Founder of California WOW Xperience, Mr. Eric Levine, no fraud case found.
Investigation results found California WOW no fraud found in the matter of overseas transfers by board of directors or executives of the Company. SEC – DSI cease investigation; citing that if “Eric Levine” had in fact transferred Baht 1,700 million overseas as claimed by members it would be easy enough to trace
Mr. Thawatchai Pittayasophon, Office of the Secretary General of the Securities and Exchange Commission Thailand (SEC) disclosed that the SEC’s investigation did not yield any evidence of fraudulent acts by California WOW Xperience Pcl (CAWOW), following the auditor’s observation that the Company was having financial problems.
While the Anti-Money Laundering Office (AMLO) which has information of overseas money transfers and is tasked with investigating money routes and whether there was anything fraudulent or not. AMLO has as yet not submitted any information to the SEC.
“The SEC has investigated California WOW in consultation with the company’s auditors, and has not found any fraud. The problems that have arisen were due to the Company’s poor business performance which affected the members and they filed claims with the authorities. If the AMLO finds any additional information from investigating foreign transfer money routes, then the SEC is willing to investigate further”, said Mr. Thawatchai.
Sources in capital markets disclosed that the entitles investigating California WOW’s case ie the SEC or Department of Special Investigation (DSI) have ceased its investigations after receiving results of no fraudulent acts regarding foreign overseas transfers by the board of directors or executives of the Company. If there were any overseas money transfers amounting to Baht 1,700 million as the members claimed, it would be easy enough to trace.
As such the SEC has formed a special team; members include former police officers, to do forensic investigation into this matter but did not find any basis to the allegations made.
During the years 2010-2011, before the Company had business problems, its annual gross income was not very highly only about Baht 600-700 million. And in fact during the time the Company faced financial problems Mr. Eric Levine, as shareholder and former management, had injected personal funds to help the business survive.