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Tag: WCM777

  • 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 an “investment scam” that gathered at least $20 million. California, Colorado and Massachusetts have banned the “program.” Louisiana and New Hampshire have issued Investor Alerts.

    The province of New Brunswick in Canada also has issued an Investor Alert.

    Ming Xu has been identified in securities actions as the operator of WCM777. Some promoters have called him Dr. Phil Ming Xu and Dr. Philip Ming — or just plain Dr. Phil. At a business event in California last year, Ming Xu was photographed alongside former U.S. Vice President Al Gore and Apple co-founder Steve Wozniak.

    Some MLM scams try to gain a head of steam by associating themselves with famous politicians, famous people and famous businesses. Promos for WCM777 have sought to tie to firm to several famous companies.

    A Twitter account in the name of Dr. Phil Ming Xu says this this morning: “You have not shut me up into the hand of the enemy. You have set my feet in a large place.”

    A Jan. 27 Tweet said this: “Though an army should encamp against me, my heart shall not fear. Though war should rise against me, even then I will be confident.”

    Meanwhile, a Jan. 25 Tweet said this: “Confidence in someone unfaithful in time of trouble is like a bad tooth, or a lame foot.”

    Based on promos that have appeared online, it is possible that individual WCM777 sponsors were accepting wire transfers from their recruits and then somehow forwarding the money to WCM777, which reportedly has a presence in Hong Kong and the British Virgin Islands.

    Circuitous flow of cash is a key marker of scams and may signal money-laundering or other crimes are occurring.

    Please use the PP Blog’s search function near the upper-right corner to find more information on WCM777.

  • 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

    From the Colorado C&D against the WCM777 MLM "program."
    From the Colorado C&D against the WCM777 MLM “program.”

    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 in banning WCM777. The other states are California and Massachusetts. Louisiana has issued an Investor Alert. (Edit 6:33 p.m. New Hampshire also has issued an Investor Alert on WCM777.)

    California has alleged that WCM777 gathered at least $20 million.

    Gerald Rome, Colorado’s acting securities commissioner, announced his state’s ban on Jan. 21. Paperwork is here. Ming Xu consented to the action without admitting or denying wrongdoing.

    From a statement by Rome’s office (italics added):

    Named in the Order are World Capital Markets, Inc., WCM777, Inc., and their founder and chairman, Ming Xu, all of Pasadena, California.

    The Staff of the Division of Securities (the “Staff”) alleged that World Capital sought Colorado investors through websites, webinars, and live presentations to purchase packages that allow the purchaser to access World Capital’s cloud media services and earn commissions or profits with advertised returns of more than 90%. The program operated much like a multi-level marketing program where purchasers received bonuses for referrals, purchase of stock options, and other bonuses based on how many referrals obtained by a purchaser.

    The Staff alleged that World Capital failed to register either security offering and, by offering the investment opportunity to the public at large by soliciting on the internet, World Capital violated the registration provisions under the Act.

    Meanwhile, it turns out that California didn’t have to venture too far to find WCM777.

    The WCM777 MLM scam was operating from Suite 900 at 150 S. Los Robles Ave., according to a Desist and Refrain Order the state issued last week.

    But the state itself has an office in the same building. The Pasadena branch of the California Department of Rehabilitation occupies suite 300, according to the DOR’s website. The agency says it “administers the largest vocational rehabilitation program in the country.”

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

    From the California order announced last week on the state's website.
    From the California order announced last week on the state’s website.
    From a Consumer Alert issued by the California Department of Business Oversight. (Red highlight by PP Blog.)
    From a Consumer Alert issued by the California Department of Business Oversight. (Red highlight by PP Blog.)

    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.

    Named in the Jan. 8 order announced late last week on the state’s website are WCM777 executives Ming Xu and Zhi Liu. Harold Zapata, an alleged WCM777 YouTube pitchman with an address in Hanford, Calif., also is named in the order. Corporate entities named in the order include World Capital Market Inc., WCM777 Inc. and WCM777 Limited, all of Pasadena.

    Zapata, California alleged, identified himself as “CEO at WCM777 Global Stars,” something that suggests he was the leader of an upline group. On July 15, 2010, the PP Blog reported that FINRA warned the investing public about scams that spread on social-media sites such as YouTube,  Facebook and Twitter.

    WCM777 was targeted at people of faith and members of minority communities. California investors can file a complaint by dialing 866-275-2677, the state said.

    In November, the state of Massachusetts accused WCM777 of selling unregistered securities.

    California now has done the same thing.

    “The WCM777 membership units offered and sold by Respondents constitute securities,” the state charged.

    And, it alleged, “Respondents offered and sold securities by means of written and oral communications which included untrue statements of material fact and which omitted to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.”

    WCM777 now is operating as Kingdom777, and has been associated with a series of bizarre events. On Jan. 17 via Twitter, the “program” issued a declaration of love to the people of Peru after a police raid on a WCM777 outlet there. The announcement was attributed to “Dr. Phil Ming Xu” and claimed the enterprise now “has a promotion plan with a payout ratio of 130%.”

