URGENT >> BULLETIN >> MOVING: Massachusetts Halts WCM777, Says It Was Selling Unregistered Securities And Targeting Brazilian Community

breakingnews72URGENT >> BULLETIN >> MOVING: (10th Update 9:28 p.m. ET U.S.A.) Massachusetts has halted the WCM777 multilevel marketing scheme, saying it was associated with entities in Hong Kong, the British Virgin Islands and the United States and selling unregistered securities. In Massachusetts, the state said, the scheme was targeting the Brazilian community.

In a filing by the office of Massachusetts Secretary of State William Galvin, the state says it opened a probe into WCM777’s business practices in September.

Identified entities include World Capital Market Inc. of Pasadena, Calif., an asserted offshoot of a banking enterprise in the British Virgin Islands; WCM777 Inc., a dissolved Nevada business with an office in City of Industry, Calif; and WCM777 Limited of Hong Kong.

WCM777 purports to sell “cloud” Internet services. The investment scheme spread in part through weekly pitches in August and September by a WCM777 distributor using a “function room” at a Massachusetts hotel, the state said.

Investors were lured with promises they’d receive “profit sharing” and an ability to “purchase stock options” in the run-up to an asserted IPO in 2014, the state said.

The Massachusetts filing is a consent order. WCM777, according to the order, has agreed to cease business in the state and to provide refunds to all Massachusetts investors. The scheme netted at least $300,000 in the state from about 160 investors, the vast majority of whom were members of the Brazilian community, according to the order.

“Nearly all” of the investors bought into the scheme at the $1,999 level — the level that promised the highest daily payout, according to the order.

Promos advertised returns of “over 90 percent” in 100-day cycles, the state said.

WCM777 has neither admitted nor denied the allegations, the state said.

Attorneys for WCM 777 made the refund offer on Nov. 13 after presenting the state a spreadsheet on Oct. 14 showing information on Massachusetts participants, according to the order. The document does not say whether other states also are investigating WCM777. The nation of Colombia is known to be investigating WCM777.

Ming Xu is identified in the Massachusetts consent order as the founder and president of WCM777 Inc.

WCM777 promoters refer to Ming Xu as “Dr. Phil.” A Twitter account associated with the name of “Dr. Phil Ming Xu” displays WCM-related content and photos of Ming Xu with luminaries such as former U.S. Vice President Al Gore and Apple co-founder Steve Wozniak.

The photos appear to have been taken at a California business event earlier this month at which all three men spoke.

Meanwhile, there’s a photo of Ming Xu surrounded by adoring followers. The photo appears to come from the same meeting from which this video emerged:

Read the Massachusetts Consent Order.

Read Oct. 30, 2013, PP Blog story on WCM777, which appears to have promoters interested in pitching the purported opportunity to churches and their entire congregations.

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13 Responses to “URGENT >> BULLETIN >> MOVING: Massachusetts Halts WCM777, Says It Was Selling Unregistered Securities And Targeting Brazilian Community”

  1. Quick note: There appears to be considerable interest in the story above in Brazil this morning. Brazilians also are reading this one:

    http://patrickpretty.com/2013/10/30/churches-may-be-at-risk-from-wcm777-program-congregants-in-rialto-calif-may-have-been-swept-into-bizarre-cross-border-scheme-youtube-pitchman-says-venture-will-go-into-selling-shares-pre-i/

    One thing the Massachusetts Consent Order does not do is name the WCM777 distributor alleged to have pitched the “program” repeatedly in August and September at a Massachusetts hotel. My question would be whether he/she was Brazilian and whether he/she also was in TelexFree, the subject of pyramid-scheme probes in Brazil. TelexFree operates from Massachusetts.

    What’s plain is that Massachusetts isn’t keen on affinity fraud. And I also know the SEC recently charged three executives and eight promoters of an alleged worldwide pyramid scheme operating through five entities from Hong Kong, Canada and the British Virgin Islands.

    Entities known as CKB and CKB168 were “at the center of the scheme,” the SEC said last month.

    “CKB’s operators and promoters profited by abusing relationships of trust within the Asian-American community and promising investors they can earn more money by recruiting other investors instead of selling actual products,” said Antonia Chion, an associate director in the SEC’s Division of Enforcement. “What CKB really sells is the false promise of easy wealth.”

    http://patrickpretty.com/2013/10/17/urgent-bulletin-moving-sec-charges-3-executives-8-promoters-of-alleged-worldwide-pyramid-scheme-operating-from-hong-kong-canada-and-british-virgin-islands-ckb-and-ckb168-frauds/

    According to Massachusetts, most of the WCM777 participants in the state were members of the Brazilian community. So, they spoke Portuguese.

