Arcadia Councilman John Wuo, who is under investigation by California’s Fair Political Practices Commission, has resigned.
In a letter read by Mayor Gary Kovacic during Tuesday night’s city council meeting, Wuo cited health and personal reasons for his resignation, the San Gabriel Valley Tribune reported. He has served on the council for 12 years, including as mayor for three terms.
The resignation comes at a time of scrutiny for Wuo, whom the Fair Political Practices Commission is investigating for alleged violations of the Political Reform Act. A complaint filed by Arcadia resident David Arvizu prompted the investigation into alleged violations of the act’s statement of economic interests disclosure requirements as well as the prohibitions regarding conflict of interest, according to the newspaper.
In addition, a lawsuit intended to be certified as a class action has been filed, alleging Wuo helped to defraud investors in a $32 million “pyramid scheme.” An attorney filed the lawsuit on behalf of U.S. and Chinese investors who were allegedly bilked by Arcadia-based business US Fine Investment Arts, Inc., the Tribune reported.
The lawsuit, filed in Los Angeles County Superior Court, names 10 defendants, including USFIA, the firm’s CEO Steve Chen and Wuo, who has been under scrutiny for his public endorsement of Chen, USFIA and Gemcoin, a cryptocurrency at the center of the alleged scheme, according to the Tribune.
“In one particular video clip of Wuo (at a USFIA marketing event,) the first thing he said to the crowd was ‘I am the mayor of Arcadia,’ so obviously that’s important,” Attorney Long Z. Liu said of Wuo’s inclusion in the lawsuit, according to the Tribune. “Especially to investors in China because if a business is publicly endorsed by a government official, not only is the business legitimate, but the business will make a lot of money.”
Among the complaints lodged against the defendants is fraud, negligence, breach of contract and civil R.I.C.O, the Racketeer Influenced and Corrupt Organizations Act, according to the document. Liu said he is seeking a minimum of $100 million in damages, the Tribune reported.
The lawsuit comes one week after federal authorities raided USFIA’s corporate offices and days after the Securities and Exchange Commission filed fraud charges against USFIA, Chen and a dozen other companies he controls. Wuo was not included in those charges.
—City News Service