    In issuing the announcement, WCM777 appeared to be ignoring the securities issues altogether. California publicly announced the order six days later, on Jan. 23. The California order is dated Jan. 8. A day earlier, on Jan. 7, WCM777 published an announcement of the name change to Kingdom777, claiming “Kingdom777 has acquired the assets of WCM777.”

    As is typical in HYIP scams, the announcement blamed affiliates for WCM777’s woes.

    “Some members failed to represent WCM777 correctly and distorted our vision and mission to be a social capital company whose goal is to build a global community of trust and love,” the new company said.

    But California’s order, which in part echoes suggestions in Massachusetts that WCM777 was steering recruits to avoid lower levels of buy-in in favor of the highest level of $1,999, makes it clear that the state viewed WCM777 itself as a fraud.

    From the California order (italics/bolding added):

    9. The most expensive and, by far, the most popular WCM777 membership unit costs $1,999. The $1,999 membership unit provides the purchaser five years of access to WCM777’s alleged online cloud services. In addition, WCM777 claims that a purchaser of the $1,999 membership unit will receive up to $32 per day over a 100-day period in the form of profit-sharing payments, bonuses and commissions. Thus, over a 100-day period, a purchaser of the $1,999 membership unit would allegedly earn $1,200 more than the original cost of the unit—an alleged 60% return in only 100 days.

    10. The vast majority of purchasers buy the five year unit, rather than the less expensive units that generate lesser returns. In fact, over 95% of purchasers in the United States bought the $1,999 membership unit.

    11. There is no limit to how manyWCM777 membership units an individual may purchase at one time. In fact, a significant number of purchasers buy multiple WCM777 membership units at the same time.

    12. After the purchaser’s 100-day daily returns cycle expires, the purchaser may “re-up” by purchasing another membership unit at a 50% discount, which then restarts the 100-day cycle. A purchaser can “re-up” indefinitely. Therefore, over a 300-day span, a purchaser of a single $1,999 WCM777 membership unit who “re-ups” at the end of each 100-day cycle would allegedly earn up to $5,600 more than the cost of buying the membership units—an alleged 140% return in about 10 months.

    Precisely how California learned that 95 percent of U.S. purchasers allegedly bought in at the maximum level of $1,999 is unclear. What is clear is that the state has accused WCM777 of engaging in a rank deception and gathering at least $20 million between March 2013 and September 2013.

    Among WCM777’s fraudulent claims was that the “Respondents’ activities were not subject to the jurisdiction of the United States Securities & Exchange Commission or the United States Federal Trade Commission,” California alleged.

    Moreover, the state claimed that the respondents failed “to disclose that WCM777 had no other significant sources of income but for its sale of membership units.” Meanwhile, they failed to disclose “that WCM777 did not have an enforceable contract with Siemens under which Siemens would provide the alleged online cloud services that WCM777 advertised.” (See Oct. 30, 2013, PP Blog story, which reports on the issue with Siemens and notes that WCM777 was being targeted at a Latino church in Rialto, Calif.)

    Siemens, the state said in its order, “has publicly disavowed any relationship or contract with WCM777. In a press release, Siemens stated that it disavowed a relationship with WCM777 “[i]n order to help . . . investors avoid making any investments based on false assumptions[.]”

    And despite claims by the respondents that “WCM777’s alleged daily returns are backed by the global banking business of its parent company, WCM,” the state charged, “WCM777 and WCM had no significant income outside of sales of WCM777 membership units.

    “From March 2013 to the end of September 2013, WCM777 and WCM generated over $20 million in sales of WCM777 membership units,” the state alleged. “During the same period, over 99% of the income of WCM777 and WCM came from sales of WCM777 membership units, while less than 1% of their income came from WCM’s alleged global ‘merchant banking’ or any other business.”

    Some WCM777 promoters have claimed that the WCM enterprise had handed out more than $1 billion in loans. In a bizarre example of MLM hucksterism, the promoters identified several companies that allegedly had borrowed great sums from WCM — and even how much the firms purportedly had borrowed.

    News of the California order first was reported today by BehindMLM.com.

    Visit California’s website. Read the Desist and Refrain Order.

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

    recommendedreading1The 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 similar to kingdom777,” a source told the Blog. “In other words they see us as uneducated people who have excavated money from underground or group of dumb people who will trust them again. Believe me that amount of people who invested are already falling for it.”

    It is common for “revenue-sharing” promoters in the MLM sphere to try to switch downline members from one scheme to another. Zeek Rewards and AdSurfDaily — both massive Ponzi schemes — are examples of MLM “programs” pitched as revenue-sharing “opportunities.”

    Read Lucrazon review at BehindMLM.com.

    From BehindMLM (italics added):

    The issue with Lucrazon’s MLM business model is the basic mechanic of new affiliate money flowing in at $1000 a pop and being paid out to those who have already paid $1000 a pop for “positions”.

    WCM777 is targeting people of faith. Promoters appear to be targeting Brazilians, Brazilian-Americans, members of the U.S. Latino community and Latinos at large, Asian-Americans and Asians in general.

    Separately, the PP Blog received information today that suggests WCM777 also has a presence in Canada. A person who emailed the PP Blog said a loved one had plowed $8,000 into the WCM777 scheme.

