California Wow founder pleads innocence

[webfact]

California Wow founder pleads innocence
THE NATION

BANGKOK: -- ERIC LEVINE, the founder of stock exchange-listed California Wow Xperience, has put up a vigorous defence against the Anti-Money Laundering Office's allegations that he and the directors made fraudulent transfers of the company's funds overseas.

In the first statement since the fitness-centre chain hit financial trouble and later faced the AMLO allegations, Levine said the documents provide full disclosure of the company's financial transactions, and are accompanied by a letter that categorically denies any wrong-doing by the company or any directors. The company also offers total cooperation for the investigation into its bank accounts and business activities, he said.

"I state with absolute certainty and in the strongest, most unequivocal terms that California Wow Xperience operated transparently and that neither I nor any director or staff member ever made any improper or illegal transfers of even a single baht out of the company," he said.

"Even though I have been gravely affected by these public accusations, until now, I chose not to respond. However, I believe a statement of record that lays out my position clearly, and in a straightforward manner, is needed out of respect for all the clubs' members and the company's shareholders and directors who may be affected by these allegations.

"I am prepared to give the fullest of cooperation to all agencies and authorities and am confident that the facts will bear out the innocence of myself and anyone else affected by these allegations," he added.

Levine stressed that as a listed company, California Wow had strictly followed the rules of the Securities and Exchange Commission, the Stock Exchange of Thailand and the Bank of Thailand. Its financial statements were also properly audited, he said.

In regard to the allegations that during 2009-2011, the sums of Bt364 million, B495 million and Bt416 million were illegally transferred out of Thailand, he said any transfers of that scale were almost impossible as the amounts represented nearly half of the company's entire income in the years in question.

The allegations were announced after the company's fitness business ran into financial trouble. All centres were closed while a bankruptcy lawsuit was filed by creditors, including Major Cineplex Group, which leased commercial space for the centres.

A number of members, who had made up-front membership fee payments, filed complaints with the consumer-protection agency.

Stressing that he was passionate about the fitness business in Thailand, Levine said the company could have survived if the plans and actions that were being taken for its recovery had not been undermined through illegal actions.

"California Wow Xperience's business was seriously and adversely affected by the political disturbances and the flooding crisis of 2011. However, it would still have been possible for the company to recover and continue to provide services to members if the landlord of six of our clubs had not interfered in the ability of members to make use of the facilities by obstructing access or disrupting the supply of electricity and other utilities," he said.

As power and water supply was cut off, key employees left. As the clubs were closed for months, this undermined the rehabilitation plan and members' confidence, he added.


-- The Nation 2013-08-22

[noitom]

Apparently it's a Thai style frame up.

[Tatsujin]

. . . right . . .

[Ricardo]

In view of what industry they were in, surely one ought to say, he was fitted-up ?

[keemapoot]

He shouldn't waste time chewing the fat with the press, but should be firm in his lawsuit defense. He sounds likes he's fit to be tied, but maybe he just needs to slim down his rhetoric.

[Ianatlarge]

Calif Wow, and it "lifetime" memberships, reads as a classic scam. I suspect that the bulk of the liquid assets of the company were transferred to safe bank accounts elsewhere. What surprises me is that this guy is still here. Perhaps he was the one left to take the fall.

[dalpha]

Wasn't he doing the same thing in Korea before?

[pedro01]

"California Wow Xperience's business was seriously and adversely affected by the political disturbances and the flooding crisis of 2011. However, it would still have been possible for the company to recover and continue to provide services to members if the landlord of six of our clubs had not interfered in the ability of members to make use of the facilities by obstructing access or disrupting the supply of electricity and other utilities"

So it was the red riots, no the flood, no the landlords that did it...

What a sorry excuse for a businessman to not own up to killing his own Golden Goose

Edited August 22, 2013 by pedro01

[lemoncake]

Calif Wow, and it "lifetime" memberships, reads as a classic scam. I suspect that the bulk of the liquid assets of the company were transferred to safe bank accounts elsewhere. What surprises me is that this guy is still here. Perhaps he was the one left to take the fall.

Actually not at all. Membership is for the lifetime of the club not the person

[Notstupid30]

Now that's wow

[lemoncake]

The reason for downfall I see with WOW is lack of any management, not even dual but crazy pricing - it was like a local market. I was charged xxx per month , while a friend was charged xxxx per month, while gf was charged xx per month.

Member retention was non existent , equipment faulty or broken for half of the time, poor and repetitive selection of music.

[midas]

Wasn't he doing the same thing in Korea before?

Fool me once, shame on you………. fool me twice shame on me

A quick google search of other california fitness chains around the region (Hong Kong, Taiwan, Korea, Singapore, and Malaysia) will show you exactly what I’m referring to, in each of these countries the California Fitness gyms went bankrupt.

http://thaicapitalist.com/2012/04/california-wow-have-they-just-figured-out-its-a-scam/

[uty6543]

If someone accused me of any type of wrong doing and i was innocent I would defend myself immediately. If I was guilty I would keep my mouth shut until I could come up with a plausible lie and IMO that's what Eric Levine has done.

