The WCM777 Receiver has secured a $72,500 settlement from Zayda Aberin and her company, ZHB International Corp. This recovery follows protracted negotiations after Aberin initially faced a $325,000 default judgment related to funds transferred by Phil Ming Xu in March 2014.

Phil Ming Xu, the WCM777 operator, transferred $750,000 to James Dantona and his company Governmental Impact in March 2014. Dantona and Governmental Impact retained $425,000. They then forwarded $325,000 to Zayda Aberin and her company, ZHB International Corp, labeling it a "finder's fee."

Dantona later reached a settlement with the Receiver. Aberin and ZHB International Group initially ignored the legal proceedings initiated against them. A default judgment for the full $325,000 was subsequently entered against both Aberin and ZHB.

After the default judgment, an attorney representing Aberin contacted the Receiver. This initiated settlement negotiations between the parties. The attorney also filed a motion to vacate the default judgment order, with an August 8 court date set for a decision.

Aberin and ZHB claimed limited financial resources during negotiations. They provided financial records to support this assertion. The Receiver independently obtained various bank records for Aberin and ZHB's accounts, spanning several years.

The Receiver's review of both sets of records found no significant assets for Aberin or ZHB, apart from a residential property. This property serves as Aberin's primary residence. Its estimated value is approximately $2.6 million, but it carries a substantial first mortgage and a line of credit. Records show the net equity stands at about $400,000. The property was not purchased with WCM777 funds.

Exactly what Aberin did with the $325,000 she received remains unclear. The Receiver attended a mediation conference with Aberin on July 14. During this session, Aberin stated her net worth was severely limited, claiming it was no greater than $100,000. ZHB International has since been dissolved and holds no value.

Based on Aberin's financial representations and the Receiver's own investigation, a settlement agreement was reached. The Receiver weighed the anticipated costs of continued litigation against the expected time and effort required for collection. A Settlement Agreement & Release, dated July 14, 2016, was executed with Aberin and ZHB, pending Court approval.

The proposed settlement amount is $72,500. This represents only 22.3% of the $325,000 in WCM777 Ponzi funds Aberin and ZHB initially received. The Receiver concluded there were no other significant recoverable assets beyond the heavily encumbered residential property. The Receiver also anticipated Aberin might claim a homestead exemption, which would further reduce the available equity.

The settlement agreement awaits final approval from the court, which is expected to vacate the default judgment order.