April 23, 2014 09:21

Behind MLM Reports: Ming Xu repentant about WCM777?

Roughly two weeks ago we saw the SEC finally move in and shut down Ming Xu’s WCM777 Ponzi scheme. As I understand it, these last few weeks Xu has made himself available to the SEC as they continue to tie up any loose ends pertaining to the case. In a series of tweets that hint [...]

Grimes & Reese Report: SEC Halts Pyramid Scheme Posing as MLM

At the request of the Securities and Exchange Commission, a federal court in Los Angeles has frozen the assets of a group of businesses that the SEC alleges to be operating a pyramid scheme masquerading as a multilevel marketing organization. The companies are based in California and Hong Kong and controlled by “Phil” Ming Xu, [...]

Behind MLM Asks: Would TelexFree survive the SEC WCM777 shutdown?

Earlier this month, Massachusetts Secretary of State William Galvin’s office revealed that they were investigating a Marlborough-based telephone marketing company that has already been banned in Brazil for running a pyramid scheme. The inquiry stemmed from the office’s investigation into a similar company that was accused of targeting Brazilian immigrants in Massachusetts with a multi-marketing scam, [...]

Ponzi Tracker Reports: SEC Alleges Cloud Computing Company Was $65 Million Pyramid, Ponzi Scheme

The Securities and Exchange Commission (“Commission”) announced that it had initiated an emergency enforcement action and obtained an asset freeze against a California company that purportedly specialized in cloud computing but was, according to the Commission, a massive Pyramid and Ponzi scheme that targeted members of the Asian and Latino community.  Defendants World Capital Market [...]

Behind MLM Reports: SEC file charges against WCM777 & Ming Xu

That Phil Ming Xu would go down for his part in running the WCM777 Ponzi scheme was certain, and for the last few months or so it’s simply been a matter of when. Last I heard Phil Ming Xu was had fired his previous legal team after they failed to negotiate a fine penalty with [...]

Behind MLM Reports: Xu abandons WCM777 over regulatory heat

Things have been awful quiet over at the Phillip Ming Xu Ponzi empire these last few weeks. Following a spate of regulatory crackdowns on his darling WCM777 scheme spanning Peru, Colombia, Canada and the US states of Massachusetts, California and Alaska, Xu appears to have now all but given up. Well, at least that’s what he’d have you believe. [...]

Patrick Pretty Reports: Quebec Issues Investor Alert On WCM777

UPDATED 6:42 P.M. EDT (U.S.A.) The Autorité des marchés financiers (AMF) has issued an Investor Alert on the WCM777 MLM “program.” Quebec’s securities regulator now joins at least nine other jurisdictions issuing Investor Alerts or filing actions against WCM777, also known as World Capital Market, Kingdom777 and Global-Unity. Global-Unity recently used a photo of a [...]

Patrick Pretty Reports: MORE FROM MLM LA-LA LAND: Is It A Taunt? Purported Successor Firm To WCM777/Kingdom777 Uses Image Of Golden Pyramid

Updated 6:24 p.m ET (U.S.A.) Members of the WCM777 scam, which morphed into Kingdom777 after regulatory actions were filed, have been informed by a “program” upline that the venture now is operating as Global-Unity, a source told the PP Blog today. Parts of the Global-Unity website appear to be under construction. The “News” tab, for [...]

Patrick Pretty BULLETIN: California Asks Residents Who Bought Into WCM777 To Contact Department Of Business Oversight ‘Immediately’; State Says Thousands Of Locals Bought Into Scam

BULLETIN: (UPDATED 6:38 P.M. ET U.S.A.) The state of California, which last month issued a Desist and Refrain order against the WCM777 MLM “program” and called it an “investment scam,” now is asking residents who invested in WCM777 to contact the Department of Business Oversight “immediately.” At least 5,500 Californians plowed money into the scheme, [...]

Patrick Pretty Reports: Websites For WCM777 And Kingdom777 ‘Unavailable’

UPDATED 12:08 P.M. ET (U.S.A.) The WCM777 and Kingdom777 websites appear to be back online. Our earlier story is below . . . _______________________________ Websites linked to WCM777 and Kingdom777 are showing a “Service Unavailable” message this morning. The precise reason why is unclear. WCM777 now operates as Kingdom777. California securities regulators have called WCM777 [...]

