Complaint Review: EFT HOLDINGS - Internet

VISMAN CHOW - Former Chief Lending Officer and Director of UNIVERSAL BANK, West Covina CA now involved in a Case concerning Orchestrating Fraudulent Pyramid Scheme with EFT Holdings (Case No. 2:13-cv-08832-DSF-CW (C.D. Cal., November 27, 2013).

2 Cases have been lodged :  

2:13-cv-08832-DSF-CW (C.D. Cal., November 27, 2013) & a potential Class Action case.

Summary 

Shuxin Li, Yongpu Cheng, Miaozhou Zhu, and Zhanyuan Tong, on Behalf of Themselves and All Others Similarly Situated v. Jack J.

Qin: individually and as President, Chief Executive Officer and Chairman of the Board of Directors of EFT Holdings, Inc., EFT

Holdings Inc., Visman Chow, Norman Ko, William Sluss, Pyng Soon, Case No. 2:13-cv-08832-DSF-CW (C.D. Cal., November 27, 2013) alleges that the Defendants have orchestrated a fraudulent pyramid scheme pursuant to which the Plaintiffs and tens of thousands of other Chinese and American consumers paid the Defendants tens of millions of dollars in United States' currency in exchange for the right to purchase nutritional supplements and other products and obtain an ownership interest in EFT.

Jack J. Qin promised them that the value of their ownership interests in EFT would increase substantially over time as company sales increased, the Plaintiffs allege.  They contend that a key, but unspoken part, of the Defendants' scheme was that in order for the Plaintiffs to realize the promised lucrative rewards from their EFT investments, they had to recruit others to purchase EFT's products and ownership interests in the company.

EFT is a publicly-traded Nevada Corporation headquartered in City of Industry, California.  EFT, through its subsidiaries, engages in the merchandising and sale of EFT-brand products over the Internet.  The Individual Defendants are directors and officers of the Company.

The Plaintiffs are represented by:

          Ronie M. Schmelz, Esq.

          EDWARDS WILDMAN PALMER LLP

          1901 Avenue of the Stars, Suite 1700

          Los Angeles, CA 90067

          Telephone: (310) 860-8700

          Facsimile: (310) 860-3800

          E-mail: [email protected]

 EFT HOLDINGS: Faces 2nd "Li" Suit Over Fraudulent Pyramid Scheme

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Shuxin Li and Julia Leung on Behalf of Themselves and All Others Similarly Situated v. EFT Holdings Inc., a Nevada Corporation, Jack J. Qin, and Dies 1-10, Case No. 2:13-cv-08835-BRO-E (C.D. Cal., November 27, 2013) is a class action against EFT Holdings, Inc. and its founder, Jack J. Qin for orchestrating a fraudulent pyramid scheme pursuant to which the Plaintiffs and tens of thousands of other Chinese and American consumers paid the Defendants tens of millions of dollars in United States' currency in exchange for the right to purchase nutritional supplements and other products and obtain an ownership interests in EFT.

The Defendants' entire business model was based on the recruitment of unsuspecting consumers, who were promised the highest quality products and an ownership interest in a vibrant, growing, and legitimate company if they purchased EFT products, rather than on actual sales of EFT products to consumers, the Plaintiffs contend.

EFT is a publicly-traded Nevada Corporation headquartered in City of Industry, California.  EFT, through its subsidiaries, engages in the merchandising and sale of EFT-brand products over the Internet.  Mr. Qin is a California resident, who founded EFT in 1998 and, since its inception, has served as the Company's Chief Executive Officer, President, and Chairman of the Board.  The true names and capacities of the Doe Defendants are currently unknown to the Plaintiffs.

The Plaintiffs are represented by:

          Ronie M. Schmelz, Esq.

          EDWARDS WILDMAN PALMER LLP

          1901 Avenue of the Stars, Suite 1700

          Los Angeles, CA 90067

          Telephone: (310) 860-8700

          Facsimile: (310) 860-3800

          E-mail: [email protected]