Sunday, September 13, 2015

Fox 11 News: Investors Claim Arcadia-Based Business Is Ponzi Scheme

-- Self-obsessed Mayor GemCoins still claiming it is all a political plot to get him (video link). --

The word on the streets is defrauded GemCoin investors will be in attendance at the Arcadia City Council meeting Tuesday evening. As the following Fox 11 News story relates, 10s of thousands of GemCoin investors were collectively bilked out of $160,000,000 worldwide, a massive sum of money by anyone's account. All done by an international Ponzi operation that was both run out of Arcadia and legitimized by the reassuring presence of one of Birdtown's most senior local government elected officials, Councilmember John "GemCoins" Wuo.

And this all happened while the City of Arcadia did absolutely nothing.

These horribly defrauded people want to let the City of Arcadia know how they were misled and cheated by one of its most senior leaders. The question that many of them feel must be answered: "Is the continued silence at Arcadia City Hall an act of complicity? Is the city defending John Wuo?"



The following video was prepared by Save the Arcadia Highlands. It easily lays waste to Wuo's claims that he knows nothing about GemCoins.

Video link here.

Here is my question for the day. Out of that $160 million dollars stolen from GemCoin investors, how much of it was used to build McMansions in Arcadia?

sierramadretattler.com

64 comments:

  1. Has Arcadia, California became the Ponzi Schemer's capital of California? If that be the case what else is rotten in Arcadia since this could be the tip of a giant ice berg.? Food for thought.

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    1. Arcadia has become a haven for ill-gotten gains from party officials in Communist China who know that China is about to implode and want to get their money out as fast as they can. Communist China manipulates their economy to benefit the upper echelons of those in the Party. That's a ponzi scheme too that is bound to collapse eventually. The corruption in China is unprecedented. All these factors are combining to bring down the Chinese economy. And that's just what's happening over there. Now that same corruption has been brought to the shores of America and taken root in Arcadia of all places. GemCoins is just the tip of the iceberg. and more heads are going to roll than just Wuo's.

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    2. The Chinese refer to it as "dirty money"....and alot of it has flowed into Arcadia. The City Employees have loved it because its more money for their salaries, benefits and pensions. Alot of people over there are complicit in keeping the spigot open.
      .

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    3. Development Impact Fees are a modern form of bribery in California.

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  2. Maybe the City of Arcadia should be sued as well. Its seems that John Wuo used his status as a former Mayor and City Councilman to influence people to join this ponzi scheme. Wuo should be in jail and the City of Arcadia should be responsible for some damages to these investors since Wuo did most of this as an official of the City.

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    1. I think the City of Arcadia may be culpable also if it can be shown that Wuo was operating in his official capacity as a representative of the city when he was endorsing GemCoins. He basically put the city's imprimatur behind an illegal ponzi scheme. The Rico Statute should be invoked here because this was an organized conspiracy.

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    2. I'm pretty sure there are immunities in place, so that a council member's activities are not a legal responsibility of the city.

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    3. Not if the City new about it. Cities get sued all the time. Look at the 6.5 million dollar payout to the family of Freddie Gray. Granted maybe nobody died here, but people's lives have been ruined.

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  3. Key people must have known this was going on. Why did the story have to be broken by blogs?

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    1. The more this investigation continues the more people were be brought down by this. The corruption extends from China to Arcadia and right into the council chambers. You wait and see. People are going to get indicted on this and go to jail and it may surprise us to find out who was all involved in this scam.

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    2. I wonder if any city employees like the City Manager was involved in this?

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    3. The city mngr did scare off the LA News Group.

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    4. The city manager has to try and downplay this, whatever it turns out to be. His job is to talk about what a great place the town is, and keep the lights on.

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    5. That is hard to do when his own personal lights are so obviously turned off.

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    6. The City Manager looked the other way as did others. There's going to be hell to pay when the whole story is told and the whole story will be told once the FBI completes their investigation.

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    7. Greed did them in. They got into bed with organized crime and woke up with fleas.

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  4. Let's see if Wuo has the courage to come to that City Council meeting on Tuesday and face the people that he cheated. He should be taken to the town square and flogged at noontime.

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    1. I'm betting that Wuo won't show up to face the music here. He's going to duck the meeting on Tuesday.

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    2. Somebody needs to show up in a chicken suit with Wuo's name on it.

