Los Angeles Federal Judge Denies Motion to Dismiss in Foreign Investment Scam

On October 24, 2012, U.S. District Judge Dale S. Fischer in Los Angeles denied Defendants’ motion to dismiss Plaintiff’s First Amended Complaint in a lawsuit over a foreign investment scam.

The plaintiff, a Virginia resident, was induced to invest over $300,000 into a purported “e-savings account” operated by a Swedish entity called Alps Credit Union. Within a short time, his funds were converted without explanation.

The Defendants include Kevin Wessel and his company, Incway Corporation (doing business as “Companies, Incorporated”), whose website refers to Wessel, based in Valencia, California, as follows:

Kevin Wessell is well renowned as one of America’s leading experts and consultants on asset protection and estate planning. Mr. Wessell is the President and CEO of Companies Incorporated, an international firm specializing in asset protection and estate planning for individuals and companies. Mr. Wessell’s firm establishes legal entities used to protect assets from lawsuits, creditors, income taxes, estate taxes, and probate.

Due to his work and innovative asset protection strategies, Mr. Wessell is in constant demand speaking to audiences around the nation in his mission to help others to protect their financial resources.

The Companies, Inc. website further states that having an overseas bank account is “safe,” “popular,” “similar to your domestic account,” “readily available through ATM machines and online account management,” and involves “the world’s safest and strongest financial institutions.” In a “Message from the CEO” on a related website, Wessel claims that “Companies Incorporated... is the largest company worldwide that establishes corporations and bank accounts around the globe.”

The First Amended Complaint alleges in part:

Apparently due to Wessell’s being “in constant demand speaking to audiences around the nation in his mission to help others to protect their financial resources,” Wessel neglected to take steps to protect Plaintiff’s financial resources. In fact, Wessel created, aided and abetted a fraudulent scheme, along with the other Defendants herein, to enable himself to benefit personally and through his businesses from Plaintiff’s financial resources, at Plaintiff’s expense.

The First Amended Complaint added numerous legal claims and also added as defendants the following entities also affiliated with Wessel: Presidential Services, Inc. 1-800 Company and Valencia Loan Company.

To see a copy of Plaintiff’s First Amended Complaint, click HERE.