Patrick Pretty UPDATES: (1.) Colorado Boots WCM777; (2) California Didn’t Have To Look Far To Find ‘Program’: State Has Office In Same Building From Which Alleged Multimillion-Dollar Securities Scam Operated

UPDATED 6:33 P.M. ET (U.S.A.) The state of Colorado has issued a cease-and-desist order against the WCM777 “program,” saying the Ming Xu-led enterprise was selling unregistered securities. Ming Xu also is known as Dr. Phil Ming Xu, according to WCM777 promoters. In issuing the C&D, Colorado now has joined at least two other U.S. states [...]

Patrick Pretty BULLETIN: California Calls WCM777 A ‘Scam,’ Issues Desist And Refrain Order That Names Executives And YouTube Pitchman

BULLETIN: (Updated 10:36 a.m. ET U.S.A.) The state of California has called the WCM777 MLM “program” a “scam” and issued a Desist and Refrain Order that bans the enterprise in the state. The Department of Business Oversight (DBO) has issued a companion Consumer Alert and is “strongly” encouraging California investors to file a formal complaint. [...]

Behind MLM Reports: WCM777 issued cease and desist in California

Following closely on the heels of Massachusetts banning WCM777 for selling unregistered securities, on January the 15th California issued a cease and desist against Xu and WCM777. Issued on January 8th by Jann Lynn Owen, the Commissioner of Business Oversight for the state of California, the “desist and refrain order” lists World Capital Market Inc., [...]

Patrick Pretty UPDATE: Dallas Group May Be Trying To Port WCM777 Members To Lucrazon

The PP Blog has received information that suggests a WCM777 group in Greater Dallas may be trying to port members to Lucrazon, a purported revenue-sharing “program.” WCM777 now is known as Kingdom777. “Same team leaders want to encourage us to invest $8000.00 and we can get 15 units and they said that it will be [...]

Email From A Concerned WCM777 Participant Raises Prospect That Worries Are Being Ignored

EDITOR’S NOTE: UPDATED 6:15 P.M. ET U.S.A. WCM777, now known as Kingdom777, is an outrageous fraud scheme operating over the Internet that has penetrated multiple countries, including the United States. Some affiliates claim a payment of $14,000 returns $500,000 in a year. The purported head is “Dr. Phil Ming Xu.” Please use the Blog’s search function [...]

Patrick Pretty UPDATE: In Aftermath Of Police Raid On WCM777 Venue In Peru, ‘Dr. Phil Ming Xu’ Declares Love For The People — On Letterhead Of Suspended California Company

Things are getting stranger at WCM777: After a police raid this week on the “program” in Peru, the purported head of WCM777 has declared his love for the Peruvian people — on the letterhead of World Capital Market, a California corporation listed as “suspended.” The letter, which is dated today and appears on Twitter, did [...]

Behind MLM Reports: Kingdom777 “committed to blessing” Peru?

On December the 15th, after a public warning was issued by Peruvian congressman Jaime Delgado, the Peruvian government moved to ban WCM777 from operating in Peru. WCM777 (World Capital Market) offers gains of up to 300% of the people who make an investment of between $399 and $1999 (USD). It seems that, initially, the scheme [...]

Patrick Pretty REPORTS: Alleged Criminality At WCM777; Government Of Peru Shuts Down Office

UPDATED 11:39 P.M. ET U.S.A. There are reports today in Peruvian media that the government of Peru has shut down an office of the purported WCM777 “opportunity” and that criminality occurred. It is unclear from early reports whether arrests were made. See story in Spanish at LaRepublica.pe. See English translation by Google Translate. The regulatory [...]

Behind MLM Reports: Kingdom777 blame affiliates for WCM777 Ponzi

When a Ponzi scheme starts to suspect it might be large enough to attract the attention of regulators, typically one of two things happens: The owners, who may or may not be publicly known, disappear and either shut the company down or hand it over to someone else… or Psuedo-compliance is brought in, with the [...]

Behind MLM Reports: WCM777 Ponzi rebrands as Kingdom777

One of the top two biggest MLM Ponzi schemes today, WCM777 brought in the new year by announcing it was changing its name to Kingdom777. Typically when a Ponzi scheme changes its name it’s because of a stigma attached to the old one, with WCM777 however the company is citing all manner of reasons for [...]

Behind MLM Reports: WCM777 Ponzi scheme “closes” US operations

WCM777 first popped up on my radar back in June of this year. In formally reviewing and analysing the WCM777 business model and compensation plan, I discovered the company offered affiliates 100 day ROIs over five investment levels. With invested affiliate funds the only source of revenue on the MLM side of the business, quite [...]