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  5. Wuo was right there in the thick of things. He was a spokesperson, he was in their advertising, he was part of the company with Steve Chen, it goes on and on. He professes now that he doesn't know anything about it. What a liar! I hope the FBI nail this guy if the people he cheated don't get to him first. Can you imagine losing your life savings to this guy while he continues to live in luxury. He will soon be trading his mansion for a 8 X 6 jail cell and those fancy clothes for an orange jump suit.

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  6. Blogs are what honest citizens need and they are their best friend, to many low life politicians and crooks aka one in the same have employed and controlled other forms of media to polish up and hid their true intentions. So we have a form of Watch-Dog militia but in a Blog format love it don't you? Keep reporting no matter how small it all adds up for investigative material.

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  7. It would be nice if people closer to the office could swing by occasionally and snap a photo or two to see if anything is going on.

    I'm thinking they are taking the time between now and the press conference to shred files and pack up the office.

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    1. The FBI is on to them. If they are shredding evidence, that it and of itself is a crime. Its called obstruction of justice.

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  8. I think things are becoming pretty hot for Mr. Wuo. I also think that he is a flight risk. The FBI needs to put him in manacles right away before he gets away.

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  9. The best entertainment anywhere will be available Tuesday evening at Arcadia City Hall. Don't miss it!

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    1. Arcadia has its own streaming service. Here's the link:
      http://spectrumstream.com/streaming/arcadia/live.cfm

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  10. What is that little gold badge Steve "The Human Amber Mine" Chen is wearing? Looks like the kind of thing cops hand out to kids at 4th of July parades.

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  11. On that one video, Wuo said he doesn't know anything about the company even though he has attended GemCoins events and lended the weight of his status as a former Mayor and City Councilman behind the company. And now he says he doesn't know anything about the company. Follow the money. Steve Chen and John Wuo are joined at the hip. I suspect that the more the FBI investigates this relationship, the seedier it will become. Thanks Tattler for following this story. Corruption needs to be exposed wherever it is found even if it leads into the City Council chambers of Arcadia.

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    1. Yes, Mr. Wuo's considered defense is to say "Nu-uh."
      Wonder how much that bit of legal strategy cost him?

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  12. If Wuo is arrested and force to resign the Arcadia City Council mansionization and the developers who love it will have suffered a big loss.

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    1. Good point. I just added this question at the bottom of today's post:

      "Here is my question for the day. Out of that $160 million dollars stolen from GemCoin investors, how much of it was invested in building McMansions in Arcadia?"

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    2. 7:26, as long as the building codes and zoning stay as they are now, mansionization will continue.

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    3. Once Wuo is tossed of thr City Council those other things will start to fall into place.

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    4. I'd like to know what John Wuo owns. I'm sure he's busy obscuring his ownership in case he loses a civil suit or has to pay restitution to the victims of his criminal activity.

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    5. 1:28, with Chandler as Mayor?

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  13. It looks to me like Arcadia was taken over by organized crime. Attracted by all the money to be made there in real estate.

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  14. Why aren't the developers and the Arcadia Association of Realtors coming to the rescue of John Wuo? Where's Chip Ahlswede and his PR machine? Can't they blame this ponzi scheme and Wuo's involvement on the Save The Arcadia Highlands group?

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    1. Why is the Pasadena Star News not reporting the USFIA ponzi scheme story>?

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    2. Ahlsweetie will tell you it's a process.

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    3. This is all way beyond the humble skill set of Chip. You get him much beyond Facebook and fatty lunches with Realtors and he is lost.

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    4. The Star News is usually pretty good about corruption issues. I imagine some stories will start coming out pretty soon. They need to assign a reporter to this story. It now has some legs.

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    5. We all know it's the Highlands group feeding everything to the news outlets and they've finally hit their jackpot.

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    6. The Star News got a no no from the City Manager remember? They aren't allowed to write anything bad about the City of Arcadia.

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  15. Why does John's name end up here?

    http://www.worldcapitalmarketreceivership.com/downloads/SECvWCM/2014-10-03%200215-1%20Exh%20A%20-%20AM's%201st%20Fee%20App.pdf

    Its on the top of page 12. World Capital Market was another ponzi scheme closed down by the S.E.C.

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    1. Wow. That is interesting.

