Hongchang International Company Ltd (HCIL)

[angelinvestors]

Pacific Webworks PWEB 10q, Shareholder Lawsuit, Credit Card Merchant Accounts, Work at Home business model complaints etc..

Pacific Webworks has Intellipay supposedly with GoodWill of nearly 2 million yet they have problems getting a merchant account??

"On occasion we encounter a situation where we have a backlog of billing that cannot be processed until sufficient merchant processing is obtained. The Company currently has $1,330,767 in overdue billing that is on hold until we secure additional merchant processing. We expect to obtain merchant processing that will enable us to bring the Company’s billing current in the next 30 to 90 days."

** Does the problem have to do with all the CURRENT *Work At Home Scam/ Credit Card complaints coming in from overseas people?

Chargebacks and customer credit card complaints can affect the flow of merchant account banking. Whats up PWEB?

Follow my other posts to see *current* domain names and connections to PWEB.

________________________________________________________________

Current Shareholder Lawsuit update:

In October 2014 the Company filed a motion to disqualify the remainder of the law firm representing the plaintiffs in this matter. On March 12, 2015, the Court denied this motion. The Company subsequently filed for interlocutory appeal and on April 30, 2015, the Utah Court of Appeals denied this petition. ( Didnt their last 10q come out in May 2015 why no mention of this Appeal denial in that report? No time to add. happened in the next quarter? just a question.)

Pacific Webworks says:

"We are involved in various other disputes and claims arising in the normal course of our business. In the opinion of management, any resulting litigation from these disputes and claims will not have a material effect on our financial position and results of operations."

Is it believable?

Excerpt from complaint:

PWEB Pacific Webworks Lawsuit these are serious allegations.

Including "47. By usurping the opportunity, Defendants placed themselves in a position contrary to their fiduciary duties of PWW and for their own personal gain, and violated their fiduciary duties and duties of loyalty."

2nd Cause of Action. Breach of Fiduciary Duty and Corporate Waste.
Including "52. Among other things, Defendants violated these duties and committed corporate waste by: a. Using corporate assets and resources for their own personal gain; b. Using corporate assets and resources in order to usurp a corporate opportunity and to develop such opportunity; c. Using corporate assets for personal vacations; d. Failing to conduct appropriate due diligence and investigation regarding the alleged experience and qualifications of persons hired for various management positions; f. Failing to hold regular and appropriate meetings of the Company's shareholders; and k. Failing to timely prepare and/or file quarterly and annual reports with the Securities and Exchange Commission, thereby resulting in the de-listing of PWW's shares and their resulting diminution of value."

3rd Cause of Action. Derivative Action - Self Dealing.
Including "56. Defendant Lance Bell, while acting as a fiduciary of PWW, caused PWW to enter into a self-dealing contract with himself. a member of the board of directors and officer of PWW." and "59. Lance Bell caused the Company to enter into this self-dealing transaction without disclosing the transaction to the shareholders of PWW, without conducting a formal vote of the members of the disinterested board of directors or shareholders, and without seeking ratification by the shareholders of PWW."

4th Cause of Action. Civil Conspiracy.
Including "64. All Defendants combined for the objective to waste corporate assets of PWW and usurp corporate opportunities of PWW." and "65. The Defendants had a meeting of the minds in order to accomplish this object." and "66. Defendants engaged in one or more unlawful, overt acts, including, but not limited to, breaching their fiduciary duties and duties of loyalty, using corporate assets for their own personal gain, and engaging in fraud to cover up their wrongdoing."

5th Cause of action. Constructive Trust.
Including "69. Defendants wrongfully deprived PWW of the value of certain corporate assets as set forth herein through their wrongful conduct and mismanagement of the Company's assets and affairs and usurpation of corporate opportunities." and "70. Defendants will be unjustly enriched if permitted to retain unencumbered ownership of such assets and opportunities or their value, which assets and opportunities at all times material hereto have rightfully belonged to PWW." and "72. Because Defendants' interest in such assets and opportunities or any other property acquired using such assets and opportunities are the direct and proximate result of Defendants' wrongful conduct, this Court should impose an equitable constructive trust upon such assets and opportunities in an amount to be proven at trial, together with the proportional increase in the value of such assets and any other property acquired using such assets and opportunities from and after the date that Defendants began engaging in the wrongful conduct set forth in this Complaint."


I can find evidence online supporting the shareholders complaints, in my opinion.

This needs a jury trial, where all evidence new and old can be presented. If the shareholders win there should be an internal books/records investigation and management/board change.

When all money w/damages $$ and assets come home to PWEB.

________________________________________________________________

If a person claims Bankruptcy do they have to pay on a judgement and can the company claim the judgement as income if they do?

________________________________________________________________

More to follow, still digesting.

Over a Years worth of Pacific Webworks DD on 1 page here:

investorshub.advfn.com/boards/profile.aspx?user=450907

________________________________________________________________


Everything I say is my own opinion.

AngelInvestors