    It very well may be the case that California will have a concentration of Spanish-speaking WCM777 participants, given the state’s Latino population and the fact that a WCM777 pitchman said on YouTube that he was pitching a Latino church in Rialto.

    As the PP Blog reported on Oct. 30:

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    What’s potentially worse is that the YouTube pitchmen claimed in a promo for WCM777 that he had “a presentation in Rialto, California, with a church of 500 people where the entire church is going to be there, Spanish church in Rialto.”

    __________________________________________________

    The Massachusetts allegation that most of the WCM777ers bought in at the $1,999 level for the higher payout is important because its suggests the lower levels were just window dressing and that the whole thing was designed to drive sales in multiples of $2,000.

    Massachusetts alleged that “there is no limit to how many units an individual may purchase.”

    This is from the PP Blog’s Oct. 30 story that references the planned pitch to the Latino church in California:

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    . . . the WCM promoter suggested that prospects should ignore lower affiliate levels and buy in at $1,999 because the position would pay $3,200 in 100 days. He also suggested that reentry at the $1,999 level would cost only $20 out-of-pocket and that the position would continue to return $3,200 every 100 days.

    “Most people are coming in with three units, seven units, 15 units and above,” the narrator said.

    “I just had some[one] wire me from Mexico . . . $6,000 for three units,” the narrator said. “I’m signing up another person [in] [Florida?] for six units as well — excuse me, three units as well — another $6,000. And this is just going nuts.”

    __________________________________________

    The “wire me from Mexico” assertion by the pitchman also is troubling because it suggests that individual WCM777 affiliates are accepting international wires from their customers. That potentially opens the door to all kinds of problems. The story below outlines just one example of how fraud can thrive in this environment:

    http://patrickpretty.com/2011/09/09/ponzi-forum-alert-moving-sec-charges-texas-based-imperia-invest-promoter-with-securities-fraud-other-offenses-agency-says-jody-dunn-targeted-deaf-investors-lied-to-them-and-cherry-pick/

    Patrick

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  2. Quick note: Have seen a “WCM777 Boston” Facebook site that claims either it or WCM777 itself is located at 1 Main Street in Boston. The phone number, however, uses the 978 Area Code, which does not appear to be a Boston Area Code.

    http://en.wikipedia.org/wiki/List_of_area_codes_in_Massachusetts

    “revolutionary business to make money,” the Facebook site says.

    A post yesterday screamed, “WE ARE COMING TO HOUSTON…”

    A Nov. 14 post advertises two dates for the Houston event: Nov. 22 and Nov. 23. A Nov. 11 post suggests the event will be held at “Crown plaza northwest brookhollow.”

    So, we now know that WCM777 hotel events have been held in Massachusetts and are planned for Texas.

    “we are going to give away 2 tickets to the game jaguars vs texans on nov/24,” a Nov. 11 post claims.

    A Nov. 1 post says, “U$32.00 DOLLARS EVERY DAY. NON STOP Daily Cash Flow NO Selling Required…coming soon, meeting in Houston, 11/22 and 11/23 . . .”

    Patrick

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  3. Area code 978 is northeast MA, primarily Lowell, MA.

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  4. admin: WCM777 hotel events have been held in Massachusetts and are planned for Texas.

    Plus a June 17 hotel event in City of Industry, Calif., at which a photo of Brazil’s Christ the Redeemer statute was displayed:

    http://patrickpretty.com/2013/11/16/like-profitable-sunrise-and-telexfree-schemes-wcm777-used-photo-of-christ-the-redeemer-statue/

    Patrick

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  5. They are in Odessa Tx today
    At Elegante Hotel
    In spanish to conquer the Hispanic race especially the older ones that have no clue to access internet and search scams. They are vounerable to these scams.

    The already hit up Dallas, El paso and many more Texas Cities

    People are investing their life savings to double their money. Many people cannot afford to lose money.

    The FBI needs to investigate

    Their new name is Kingdom 777

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  6. I am investigating since the January 20 2014 because I joined http://www.wcm777 since November and I live in Dallas Texas. I was at a meeting last night with my team leader to find out exactly what is happening and they said that the company is closings for good because the USA government is closing it down. I am scared that our only investment will be lost. I don’t know who this is ir where to start.

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  7. Hi Eloisa I`m in the same boat. Very afraid of loosing my savings. I do not whats in going to happens. I would like to know if the people in Boston got their money back.

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