UPDATE: Eccleston Investigates China Voice Holdings Corp. Following Emergency Asset Freeze and Ponzi Scheme Allegations; Investors Suffering Losses Encouraged to Come Forward

The attorneys at Eccleston Law have expanded their investigation of China Voice Holding Corporation following an SEC emergency asset freeze allegations that it was nothing more than an $8.6 million Ponzi scheme.  Investors suffering losses in China Voice are encouraged to contact our attorneys to discuss their recovery options.

The SEC recently obtained a court order freezing the assets of China Voice, which trades in the over-the-counter (OTC) market.  China Voice purported to have a portfolio of telecommunications products and services in both the U.S. and China. 

The SEC alleges that China Voice’s CFO David Roland Allen, and his associates Alex Dowlatshahi and Christopher Mills, promised investors in a series of offerings of limited partnerships that they would earn profits of at least 25 percent on their investments.  Investors were falsely told that their money would be loaned to companies that had a track record and large profit margins. Contrary to these representations, Allen and his associates used investor money to pay back earlier investors, to funnel money to China Voice, and for personal use.

In addition to these Ponzi scheme charges, the SEC has filed a complaint against China Voice, its former Chairman and CEO William F. Burbank, IV, and David Allen for a series of fraudulent company statements about its financial condition and business prospects.  The SEC alleges that China voice overstated its business prospects, failed to discloses the significant loans that it needed to fund its operations, and that

In addition to these charges, the SEC has charges two China Voice shareholders, Gerald Patera and Ilya Drapkin, for helping David Allen finance stock promotion campaigns to pump up the company's stock price. These campaigns included a blast fax campaign orchestrated by Robert Wilson, who also is charged in the SEC's complaint. The spam faxes were sent to thousands of people at once and contained false and misleading statements about China Voice and who was paying for the faxes. At the same time they were spending more than a million dollars on stock promotion, Patera and Drapkin dumped millions of shares of the company into the market.

Eccleston Law represents individual and institutional investors nationwide to recover their investment losses caused by securities fraud, unsuitable investment recommendations, breach of fiduciary duty, negligence or other misconduct. We have extensive experience representing investors in arbitration and litigation disputes with securities broker-dealers and investment advisory firms, and have recovered tens of millions of dollars for investors.

If you are an investor that has suffered losses in China Voice Holdings, please contact one of our attorneys at 312-332-0000 to discuss your recovery options.