    The “payout stopped, she was never able to withdraw,” the sender said.

    The sender was contemplating reporting WCM777 to the Royal Canadian Mounted Police, according to the email.

    In November, securities regulators in Massachusetts accused the “program” of selling unregistered securities. The WCM777 scheme also is under investigation in Peru and Colombia.

    Meanwhile, a source told the PP Blog today that something called KingdomTrade.org is being discussed in WCM777/Kingdom777 circles.

    “They claim they will also be trading Oil, [G]ems, Gold and Art as well as Stock/Options in Kingdom777,” the source said.

     

  • 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 for more info on WCM777.

    For starters, see: SPECIAL REPORT: WCM777 Says Its U.S. Operations ‘Will Be On Hold Until Further Notice’ Because Its Securities Sales ‘Failed To Fully Comply With Laws And Regulations In United States’ — But Will The ‘WCM 777 Boston’ Band Play On In Houston? And What About The Highly Curious ‘Joseph Global Institute?’

    Here is an email received by the PP Blog today from a WCM777 participant who is deeply worried. The email was sent from a U.S. state that has a considerable Latino population. Other than the carriage returns we added and the name we withheld, the email is verbatim.

    __________________________

    As far as I know our Hispanic Team Leader said we have 3 options, 1 is change address to a different country, 2 is transfer to a different name but in a foreign country and 3rd to just wait for the USA to close it down and we can request for reimbursement for every unit we have.

    All what I know is from my team leader. I Log in under affiliate with my password but there is no answers to my questions. All we want is our money back because the money we invested is what we have save all this long past year’s and I have 4 kids, 2 teenagers that are very close to start college. I need help to find out on how we can get our money back. I herd many comments in the meeting but I talk for my myself. Please help!!

    Sincerely

    [Name Withheld by PP Blog]

  • 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

    wcm777peruletterThings 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 not say whether WCM777 would provide defense lawyers for any arrestees or subjects of investigations in Peru.

    WCM777, an arm of World Capital Market, is under investigation in multiple countries. In November 2013, the firm was accused by the state of Massachusetts of selling unregistered securities. Hotel presentations in Massachusetts allegedly were targeted at Brazilian-Americans.

    In the United States and elsewhere, claims have appeared that $14,000 sent to WCM777 returns $500,000 in a year.

    As part of a Twitter declaration of love to Peruvians, “Dr. Phil Ming Xu” noted that WCM777 “wants to united [sic] people and build a global community of trust and love.”

    And, according to the Tweet, WCM777 “has a promotion plan with a payout ratio of 130% for a limited time to sell our seven cloud products” and has stopped “our promotion plan with a payout ration [sic]  [of] about 50%.”

    The Ming Xu letter to Peruvians claimed the company “is willing to back” the 130 percent scheme, but appears to ignore the issue of offering unregistered securities.

    WCM777, now reportedly known as Kingdom777, has been targeted at people of faith in the United States and other countries.

    In a Jan. 16 Twitter post, Dr. Phil Ming Xu noted, “When 4 blood moons are on the sky in this April, people will understand what we are doing.”

    Some people believe the world will end in April. It’s unclear if Ming Xu is in the end-of-the-world camp.

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

    wcm777UPDATED 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 authority in Peru is the Superintendency of Banking and Insurance.

    WCM777, which is encountering regulatory scrutiny in multiple nations, recently changed its name to Kingdom777, according to BehindMLM.com.

    Peru issued an Alert on WCM777 in December, saying the firm was collecting money unlawfully in the country.

    As the PP Blog reported in November 2013, some promos for WCM777 claimed investors willing to plunk down $14,000 received a dividend of 35 times their initial investment over the course of a year.

    Massachusetts halted WCM777 in November, saying the program was being targeted at Brazilian Americans and was selling unregistered securities.

    On Nov. 21, the PP Blog reported that WCM777 may have ties to The Way TV and Media for Christ, which have been linked to a film production known as “Innocence of Muslims.” The trailer of the film reportedly sparked violence across the Middle East in 2012.

  • MORE FROM MLM LA-LA LAND: (1) ‘Totally Wild Cover Story’ Puff Piece On TelexFree Promoter Doesn’t Reference TelexFree By Name And Doesn’t Mention Pyramid-Scheme Probe; (2) Cash-Gifting, A Bill-Counting Machine And ‘Economically Sovereign’ Individuals; (3) Jesus — (Again)

    From the Scott Miller puff piece in Home Business Advertiser.
    From the Scott Miller puff piece in Home Business Advertiser.

    UPDATED 11:23 A.M. ET (U.S.A.) The November/December issue of Home Business Advertiser carries a puff piece on TelexFree promoter Scott Miller. The one-page article, described by the publication as a “totally wild cover story,” does not reference TelexFree by name. Nor does the piece mention that TelexFree is the subject of a pyramid-scheme probe in Brazil and that a judge and prosecutor reportedly have been threatened with death.

    Rather, the piece provides a link to a page featuring a YouTube promo for TelexFree that, like the puff piece, doesn’t mention the Brazil probe and police investigations into the death threats. The 8:47 video solicits viewers to send TelexFree sums of up to $15,125 and claims prospects can earn money without selling anything.

