Class Action Alleges East West Bank Aided Ponzi-Scheme

May 4, 2009 - PRLog -- SAN FRANCISCO: The class action complaint says the SEC sued AOB Commerce in July 2007, and claims that "East West Bank has been identified as having substantially aided and abetted AOB Commerce Inc., the defendants in that action, in perpetrating a nationwide 'Ponzi-like' scheme through its branches and offices located within this judicial district." The two named plaintiffs in this case say they lost a total of $150,000 to Pasadena-based East West.

The defendants allegedly suckered investors by "guaranteeing" monthly returns of 5.5 percent. The plaintiffs claim East West unlawfully assisted in the sale of promissory notes to more than 435 people "in a Ponzi scheme perpetrated by Terchi Liao and entities he controlled, including but not limited to AOB Commerce" and other AOB entities.

The named plaintiffs in the case Carmen Amezcua and Maria Smith Barragan lost their combined life savings in the Ponzi-Scheme and sent money to East West Bank through the scheme.  Maria Smith Barragan stated: “I sure don’t want other people to suffer through this type of loss again.”

Dated:  May 4, 2009

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Unfair Business Practice and Civil Litigation Law Office. Julio J. Ramos has litigated class actions on behalf of consumers and public entities for over 10 years. A former staff attorney with the California Public Utilties Commission and associate with the Furth Firm. He is a graduate of Columbia University Law School.