Hin Chew Chung
Ex-Husband
&
Chairman of the X-10 Group of Companies

The Chung Gang

Once X10 could not go public, the company lost $4.3 million lawsuit
for stealing technology, for failure to pay,
and for bullying

November 18: California court orders Singaporean's X10 to pay punitive damages of $2.25.
X10 fails to turn over financial records to US Bankruptcy Court in Washington -- Judge orders X10 to comply.
Did our sending a copy of Escape from Paradise to the SEC
stop X10's $92 million IPO?
Did this prevent the now bankrupt X10 from paying off its debts?

YORBA LINDA, California, CNN, Oct 21, 2003 -- On October 7, three brothers, owners of Advertisement Banners.com,were awarded $4.3 million -- after accusing X10 Wireless Technology of trying to bully them out of business, and stealing their technology.

The three brothers stand to win much more in punitive damages, which are set for hearing on November 18.

One of the first big clients they landed was X10 Wireless Technology, a Seattle electronics firm. In short order, the company's security-camera ads were ubiquitous on the Internet, featuring women wearing little more than come-hither looks.

But then, the brothers say, X10 stiffed them the

X10 declares bankruptcy!

The lawsuit against X10 was, however, only the tip of the iceberg. Immediately after losing the $4.3 million lawsuit, X10 filed for bankruptcy under Chapter 11 of the Bankruptcy Code in U.S. Bankruptcy Court in Seattle.

Will X10's creditors ever see their money?
Chungco Bermuda, Ltd...

Does the IRS know?

In Escape from Paradise, we explained CLEARLY what X10 was doing. X10 was generating losses in the US, and shifting over their profits to the parent company in Hong Kong. The profits most likely wind in the tax-free haven of Bermuda, at Chungco Bermuda Ltd, the holding company of X10 in Hong Kong. X10's creditors have a long way to go to catch up with the elusive Hin Chew Chung.

From the book (bear in mind that S.P. is Hin Chew's father):

S. P. was selling a company called Chungco Bermuda Ltd., which owned part of X-10, to Hin Chew for US$9,000.00.

I was right, S. P. had been the backer of X-10, after all.

Then the agreement got a bit more involved.

In addition, Hin Chew had to pay S. P. S$2,665,848, which Chungco Bermuda owed to S. P.

For one United States dollar, Hin Chew would buy “the X-10 share” from S. P., a good deal, but he would also have to reimburse S$540,000 to S. P. for additional X-10 “set up” expenses, and replace S. P.’s million-dollar line of credit for X-10.

Finally Hin Chew owed S. P. personally another S$76,752, but then, somehow, S. P. also had a personal debt to Hin Chew of S$1.945,844.

I had never seen such a crazy thing. I owe you, you owe me, I sell, you buy, my expenses … This shell game gave a telling picture of the mindset of the Chungs. The mindset was money.

Escape from Paradise
Destroys X10

Click for X10's letter to the SEC withdrawing its registration - Kaput!

Lai Kew Chai
Grills the Defendant

Lai Kew Chai

From the book:

With barely a pause, Justice Lai looked at Hin Chew, and asked, “Mr. Chung?”

“Yes,” Hin Chew moved to the edge of his chair.

“Mr. Chung, what day is today?”

Hin Chew’s eyes shifted. He answered meekly, “It’s the twenty-third of May, your Honor.”

“Yes, Mr. Chung, and what day is this?”

“Well, yes, your Honor, it’s the twenty-third of May. It’s … Monday.”

“Is that all, Mr. Chung? The twenty-third of May, Monday?”

Hin Chew could only nod to Justice Lai, and then he began to smile—the Asian expression of embarrassment—and play nervously with his hair.

“Nothing else, Mr. Chung?” Justice Lai asked in a strong voice.

“No.”

“Mr. Chung, you appear to have forgotten that today, the twenty-third of May, is, in fact, the birthday of your son Marc.”

Hin Chew said nothing.