[Thaimung]

California WOW in Pattaya allegedly had no money to pay for electricity and were cut off, not long before they went down. This is a complicated case. Why didn't Levine flee the country? Where did all the money go? Did they shift funds overseas to finance further expansion or to Launder it like they are being accused of. Where is Sherlock when you need him!!!

[ezzra]

Fool me once, shame on you………. fool me twice shame on me ...fool me 3 times and I'll make you my accountant and book kipper....

Wasn't he doing the same thing in Korea before?

Fool me once, shame on you………. fool me twice shame on me

A quick google search of other california fitness chains around the region (Hong Kong, Taiwan, Korea, Singapore, and Malaysia) will show you exactly what I’m referring to, in each of these countries the California Fitness gyms went bankrupt.

http://thaicapitalist.com/2012/04/california-wow-have-they-just-figured-out-its-a-scam/

[realenglish1]

He screwed my girlfriend on a membership and then tried to get more money. So do I believe this report HELL YA.

If it clucks like chicken Waddles like a chicken and swims like a chicken Guess what ? It must be a chicken

[harrycallahan]

In regard to the allegations that during 2009-2011, the sums of Bt364 million, B495 million and Bt416 million were illegally transferred out of Thailand, he said any transfers of that scale were almost impossible as the amounts represented nearly half of the company's entire income in the years in question.

The funds transferred don't need to be sourced from the income of the year in question.

The funds can be sourced from the income of the year in question and still be transferred.

<deleted> argument so far, though admittedly I didn't RTA.

[hansgruber]

If he denies the allegations as false, why doesnt use the Thai defamation laws to sue his accusers?

[pete66]

There were lots of people on these forums saying a shut-down was "coming soon" well before it happened, yet WOW! continued to con people out of lifetime memberships.

Investigations should concentrate on the money transfered out of the country, directly from the company accounts or piped to other Thai accounts first.

Always be careful of companies offering lifetime memberships, particularly if they are called California WOW

Absolute con and fraud. Was called a long time ago.

[Thai at Heart]

He screwed my girlfriend on a membership and then tried to get more money. So do I believe this report HELL YA.

If it clucks like chicken Waddles like a chicken and swims like a chicken Guess what ? It must be a chicken

If it swims like a chicken it's normally dead anyway.

[britgent]

What an absolute thief. He should be put in jail.

Sent from my i-mobile IQ 6A using Thaivisa Connect Thailand mobile app

[Stjohnm]

"The allegations were announced after the company's fitness business ran into financial trouble. All centres were closed while a bankruptcy lawsuit was filed by creditors, including Major Cineplex Group, which leased commercial space for the centres."

So Major got screwed on the Rent, thats why their popcorn is so expensive.

[MaxLee]

What an absolute thief. He should be put in jail.

Sent from my i-mobile IQ 6A using Thaivisa Connect Thailand mobile app

One of few Falang, Hired and secretly sponsored by Thaksin???

[technologybytes]

Why is anyone blaming Eric Levine, as a foreigner he cannot own be a majority shareholder in any business... so why is he the fall guy?

Thailand can't have it's cake and eat it. Either Foreigners can own a business in Thailand or we cannot, and since we cannot.. stop blaming the Farang!!

[marell]

He screwed my girlfriend on a membership and then tried to get more money. So do I believe this report HELL YA.

If it clucks like chicken Waddles like a chicken and swims like a chicken Guess what ? It must be a chicken

Do chickens swim?

[Bagwan]

Maybe this episode will limit the amount of unseemly and unnecessary expenditure of energy in an effort to achieve a body beautiful. Maybe more time spent lying down in a darkened room contemplating the possibility of a deal too good to be true to actually be so, might have saved many some dosh - and face.

[Halfaboy]

Why is anyone blaming Eric Levine, as a foreigner he cannot own be a majority shareholder in any business... so why is he the fall guy?

Thailand can't have it's cake and eat it. Either Foreigners can own a business in Thailand or we cannot, and since we cannot.. stop blaming the Farang!!

Some background as per SET website:

- general info: http://www.set.or.th/set/companyprofile.do?symbol=CAWOW&language=en&country=US

- major share holders: http://www.set.or.th/set/companyholder.do?symbol=CAWOW&language=en&country=US

You van see that Eric Levine holds 'only' 11,53% of the shares

Have fun !

[mok199]

He shouldn't waste time chewing the fat with the press, but should be firm in his lawsuit defense. He sounds likes he's fit to be tied, but maybe he just needs to slim down his rhetoric.

fit to be THAID....

[Cuban]

Guilty of bloody irritating Radio Adverts, Wow ! Wow ! Wow

[bangkokstick]

Does he still live in Thailand ?

I would escape quickly if I had stolen the money of many rich and influential Thai...