Ailing California Wow Club Facing Criminal Charges

[webfact]

Ailing California WOW Club Facing Criminal Charges

The nearly bankrupt California Wow Xperience company is facing criminal prosecution in addition to civil lawsuits seeking nearly 100 million baht. The case is being examined by the Department of Special Investigation for consumer fraud. The company is in bankruptcy reorganization.

BANGKOK – November 12 [PDN]; a spokesman for the consumer protection agency said the fitness firm California WOW Xperience may be liable for criminal prosecution, because of the large number of customers filing complaints and the amounts of money involved.

More than 600 irate customers have filed complaints, and 300 of them are seeking monetary compensation that could total more than 20 million baht, said Mr. Jirachai Multhongroy, the general secretary of the Office of the Consumer Protection Board of Thailand (OCPB).

In addition, there are also lawsuits from Thai banks seeking to collect $72 million in loan repayments. With another $3.97 million in interest, creditors are seeking nearly $76 million from the ailing fitness company. California Wow has filed for bankruptcy reorganization, which was granted by the court. The company shut down all but two branches as it struggles to survive.

Full story: http://www.pattayada...iminal-charges/

-- Pattaya Daily News 2012-11-12

[MJCM]

Wasn't the debt 72 Million Thai Baht instead of 72 Million USD ($) that would increase the debt (around) 30 times

Edit: // Found the link

PATTAYA: -- Bangkok Bank Plc has sued Thailand's biggest fitness operator: California WOW Xperience Plc (CAWOW).

Bangkok Bank, the creditor, filed a lawsuit after the company was unable to service debts totalling 75.87 million THB (debt of 71.90 million THB and default interest of 3.97 million THB).

The report said CAWOW, founded by Mr. Eric Levine, “is continuing to make progress on the existing rehabilitation plan”.

Edited November 12, 2012 by MJCM

[End]

And yet just today i saw them selling a membership at the esplanade branch.

Sent from my GT-I9070 using Thaivisa Connect App

[Buchholz]

Wasn't the debt 72 Million Thai Baht instead of 72 Million USD ($)

-- Pattaya Daily News 2012-11-12

[MJCM]

Wasn't the debt 72 Million Thai Baht instead of 72 Million USD ($)

-- Pattaya Daily News 2012-11-12

55555 PDN mixes USD with THB (wishful thinking maybe ?)

[daboyz1]

Glad to see it. My ex girlfriend used my credit card there without my permission back in 2005. They were dinging my card 2k THB a month. I went in there to get it stopped. They wouldn't do anything about it. I ended up having to cancel my card with the U.S. bank and get a new one sent to me. It was a major pain.

[Tatsujin]

I hope they get what's coming to them. They were a blatant ripoff from day one and their business plan was never going to work long term. It was all aimed at the quick (big) buck which all got pocketed. Lifetime memberships for 10k? Grab it while you could, cos that was a business going down the drain from day one.

[Nisa]

These gyms all seem to be bordering on scams the way they do their sales marketing, contact commitments and auto billing but a completely different thing if they have taken money from a significant number of clients and not delivered the goods or services and then try to use bankruptcy proceedings to avoid penalties for such actions. Anybody in this situation needs to contact their credit card company to get the charges reversed ... contract or not, if they didn't deliver the goods then the card company should reverse the charges and become the debtor in the bankruptcy proceedings.

[hellodolly]

Here in Chiang Mai they are still open. I walked by them 5 days ago and they had a sign out front

"Win a chance for a summer vacation for 2 in Bali"

Did not go in but there were people in there. Heard a rumor that they had a tip jar there now. Talk of machines not being repaired. Looks Grim.

[isawasnake]

Go get em! I wonder what 10K baht minus about 100 or so trips to the gym amounts to.

[BrianCR]

Oh, for Christ sake now we are all becoming business experts, with no idea how a business operates? Lets prejudge again after all we're all experts!!!

[isawasnake]

I'm prejudging that whoever this guy is happens to be my hero, and is probably sitting on a beach somewhere sipping a 13 dollar marguerita, and leaving a 5 dollar tip. After a while of relaxing, all the locals will love him, and the cycle will continue.

[Soi Sauce]

Another case of, "In Thailand, the customer is always F^#ked."

[yougivemebaby]

This happened to me at a gym in Chicago. So it's not just a thai thing. The owner was a doctor and had his coke head brother running the place. keeping virtually everything barely keeping it afloat. He "sold" it to another company (which his brother had no idea) so he ended up going on the run because he defrauded the company that bought it. Many people got screwed.