    “We’re paid to advertise our company and products and build a team if you choose to sponsor. [Sponsoring] is not necessary,” according to the video.

    Like the puff piece, the video solicitation does not reference TelexFree by name.

    Lower sums such as $289 and $1,375 also are solicited in the video. Viewers are told that $15,125 will return at least $1,100 a week for a year. Meanwhile, according to the video, $289 will fetch at least $20 a week for a year, and $1,375 will bring in “never less than 100 bucks a week for a year.”

    From the Home Business Advertiser  puff piece (italics added):

    After a couple years of looking, Scott finally found an opportunity that allowed people to achieve success without having to sell anything or sponsor people. In fact, he now has over 14,472 positions in his group and 100% of those are now earning money every week! He even has one team member who is on track to make $200,000/year and hasn’t sponsored a single person . . . If you are interested in running a successful home business, but do not want to have to sell anything or sponsor any people . . . then this could be the perfect home business for you.

    A photo of the cover of Home Business Advertiser featuring Miller now appears on a Facebook pitch site for TelexFree styled “TelexFreeInUSA.” Info on the Facebook site suggests that Miller has gone from the 14,472 positions reported in the puff piece to “OVER 25,400 Positions Under Me! 100% Of Them Being Paid Weekly!”

    The puff piece on Miller appears on Page 30 and includes a link to a domain styled ThePaidWeeklyRevolution.com upon which the YouTube solicitation appears. Page 31 appears to consist of a companion ad from Miller that in part claims, “AS OF OCT. 10, 2013 14,472 HAVE JOINED ME 100% OF THEM ARE . . . BEING PAID EVERY WEEK!”

    Page 69 of Home Business Advertiser appears also to consist of an ad from Miller. This one appears to slam an unidentified MLM company:

    “100% COMMISSIONS?” it questions. “LMAO! ONLY 1% EVER MAKE A SALE! (READ THEIR INCOME DISCLOSURE) FORGET 100% COMMISSIONS.”

    The ad does not explain precisely why Miller apparently believes it imprudent it to join the unidentified “100% COMMISSIONS” program while he apparently believes it prudent to join TelexFree, an “opportunity” under investigation in Brazil and accused in Peru of gathering money unlawfully.

    News of the Miller puff piece in Home Business Advertiser was received late yesterday.

    Two days ago, the court-appointed receiver in the Zeek Rewards Ponzi scheme case auctioned off two plaques showcasing a Zeek puff piece that appeared in Network Marketing Business Journal in 2011. About a year after the NMBJ piece appeared, the SEC described Zeek as a $600 million Ponzi and pyramid scheme that had duped recruits into believing the money they’d been receiving came from an underlying, highly profitable business.

    Zeek constituted a “classic” Ponzi scheme in which cash from investors was simply “going to the earlier investor,” the SEC charged.

    TelexFree, which has a Zeek-like advertising component, may be operating in similar fashion. Whether the “program” is under investigation in the United States is unknown. Zeek had been under investigation in the United States for at least four months before the probe that led to its collapse was revealed in August 2012.

    Some Zeek members might have been confused by puff pieces that appeared in NMBJ in the summer of 2011 and the spring of 2012.

    The 2011 puff piece and accompanying plaques were auctioned Tuesday in Zeek’s home base of Lexington, N.C., as part of a bid to raise money for defrauded Zeek investors.

    On its website, Home Business Advertiser informs readers that it also can arrange advertising in NMBJ and other publications.

    One of the ads in the November/December issue of Home Business Advertiser is for something called “TooDamnEasy,” an apparent-cash gifting “program” in which a video pitchman tells viewers that they are looking at a stack of $100 bills totaling $60,000.

    The ad in Home Business Advertiser crows, “I don’t care what anybody says — when you can have a $60,000 yearly salary, delivered in cash, to your front door, in one day, by overnight courier … THAT’S SOME POWER THAT WILL BLOW YOUR MIND AND WILL TAKE THE AVERAGE PERSON SOME TIME TO GET USED TO!”

    As part of the pitch, the narrator inserts stacks of $100 bills in a Semacon cash-counting machine. He goes on to explain that he sometimes purchases cars for cash. The deck on the TooDamnEasy page reads, “Yearly Salaries Delivered Daily. In Cash. By Overnight Courier. 6 Days A Week.”

    “What I’m selling you is freedom,” the narrator intones.

    Two Connecticut women were sentenced to federal prison earlier this year for their roles in promoting a cash-gifting pyramid scheme and tax fraud.

    A LinkedIn profile for a user known as TooDAMNEASY.com reads in part, “To be ‘economically sovereign’ means that you’re a self-governing individual, who is financially self-sufficient and not indebted or controlled in any way, by an outside source such as credit cards, loans, interest, etc. This means that you exist as an individual who owns and controls his or her labor and income.”

    A column in Home Business Advertiser that appears to be unrelated to TelexFree and TooDamnEasy positions Jesus Christ as the person who inspired modern network marketers through his recruitment of 12 disciples.

    Images of Jesus Christ have appeared in promos for TelexFree and WCM777, an “opportunity” that became the subject of a securities investigation in Massachusetts and appears to have high-tailed it out of the United States. The state said the WCM “program” was targeted at the Brazilian community.

