LOS ANGELES, Dec. 19, 2010 /PRNewswire/ -- In a victory handed down by the Los Angeles Superior Court, Christopher Adams, along with affiliates associated with Adams, was awarded a judgment exceeding $64 million US against two individuals, David Topolewski and Hong Mu, as well as corporations affiliated with the two, Wen He Educational Technology Ltd, BEXT, and EXPL, on an array of charges including fraud, breach of fiduciary duty and constructive fraud. (Case number BC382058).
Mr. Adams is represented by the law firms of Baker & McKenzie LLP, on an international basis and the law firm of Baker, Keener & Nahra LLP, in Los Angeles.
The judgment shows that using various companies created with the intent to hide assets, Mu and Topolewski intentionally misappropriated assets, breached contracts and made concentrated efforts to improperly destroy the economic value of the original company and agreement, created with Adams in 2001. The original business contract saw Adams as an equal partner in a joint venture created to teach English to Chinese students using a proprietary method that has since gone on to secure a lucrative contract with the Chinese Ministry of Education (CMOE) that Adams originally negotiated. After the judge's ruling Adams stated, "I feel vindicated by the court's decision, it has been extremely difficult to unravel the web of deception that the defendant created over the last ten years and we are still looking at other parties who may have acted with them to commit fraud." Under Adams' guidance and using the financing he provided, the company was to create software able to teach English by computer and Internet-based applications which was recently spun into a new entity called Qooco.com.
EXPL, a Singapore company, was placed in receivership on the eve of trial via two security agreements in favor of ABRAX Capital, IWU International and a host of others including Mu, Topolewski and various members of the Topolewski family. ABRAX Capital, a Hong Kong investment company, is owned by Dr. Uli Sigg, the former Swiss Ambassador to China, North Korea and Mongolia and Wang Cheoyoung from China Equity. ABRAX Capital is managed by Mr. Manuel Salvisberg. Topolewski secured additional financing for EXPL from ABRAX Capital by a promissory note, stating that it was not engaged in any pending litigation, which was patently false. The commercial fraud division of the Singapore police is now investigating the receivership.
Other companies and individuals with a financial interest in EXPL during the time of litigation include Chengwei Ventures of Shanghai and Saunders Holdings of Palo Alto, CA. Saunders Holdings is a family investment vehicle for G. Leonard Baker, a Director with Palo Alto based Sutter Hill Ventures. Griff Baker, son of G. Leonard Baker is a venture partner with Chengwei Ventures. Chengwei and Saunders combined to invest $5.5 million in 2006.
Partners of Qooco.com include: New Oriental Education and Technology Co. Ltd., Fesco, Tongfang PC, Baby Tree, Sina, Baidu, and Yale University Press.
About Christopher M. Adams: Mr. Adams is a private equity investor based in Los Angeles.
For more information please contact Hilary Adams at email@example.com or 310.562.8081.
SOURCE Christopher Adams LLC