[Nisa]

This happened to me at a gym in Chicago. So it's not just a thai thing. The owner was a doctor and had his coke head brother running the place. keeping virtually everything barely keeping it afloat. He "sold" it to another company (which his brother had no idea) so he ended up going on the run because he defrauded the company that bought it. Many people got screwed.

They fall some between but more extreme than used car salespeople and telemarketers in the US. I was actually surprised they use the same tactics here, which I had to learn first hand, but guess this is the way this chose to market themselves.

[Nisa]

From their website ...

I assume the landlord they are talking about is Major Cineplex Group based on the following ... http://www.californiawowx.com/IR/uploads/EN/02/Connected%20Transactions.pdf

Edited November 12, 2012 by Nisa

[Nisa]

A story from Forbes from 2008 about the founder ...

http://www.forbes.com/global/2008/1124/028.html

[noitom]

The Thai police and DSI are hot on the trail of this business that failed and attempting to drum up some criminal charges. These Thais, they are relentless! Boy oh boy when those Thais are in pursuit and hot on the trail, watch out. This news makes them look preposterous when in fact the prosecution of many criminal cases in Thailand where real crime was committed, are allowed to evaporate and disappear.

Good examples would be building violations, wrongful death results from fires, elevator failures, poisoned food and drinks, hit and run crimes, police collusion and collaboration, obstruction of justice, bribery. So long as this business, California Wow is owned by a farang, the Thais are hot on the case. When it comes to members of Thai society caught in crimes of reckless driving, DUI, wrongful death , destruction of property, violation of countless laws, then the newspaper and the police are not so interested in following up and in the case of the police, prosecuting cases in clear violation of Thai law.

[jerrysteve]

They will be lucky if they get 1baht or 1 penny...You can bet they Corporation is well insulated legally by their U.S. Attorney.

Companies as big as California Wow hire the best that money can buy...and their personal assets are well protected.

and if Thailand wants to pursue it, it will be a very long protracted case,

[brianP]

I think i have found a job here. After all the scams ,pitches,bogus offers,frauds and all the other bullshit i have navigated and survived in California for 55 years, I can be a consultant to the public on all these thieves of our money and time. Now they are being perpetuated over here as wealth grows here and diminishes abroad.

Don't even trust yourself and you will be fine !

[scorecard]

Oh, for Christ sake now we are all becoming business experts, with no idea how a business operates? Lets prejudge again after all we're all experts!!!

What do you mean? What has any poster said in this thread which is incorrect at law or untruthful?

Please share.

Edited November 13, 2012 by scorecard

[Phuket Stan]

Is this the same guy who sold his house / mansion which was sited just across the bridge from Phuket in PhangNa provence for the paltry sum of US24 million

[End]

Is this the same guy who sold his house / mansion which was sited just across the bridge from Phuket in PhangNa provence for the paltry sum of US24 million

Yes. I believe so. I fact, I still see him occasionally at their branch in Siam.

[Ianatlarge]

Sorry to say, I am certain that no one will get their money back. It is gone. I bought a lifetime membership in 2008 for 11k baht. (when someone offers me a lifetime membership I am always tempted to reply "Yours or mine"). So I had four good years at 3k a year. I consider that a good run, and about what I expected.

[kblaze]

A truly ugly company.

Starting last April they stopped paying the government for their employees health insurance...but continued to deduct it from their salary, essentially stealing the cash as they knew the ship was sinking.

[newermonkey]

I dont trust anything PDN prints, its gutter press of the worst kind.

[robblok]

I too had a lifetime membership, i got my money out of it. When i got in i knew it could end. But what can you expect at 11k. Even if it lasted a year it would have been good money.

[ezzra]

Worse than loosing the money is loosing your momentum's work out in a place that you

got use to and people that you know as your gym buddies, the routine, the instructores,

in short, a way of life for many many people who summoned the time and efforts to work

out there and now it's all gone and you have to look for new place and start all over again,

and I'm speaking from personal...shame...

[robblok]

Worse than loosing the money is loosing your momentum's work out in a place that you

got use to and people that you know as your gym buddies, the routine, the instructores,

in short, a way of life for many many people who summoned the time and efforts to work

out there and now it's all gone and you have to look for new place and start all over again,

and I'm speaking from personal...shame...

I know what you mean.. if you are not careful it might mean you stop working out.

[HerbalEd]

I'm prejudging that whoever this guy is happens to be my hero, and is probably sitting on a beach somewhere sipping a 13 dollar marguerita, and leaving a 5 dollar tip. After a while of relaxing, all the locals will love him, and the cycle will continue.

That's a fanciful "probably." Any evidence of that? Although I know the owner owns (owned?) a multi-million dollar estate in Phuket.