    Images of Jesus Christ also appeared in promos for Profitable Sunrise, which may have gathered tens of millions of dollars and funneled the cash offshore, according to an SEC fraud complaint filed in April 2013.

    This Semacon cash-counting machine appears as a stage prop in a cash-gifting video advertised in Home Business Advertiser.
    This Semacon cash-counting machine appears as a stage prop in a cash-gifting video advertised in Home Business Advertiser.

  • BULLETIN: Peru Issues Alerts On TelexFree, WCM777

    breakingnews72EDITOR’S NOTE ADDED AT 4:59 P.M. DEC. 14 AND UPDATED 8:39 A.M. ET (DEC. 16, U.S.A.): The URLs below now should be clickable. If not, they can be copied and pasted into the location bar of your browser. We apologize for the earlier formatting errors. Original story below . . .

    BULLETIN: The government of Peru has advised media outlets that the TelexFree and WCM777 MLM “programs” were raising money unlawfully in the country.

    Peruvian media are reporting the story in Spanish:

    Story URLs:

    http://www.andina.com.pe/Espanol/noticia-empresas-wcm777-y-telexfree-no-estan-autorizados-para-captar-dinero-del-publico-486768.aspx

    http://www.rpp.com.pe/2013-12-12-sbs-world-capital-market-777-y-telexfree-no-pueden-captar-depositos-noticia_654727.html

    Google translations to English:

    http://translate.google.com/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fwww.andina.com.pe%2FEspanol%2Fnoticia-empresas-wcm777-y-telexfree-no-estan-autorizados-para-captar-dinero-del-publico-486768.aspx%23.UqzFZ-JljIo

    http://translate.google.com/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fwww.rpp.com.pe%2F2013-12-12-sbs-world-capital-market-777-y-telexfree-no-pueden-captar-depositos-noticia_654727.html

    WCM777 exited the U.S. market under fire in November. Affiliates, however, still may be trying to cherry-pick U.S. money.

    TelexFree is under investigation in Brazil, amid allegations it is conducting a massive pyramid scheme. U.S. affiliates, however, have continued efforts to recruit Americans. Promotions for TelexFree also are appearing in other countries.

    News of the TelexFree and WCM777 alerts in Peru comes as the court-appointed receiver in the U.S.-based Zeek Rewards MLM scheme is preparing to sue potentially thousands of Zeek insiders and winners for the return of as much as $283 million. Zeek may have scores of former promoters in Brazil. How many of them are potential lawsuit targets is unclear.

    In August 2012, the U.S. Securities and Exchange Commission said Zeek was a $600 million Ponzi and pyramid scheme that potentially had scammed hundreds of thousands of people. An auction of Zeek-owned property will be conducted Monday and Tuesday in Lexington, N.C. The auction, coupled with the lawsuits, is a means of gathering as much money as possible for victims.

    In November, Jaime Delgado, a member of Peru’s Congress, raised concerns about WCM777. The “program” also is under investigation in Colombia.

     

  • SPECIAL REPORT: WCM777 Says Its U.S. Operations ‘Will Be On Hold Until Further Notice’ Because Its Securities Sales ‘Failed To Fully Comply With Laws And Regulations In United States’ — But Will The ‘WCM 777 Boston’ Band Play On In Houston? And What About The Highly Curious ‘Joseph Global Institute?’

    EDITOR’S NOTE: This story covers highly curious events associated with WCM777 and related entities or people. In this post you’ll find:

    • News on yesterday’s announcement by WCM that it had mothballed its U.S. operation that sells securities.
    • Questions about whether a WCM777 event scheduled over the next two days in Houston would occur or whether TelexFree, a company under investigation in Brazil amid pyramid-scheme allegations, could become the “opportunity” promoted at the Houston event.
    • News about confusion associated with a strange entity known as the Joseph Global Institute, purportedly operated by WCM777 executive Ming Xu. Ming Xu also is known as “Dr. Phil Ming Xu” and “Dr. Philip Ming.”  A website associated with the Joseph Global Institute appears to have preemptively declared the enterprise a university that confers graduate and postgraduate degrees, but is showing videos that appear to be owned by Liberty University in Lynchburg, Va. The Liberty videos have led to questions about whether Joseph Global potentially is duping visitors into believing the Liberty students who appear in the videos are Joseph Global Institute students or whether Joseph Global is a California branch of Liberty.
    • News about strange claims that WCM777 was “launching” an enterprise that actually launched long ago and became the center of an international media and diplomatic firestorm in 2012 over its reported ties to the controversial film, “The Innocence of Muslims.”

    ____________________________________

    UPDATED 6:56 P.M. ET (U.S.A.) WCM777 announced yesterday on its website that it was out of compliance with U.S. regulations and thus had put its U.S. securities operations “on hold.” Whether the purported “opportunity” whose affiliates claim can cause $14,000 to turn into $500,000 in 52 weeks had been notified by WCM777 to stop pitching U.S. prospects is far from clear.

    The news of the U.S. halt first was reported by BehindMLM.com.

