U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19547 / January 30, 2006
SEC v. WMDS, Inc. et al., (Civil Action No.05-12268-RCL) (D. Mass)
SEC SEEKS RECOVERY OF FUNDS FROM FORMER WIFE OF DEFENDANT IN FRAUDULENT INVESTMENT SCHEME
The Securities and Exchange Commission announced today that on January 24, 2006, it filed an amended complaint to add a relief defendant in a previously filed enforcement action in federal district court in Massachusetts.
The amended complaint names Chandy Yim, the former wife of defendant James Bunchan, as a relief defendant based on her receipt of proceeds from the alleged fraud. The alleged fraud, described in the amended complaint, involved an investment scheme in which defendants Bunchan, Seng Tan, Christian Rochon, WMDS, Inc. and One Universe Online, Inc. (1UOL) falsely promised members of the Cambodian immigrant community guaranteed monthly returns that would pass on to future generations. In fact, according to the amended complaint, the defendants were operating a fraudulent pyramid scheme and ceased making the promised payments. According to the amended complaint, Yim is a resident of Miami, Florida and was married to defendant Bunchan from 1987 to 1995. The amended complaint alleges that from at least 2001 through 2005, Yim received dozens of checks from WMDS and 1UOL totaling more than $200,000. The amended complaint further alleges that Yim has no legitimate claim to the funds, that she was unjustly enriched by her receipt of those funds, and seeks disgorgement of those amounts plus prejudgment interest.
In addition to the civil case against them, on January 5, 2006, the United States Attorney for the District of Massachusetts obtained indictments against Bunchan and Tan on eleven counts of mail fraud.