SEC v. CKB168 Holdings Ltd., et al. Case No. 13-cv-05584-RRM-RLM (E.D.N.Y.)
Sept. 1, 2022
On October 9, 2013, the Commission filed a complaint against CKB168 Holdings Ltd.(“CKB”), WIN168 Biz Solutions Ltd. (“WIN”), CKB168 Ltd. (“CKB168”), CKB168 Biz Solution, Inc. (“Biz Solution”), Cyber Kids Best Education Ltd.(“Cyber Kids”), Rayla Melcher Santos (“Santos”), Hung Wai Shern (“Shern”), Rui Ling Leung (“Leung”), Daliang Guo (“Guo”), Yao Lin (“Lin”), Chih Hsuan Lin (“Kiki Lin”), Wen Chen Hwang (a/k/a "Wendy Lee") (“Wendy Lee”), Toni Tong Chen (“Chen”), Cheongwha Chang (“Chang”), Joan Congyi Ma (Ma”), and Heidi Mao Liu (“Liu”) (collectively, “Defendants”), and Rosanna LS Inc. (“Rosanna”), USA Trade Group, Inc. (“USA Trade”), Ouni International Trading, Inc. (“Ouni”), E Stock Club Corp. (“E Stock”), EZ Stock Club Corp. (“EZ Stock”), HTC Consulting LLC (“HTC”), and Arcadia Business Consulting, Inc. (“Arcadia”) (collectively, “Relief Defendants”). The complaint alleged that, from 2012 to 2013, the Defendants violated antifraud and registration provisions of the federal securities laws by orchestrating and promoting a pyramid scheme and offering fraud. See Complaint.
On June 29, 2016, Chen, Chang, HTC, and Arcadia were ordered to pay a total of $2,101,949.81 in disgorgement and prejudgment interest. The Commission was ordered to hold all funds, together with interest and income earned thereon (collectively, the “Fund”), pending further order of the Court. See Chang, HTC, and Arcadia’s Final Judgment and Chen’s Final Judgment.
On September 27, 2017, the Court entered a judgment against Wendy Lee, E. Stock, and EZ Stock ordering them to pay a total of $2,117,141.00 in disgorgement. The amount of civil penalty to be assessed against Wendy Lee remains unresolved. See the Judgment.
Also on September 27, 2017, the Court entered a judgment against Kiki Lin and USA Trade ordering them to pay a total of $3,640,348.00 in disgorgement and prejudgment interest. The amount of civil penalty to be assessed against Kiki Lin remains unresolved. See the Judgment.
Litigation is still pending for the remaining parties. The Defendants and Relief Defendants against whom the Court has entered judgments against have paid approximately $2 million, which is being held in an interest bearing account (the "Distribution Fund").
On June 20, 2018, the Commission filed a motion to appoint Analytics Consulting, LLC as the Distribution Agent of the Distribution Fund, along with any additional monies ordered and collected. See the Commission’s Motion.
On March 1, 2019, the Court entered an order granting the Commission's motion to appoint Analytics Consulting LLC as the Distribution Agent (the "Distribution Agent") of the Distribution Fund. See the Court's Order.
For more information, please contact the Commission:
Office of Distributions