    Left unsaid by WCM777 in its announcement was how the purported opportunity intends to address potential claims from untold scores of U.S. residents, including residents who attended pitchfests in hotels and churches and who might have purchased its securities. It is known from public records that Massachusetts purchasers were offered refunds. On Nov. 14, the state alleged WCM777 was selling unregistered securities.

    The WCM777 announcement did not address whether the “opportunity” had reported itself to the SEC. Nor did it say whether it had been contacted by the SEC. Until yesterday, the company never had directly addressed the Massachusetts allegations, hinting only that things had to change at WCM777.

    Another major concern: If WCM777 is selling unregistered securities, so is its stable of thousands of promoters, including those outside the United States who can solicit U.S. residents over the Internet. In theory, any U.S. -based promoter or international WCM777 promoter who continues to pitch the “opportunity” to U.S. residents could be charged under U.S. securities laws or the securities laws of the U.S. states. Whether WCM777 has the ability to block U.S. registrations is unclear.

    Will The WCM777 Band Play On In Houston?

    At the time of this PP Blog post, an apparent WCM777 affiliate site dubbed “Wcm777 Boston” on Facebook appeared not to know that WCM777 is closing shop in the United States. Nothing about WCM777’s announcement about its lack of compliance and the asserted halting of its U.S. securities operations appears on the Boston Facebook site. Indeed, at the time of this post, it was still promoting a WCM777 pitchfest set for tomorrow and Saturday at the  “Crown plaza northwest brookhollow.”

    “i just arrived in houston…. any question about the up coming meeting inbox me… dont lose this opportunity to learn about multi level marketing,” a post dated yesterday at the Boston Facebook site read. Meanwhile, a Nov. 1 post at the Boston Facebook site touting the purported daily payout of WCM777’s $1,999 plan reads, “U$32.00 DOLLARS EVERY DAY. NON STOP Daily Cash Flow NO Selling Required…coming soon, meeting in Houston, 11/22 and 11/23 . . .”

    Whether the WCM777 affiliate who runs the Wcm 777 Boston Facebook site will follow through with the plan to pitch WCM777 at the event — despite WCM777’s own confirmation it was operating illegally and was halting the sale of its own securities — is unclear. Continued sales of WCM777’s offerings could trigger even more scrutiny of the firm and its affiliates. Attendees at the Houston event who plowed any money into the WCM777 scheme all could become potential litigants against the Boston pitchman and WCM777 itself. If the Boston pitchman is aware or becomes aware of WCM777’s announcement before the Houston event and seeks to pitch something else, he may find himself addressing a confused and hostile crowd.

    The Wcm777 Boston Facebook site has associated itself with a street address in Boston, although the asserted phone number for the site uses an area code from a different region of Massachusetts. Whether the operator of the Facebook site had traveled from Boston (or elsewhere in Massachusetts or another state) to host the Houston event is unclear.

    Because the “Wcm777 Boston” Facebook site also references TelexFree in a Nov 10 post, attendees of the Houston event might find themselves getting pitched on that alleged pyramid scheme, too. TelexFree is under investigation in Brazil. The Nov. 10 post reads, “I do have a bunch guys in Houston area, my downlines on wcm777 and Telexfree, they will be more than happy to talk with you… Thank you again.” It is positioned alongside the logo of the National Football League.

    The Nov. 1 post that reproduces the NFL logo contends that two lucky prospects who attend the Nov. 22 and 23 WCM777 event in Houston will receive free tickets to “JACKSONVILLE VS HOUSTON.” The game is set for Sunday in Houston. Whether Ponzi or pyramid proceeds were used to pay for the tickets is unclear.

    wcm777boston

    Also unclear is precisely how the Boston affiliate is conducting business with WCM777 and recruits. Asked to provide payment proof, the Boston affiliate contended this in a Nov. 10 Facebook post: “I work with wcm for 3 Months and I had never need to transfers money my bank account because I use my credit to sign people up, if you not happy with screenshots unfortunately I don’t have deposits transfers to my bank account from wcm777…” (Unedited by PP Blog.)

    The post introduces the possibility that the Boston WCM affiliate somehow is paying recruits’ way into WCM777 and relying on reimbursement later, a common occurrence in HYIP scams. Whether that reimbursement would come from the prospects or the company is unclear. On Oct. 30, the PP Blog reported that a WCM777 affiliate on YouTube claimed, “I just had some[one] wire me from Mexico . . . $6,000 for three units. 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 YouTube claim raises the specter that individual WCM777 promoters are accepting national and international wires from WCM777 recruits and somehow later transferring the money to WCM777. Such practices have been associated with cross-border securities scams, including the infamous Imperia Invest IBC scam in which the SEC accused a promoter of creating at least two business entities and using them to wire money to the Imperia scammers outside the United States.

    Making matters even stranger is the wording of WCM777’s announcement that it was halting its U.S. operations in the aftermath of a Nov. 14 consent order it entered into with the state of Massachusetts, which accused it of selling unregistered securities and benefiting from an affiliate’s targeting of the state’s Brazilian community. WCM777’s announcement is dated Nov. 20, six days after the order in Massachusetts. The announcement did not explain the delay in addressing the Massachusetts allegations. Nor did it explain why WCM777 hadn’t previously announced it was under investigation, only to claim later that “negotiations” went well — as though it were common knowledge that the firm was the subject of a securities investigation.

