As it is uncategorized and unsorted, and quality is unknown, it is nearly worthless, and it was liquidated quickly. But where did the rest of that million dollars go?
Then receiver found where that million actually went... MaNa Fashion transferred 730000 to a Ms. Deng in March 2014, and a house was purchased in San Gabriel, CA under Deng's name.
Turns out Ms. Deng is Xu's mother.
This house has now been frozen by court order to be eventually sold off.
There may be more surprises later.