Despite the WCM777 victim claims portal
opening up
a few months ago in September, the Receiver has revealed that investor response has thus far been “tepid”.

Reasons cited by the Receiver for the lack of victim claims include:

the lack of a complete or trustworthy company database

the location of many investors outside the United States

the fact that a significant number of investors gave their money to other individuals who pooled the funds with those of other investors before investing and

the issuance and trading of (Ponzi) “points”

All of which prompted the Receiver to seek an extension to the claim deadline, which is currently December 24th, 2015.

Following a number of actions by the Receiver to increase the amount of claims filed, ‘
as of November 27, 2015, approximately 11,900 claims had been received
‘.

According to the Receiver’s Seventh Interim Report, some $20.6 million dollars have thus far been recovered.

Most of the Receiver’s report is information we’ve
previously reported on
, with the exception of ongoing settlement negotiations with Phil Ming Xu’s family.

As previously reported, the Receiver has sought and attained asset freezes on three single-family homes purchased with funds transferred from ToPacific to Defendant Ming Xu’s sister, Sue Wang, their mother, Xiaomei Deng, and several interrelated persons and entities.

Sue Wang, Xioamei Deng, MaNa Fashion, and Saza Investment (“Wang Defendants”), all of whom are represented by the same counsel, have failed to (a) provide initial disclosures, (b) file a Rule 26(f) report, (c) respond to the Receiver’s discovery requests, and (d) respond in any way to either of two separate motions to compel.

Accordingly, on November 9, 2015, Magistrate Judge Wilner issued a report and recommendation that terminating sanctions be entered against the Wang Defendants.

Despite their complete lack of participation in the litigation, the Wang Defendants have participated in settlement discussions.

However, after many months, they still have not taken steps necessary to complete the settlement, including returning title to the two rental properties to Sue Wang so that a deed of trust securing the proposed settlement payment can be placed on them.

If a settlement can be reached with the Wang Parties, the Receiver will seek Court approval thereof.

Despite the plight of Phil Xu’s family being an obviously lost cause, it seems they’re determined to hold onto Xu’s Ponzi gifts for as long as possible.

Another interesting tidbit is Aeon Operating Inc, the operator of oil and gas leases Xu sunk $3.1 million dollars of stolen investor funds into, filed for bankruptcy on September 16th.

The Receiver and her counsel have been in communication with Aeon and its counsel, as well as industry consultants, to gather information about the leases and operations and evaluate options for disposing of the leases and maximizing the recovery therefrom.

Through this investigation, the Receiver has determin

🤖 Quick Answer

Why has investor response to the WCM777 claims portal been limited?
The Receiver attributed tepid response to multiple factors: absence of a complete company database, geographical dispersion of investors outside the United States, use of intermediaries pooling funds, and trading of Ponzi-scheme "points". These complications hindered victims' ability to file claims, prompting the Receiver to request deadline extension beyond December 24th, 2015.

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