    Moreover, the timing suggests that WCM777 continued to benefit from the sale of unregistered securities across the United States even after the Nov. 14 order. Beyond that, it is far from clear whether WCM777 even has control over its U.S. affiliate base or affiliate bases elsewhere in the world. What is clear is that WCM777 is positioned as an opportunity for Christians to prosper.

    Here is WCM777’s Nov. 29 announcement in its entirety (italics added):

    WCM777 Response to Massachusetts Consent Order

    The negotiations between our lawyers and the Massachusetts’ Office of the Secretary went well. We have reached a settlement with Massachusetts.

    However, because the sale of securities failed to fully comply with laws and regulations in United States, our operations in the U.S. will be on hold until further notice; WCM Limited will continue operations. The company will implement new compliance procedures and register with the SEC before selling securities. Our customer service, IT support, and sales training are far from ideal. Especially in sales training, we don’t have a proper system set up. Some of the distributors have exaggerated the sales performance, which has led to complaints. The company system also needs to be further improved to ensure global legitimacy.

    Under the counsel of the lawyer, WCM777 has already registered in the state of California. We will soon re-enter the U.S. market. Also, WCM777 will hold the grand opening for Hong Kong office in Dubai this coming January. We will restore WCM777’s promise and move towards achieving our vision!

    Why WCM777 would hold a “grand opening” for a “Hong Kong” office in Dubai is unclear. Dubai is a city in the United Arab Emirates. Also unclear is how WCM777 intends to comply with securities regulations in all 50 U.S. states, plus federal territories and districts such as the District of Columbia (Washington, D.C.).

    Because virtually all developed nations regulate the sale of securities, WCM777 may face challenges across the globe. The scheme already is under investigation in Colombia, and there are reports that Peru has concerns.

    Affiliates, meanwhile, now have been officially blamed by WCM777 for exaggerating the offering and causing complaints, a classic corporate narrative in the HYIP world. While it is clearly true that affiliates have made outrageous claims that reflect their own lack of due diligence on the purported “opportunity,” it is equally true that WCM777 has advertised that a payment of $1,999 returns $3,200 in 100 days.

    Other Curious Issues

    An entity tied to WCM777’s purported operator Ming Xu — the Joseph Global Institute of Pasadena, Calif. — appears to be implying it operates a university that offers a “College of Engineering,” a “College of Health, ” a “College of Media Arts” and a “College of Business.” A website using the Joseph Global Institute name is accessible through a website that uses the famous name of “Harvard” as part of the URL.

    The site shows images of smiling, college-age students wearing graduation caps and holding what appear to be degrees. Other smiling students are shown studying in front of something that resembles a university hall. Visitors to the site are prompted to watch three videos, but there are no disclaimers or language that the action shown in the videos isn’t taking place at Joseph Global. All three videos appear to be owned by Liberty University, a large Christian university in Lynchburg, Va. Nothing on the Joseph Global Institute site, however, identifies the videos as belonging to Liberty and not to Joseph Global, a potential source of confusion.

    A text line below the videos on the Joseph Global site reads, “Want to see what we offer? Request a brochure here and get a tour of our school.”

    Why Joseph Global appears to be implying that it operates a university is unclear.

    Liberty University did not respond to a PP Blog request for comment about whether it was aware of the Joseph Global site.

    The strangest thing yet: A Nov. 18 Twitter post attributed to “Dr. Phil Ming Xu,” the purported operator of WCM777, says, “Launching The Way TV to transform nations & Joseph Global institute to train a group of Josephs to bless the world.”

    But The Way TV is something that launched years ago, through an entity known as Media for Christ. Media for Christ is based in Duarte, Calif. — and has a history that includes being at the center of an international firestorm.

    That firestorm centered on the inflammatory trailer of a film production known as “Innocence of Muslims,” which has been described as anti-Islamic and denigrating to the prophet Muhammad.

    Here’s how the Los Angeles Times put it on Sept. 13, 2012 (italics added):

    Joseph Nassralla Abdelmasih, the president of the Duarte-based charity Media for Christ, and Nakoula Basseley Nakoula, a convicted felon from Cerritos, emerged Thursday as forces behind “Innocence of Muslims.” An online trailer for the low-budget film incited violence in recent days across the Arab world.

    Nassralla later reportedly told the website AtlasShrugs2000 that he’d been duped by Nakoula into believing Nakoula was making a film about the persecution of Christians and he understood from Nakoula that the film was titled “Desert Warrior.”

    What was supposed to be a film about members of one faith persecuting members of another turned out to be something quite different: a film that portrayed Muhammad, a sacred figure, as a buffoon.

    Quoting Nassralla, AtlasShrugs2000 reported this on Sept. 17, 2012 (italics added):

    Nakoula needed a place to film. So I let him use my facility – that is all I did, and is the full extent of my involvement with this project. Nakoula used my facility for ten days. Media for Christ employees were given a vacation during that time, because Nakoula was using the facility and so there was no work for them. There was only one Media for Christ employee who remained, to answer phones for the ministry.

