SEC Files Pyramid Scheme Charges Against Internet Marketing Company eAdGear Inc.
On September 24, the SEC announced charges in a San Francisco federal court against internet marketing company eAdGear Holdings and eAdGear, Inc. alleging that its operators, Charles S. Wang, Qian Cathy Zhang, and Francis Y. Yuen have been operating a $129 million pyramid scheme.
Charles Wang and Qian Cathy Zhang are a married couple from Somerset County, New Jersey while Francis Yuen resides in Dublin, California. eAdGear Holdings Limited is a Hong Kong-based company and eAdGear Inc. is based out of California.
The SEC alleged in the complaint that rather than getting their revenue from products and services, eAdGear generated the bulk of their funds from investors.
In a news release from the U.S. SEC, regional director of the SEC's San Francisco office Jina L. Choi said,
eAdGear and its operators falsely claimed that they were running a profitable Internet marketing company when in reality, they were operating a Ponzi and pyramid scheme that preyed on Chinese communities and caused investors to lose millions of dollars
Rather than using investors' money as intended, eAdGear executives are accused of using the money to pay back other investors in addition to purchasing mansions for themselves in New Jersey and California. The federal court in San Francisco granted the SEC's request to freeze eAdGear operations so they could not petition any more investors.
Did you invest with eAdGear? If you lost a substantial amount of money due to their pyramid/Ponzi scheme, please contact Investment Fraud Lawyer David Meyer at Meyer Wilson to schedule a consultation.