The pen (our book, Escape from Paradise) is mightier than the pocketbook (X10) or How our Book Drove X10 out of Business.
On November 27, 2000 X10 Wireless had filed with the SEC for an for an initial public offering of 5 million shares to be priced at $15 to suck in $75 million from U. S. investors.
That put a market value on X10 Wireless of $376 million, of which $301 million would belong to the one Chung Hin Chew (aka Hin Chew Chung), and company. Chung ran the parent company, X10 Ltd, which was incorporated in Bermuda, out of an office in Hong Kong. The U.S. investors were purchasing a small shell of a company under the control of Chung and his X10 Ltd.
The X10 Wireless deal was described (and exposed) in Escape from Paradise. Just as our book was published, X10 Wireless was ready to go public on NASDAQ. The company even had a ticker symbol — “XTEN.”
We rushed our first copy of Escape from Paradise to the SEC, who thanked us for the book about “Hin Chew Chung,” the man behind X10 Wireless.
Immediately thereafter, on Sept. 26, 2001, the IPO of X10 Wireless was withdrawn.
Later, in 2003, X10 Wireless went into Chapter 11 bankruptcy and struggled to stay alive.
Maybe some private investors would show up—and they did.
Several years ago, X10 Wireless’ parent company, X10 Ltd went bankrupt. Their Hong Kong office disappeared.
After years of struggle to stay alive, in August 2013, X10 Wireless went into Chapter 7 bankruptcy and was liquidated by the United States Bankruptcy Court, Western District of Washington in Seattle.
The court notified over 400 creditors and shareholders of the demise of X10 Wireless. We have the list—it’s public information—anyone can get it.
The creditors included people who paid for and never received their orders, and include Canada’s Revenue Agency, Google, American Express, Bank of America, FedEx, Sprint, UPS, Verizon and others.
Shareholders of note who lost their investments in X10 Wireless were Douglas Ooi (step-nephew of Singapore’s ruler, Lee Kuan Yew) and Singaporean Low Kee Cheong.
Did the shareholders of X10 Wireless—those who invested in the company know that, the mysterious X10 Ltd owned 91.63% of X10 Wireless?
Did they know that the bulk of the profits would go to the 91.63% owner—X10 Ltd, aka Hin Chew Chung, and not to the minor shareholders of X10 Wireless.
We explained this set up very clearly in Escape from Paradise (and the SEC understood).
Even had X10 Wireless done well, or gone public, X10 Ltd. with its 91.63% ownership would have been the big winner—along with the mystery man behind X10 Ltd., Chung Hin Chew (again aka Hin Chew Chung).
Originally, Chung was from Brunei. After encountering some “difficulties” in Brunei, and being held for a year under house arrest by the Brunei authorities, he fled to Singapore.
Chung now lives in far-off Malaysia at a very fashionable address:
54 Jalan Bruas
50490 Kuala Lumpur
No. 2, Jalan Chelagi
50490 Kuala Lumpur
Creditors who are interested should be able to reach him there.
With Chung’s ownership, there would not have been much left for the minority shareholders of X10 Wireless even had the company not gone under.
Now, nothing is left for Chung Hin Chew, X10 Ltd, or the minority shareholders and creditors of X10.
Still, there plenty of X10 products for sale on eBay.