    I later discovered that Nakoula, using the name Sam Bacile, had gone to LA Films as producer of Desert Warrior, and used the name of my organization, Media for Christ, to obtain the permit he needed. He did so without my knowledge or permission.

    Now, the Twitter site under the name of WCM777 figure Dr. Phil Ming Xu is claiming it is “launching” The Way TV, something Nassralla already has launched. The Twitter site further claims the launch extends to the Joseph Global Institute, apparently the same entity that is advertising its operation of various “colleges” of higher education and showing website visitors videos of Liberty University students.

    A letter attributed to “Dr. Bruno Caporrimo” at the site references the city of Duarte, the home of The Way TV and Media for Christ, the Nassralla enterprises. Caporrimo is referred to elsewhere online as a former Mafia member who found God.

    Here is the opening of the letter, which is dated Nov. 16, 2013: (italics added):

    Dear Potential Student,

    My name is Dr. Bruno Caporrimo, Chancellor of Joseph Global Institute. At J.G.I. we have been training men and women for full time ministry, in a formal classroom experience as well as helping individuals gain a greater knowledge and understanding of the bible in order to fulfill the mandate of God’s calling in their lives. Our curriculum offers important bible doctrines in addition to the School’s emphasis on the practical side of ministry.

    It is our desire to see the world evangelized and we believe that if people are trained and equipped, from the standpoint of their local church and community, that this mandate from the Lord Jesus Christ of Nazareth can be effectively realized and fulfilled in our generation. We currently have students from 50 different churches and from more than 10 nations around the world enrolled in Joseph Global Institute. J.G.I. has equipped and discipled into full and part time church and para-church ministry, over 5,000 students and they have embarked on their personal calling to fulfill the one great Commission of Matthew 28:19.

    Whether you plan to study through our International headquarters & ‘Global Student Network’™ in Duarte, California, or through our Distance Learning and online Correspondence Courses™ we are sure that we have the tools and resources to launch and elevate your personal and ministerial calling SO THAT YOU CAN bear much fruit for the Lord Jesus Christ and to operate in faith, diligence and integrity for God’s Kingdom.

    In a YouTube video dated Sept. 8, 2012, Caporrimo and Ming Xu appear. Ming Xu is described as the “dean” of the school and says, “If you want to get involved with us . . . we have bachelor degree[s], we have master degree[s.]” Caporrimo refers to Ming Xu as “Dr. Phil.”

    The URL cited for the Joseph Global Institute in the video — TheJoseph.org — now rotates to a parked page for Sedo, a domain seller.

    Another website associated with the Joseph Global Institute — JosephGlobalInstitute.com — shows some students holding books and others receiving degrees at a graduation ceremony. The JosephGlobalInstitute.com site uses the same logo as the website that uses Harvard’s name in its URL. The logos are similar in appearance to the logo of the actual Harvard University.

    Also see coverage on the MLM Skeptic Blog about a purported Ming Xu entity known as the Harvard Global Institute.

  • WCM777 — In Pictures: (1) Send In $14,000, Get Back 35 Times That Amount (c. $500,000); (2) Launch Scheme, Buy A Golf Course And Invite Friends; (3) Rip Off Scenes From ‘Rocky Balboa’ And Pretend Sly Stallone Is On The Train

    These are screen shots from three different promotional videos or news releases for WCM777 online. The first reflects a claim that people who send $14,000 to WCM777 in a poor economy will fetch back $500,000, 35 times-plus the amount they sent in. This will be accomplished in 52 weeks through the rollover of earnings in 100-day cycles, according to the video. The text headline on the video page says this: “Investment WCM777 – The Power of 7 Units Raises over $ 500,000.” Below that, there is a link to Blog with the extension of “br,” which stands for Brazil.

    The second screen shot shows World Capital Market, the purported parent firm of WCM777, saying it bought the Glen Ivy golf course in California. Meanwhile, the third shot reflects a pitch for WCM777 that rips off more than two minutes of footage from Sylvester Stallone’s “Rocky Balboa” flick (2006) with its inspirational message and famous musical soundtrack from the six-film “Rocky” franchise, suggesting internationally famous movie star Stallone (or Rocky Balboa) would endorse WCM777.

    Unseen in the third screen shot is a text message that appeared below the video featuring Stallone. The message suggests that Brazil cannot block WCM777 or subject it to investigation, as it did with the BBOM, Priples and Telexfree “programs.”

    Here is that message in Portuguese: “A WCM777 é um banco de investimento que usa como estratégia de venda do seu produto o marketing de rede ou marketing multinível, o produto da empresa é a tecnologia em forma de nuvem a mesma usando pelo dropbox, Skydrive só que os lucros pór indicação é em dolar além do produto e a empresa ser sustentável o Brasil não pode bloqueá-la como fizeram com a BBOM, Priples e TELEXFREE. Junte-se ao Marketing de nível Profissional!”

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    wcm777ssad

    On a side note, if the world of MLM investment schemes can rip off Sly Stallone and his fictional portrayal of the boxing world, why not the rip off the real world of the sport of badminton? BehindMLM.com is reporting that TelexFree appears to have appropriated the logo of the 2010 World Badminton Championship in Paris and made it its own.