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    2. Wuo's surname is rare enough that this is him. However, it's for a Fedex'ed notice by the receiver, along with a ton of other people, mostly attorneys. The one interesting name on the list next to Wuo's is "George Yipp", who's listed as "Managing Director, Los Angeles, USA" of the World Capital Market ponzi operated by Phil Ming Xu. However, there's no sign that Yipp was "heavily" involved, as Yipp is a registered CPA and may have incorporated a few of Phil Ming Xu's companies, such as Axm global.

      As Wuo was also in real estate (though he claimed to not have operated for years, right?) He may have been "involved" with a transaction with Phil Ming Xu of WCM thorugh one of his previous entities such as Golden Apple. Phil Ming Xu operated pretty much the same way as Steve Chen, registered a ton of companies, some operated somewhat legitimately, did some EB-5 investment opportunities (into his own scheme), and PMX (our nickname for him on BehindMLM) was also involved in a scam in China that was shut down and perps arrested. However, PMX had the religious angle... He's heavily involved in the local Christian scene. There's a picture of him holding a huge broadsword that we make fun of regularly as "Here's my unbeliever smitin' Jesus sword!"

      https://pbs.twimg.com/media/BZVlECTCYAEpyGY.jpg

      However, there seems to be no "direct involvement" link to John Wuo... that I can find, other than PMX also operated in SoCal. A few of PMX's entities may have been in Arcadia during John Wuo's reign, and PMX was as savvy with the media and politics as any one (he was a prime sponsor of a US China Silicon Valley conference, and got himself a selfie with Steve Wozniak and Tesla CFO... what's that guy's name?)

      In other words, I suspect low level link, I have nothing solid. Not much to pursue here, IMHO, of course.

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  16. GemCoin backed by amber mine.

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    1. Amber is communist

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    2. Bug rocks Bolshevik.

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  17. In the end it is the FBI that will have to sort this out. As it stands now Arcadia is a town with a strong organized crime element. But do the crooks also control the city government? Development industry? Arcadia Association of Realtors? Is this organized crime presence that pervasive? These are questions that a thorough FBI investigation will answer. It may be more than Wuo that ends up in Club Fed.

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  18. Wuo and Chen did not operate in a vacuum.

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  19. Its just a matter of time before there is an indictment. In exchange for a plea bargain you are also going to see some people reveal how big this conspiracy is and how it probably extends to the highest reaches of the Chinese politburo. I know the Tatler has been around for a while but have they ever contributed in such a way to the potential indictment of a sitting councilman.

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    1. Maybe not for financial misdeeds, but other kinds of bad behavior? Yes and yes, and yes.

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  20. Thank you, Tattler, for your excellent reporting of what our elected officials are really doing with their free time.

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  21. Look at it this way. Elected officials prey on residents all the time for more and more tax money. It is only one small banana step to running a full on Ponzi operation. Wuo just kicked it up a notch.

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  22. Too bad. So sad. Less money for McMansions. LMAO

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  23. Reading through an earlier Tattler blog on this and following some links to links I came across a scheme to develope a Disney-like theme park featuring a 5-mile long great wall of China in the foothills above Ranch Cucamonga. I am out that way from time to time working as a volunteer for California Fish and Wildlife so I googled the project and sent the link to the head of the city planning department. He was very interested, thanked me (Thank You, Tattler!) and said he would keep an eye on this and let San Bernadino County officials know, too.

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    1. When you've ripped off a lot of trusting folks for $160 million big ones you do have a large amounts of cash for investing. One theory has it the USFIA GemCoin Ponzi scam was to raise money for SGV development projects. Thanks Caroline.

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  24. $160 million is just China alone till June 2014 reported by Chinese government. Based on insiders, the total amount of scam has reached almost $3 billion!

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    1. You could build a lot of Moron Castles with that kind of dough.

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  25. I'm pretty sure all those who need immunity are in place so says the Arcadia City Attorney and Arcadia City Manager, so that a council member's activities are not a legal responsibility of the city. But then there is the Personal side his activities so hope he does not drag the Arcadia city Attorney and Arcadia Tax Dollars into this mess he created. Good Grief Charlie Brown.

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    1. This will be a far bigger problem for the City of Arcadia than anybody there knows yet. The GemCoin victims have a smart lawyer who is class action savvy and ready to bring it on. Wuo may have single handedly caused more damage to Arcadia than anyone ever before.

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    2. Is the attorney from the Highland?

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