WCM777: Claims Deadline Extended to December 24th
The deadline to file a claim in the WCM777 receivership has been extended to December 24, 2015.
The address for the receiver’s website is http://www.worldcapitalmarketreceivership.com/
You can file an electronic claim by clicking here.
WCM777: Final Judgment Against Aeon Operating, Inc.
Today, this Order was issued in response to yesterday’s STIPULATION for Settlement Consent of Relief Defendant Aeon Operating, Inc. to Final Judgment filed by the Securities and Exchange Commission:
FINAL JUDGMENT AS TO RELIEF DEFENDANT AEON OPERATING, INC.
“having entered a general appearance, consented to the Court’s jurisdiction over Relief Defendant and the subject matter of the action; and consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment:
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that the $1,276,714 was transferred to the receiver, Krista Freitag, from an account held in the name of WCM Resources, Inc., which account was jointly controlled by defendant Ming Xu and persons associated with Aeon, and that Aeon relinquishes any and all claims to those funds in satisfaction of the SEC’s claims against Aeon as a relief defendant in this proceeding.
IT IS FURTHER ORDERED, ADJUGED, AND DECREED that the Commission’s claim against Aeon shall be, and hereby is, dismissed.
WCM777: Claims Portal Open
Pursuant to Court approval, a claims portal has been opened for victims of this scam to file a claim, which is similar to the Zeek Rewards claims process.
The deadline to file a claim is November 9, 2015.
For more information on this matter, please contact the Claims Administrator at:
||Krista L. Freitag, Receiver
c/o SEC v WCM777 Claims Administrator
PO Box 3775
Portland, OR 97208-3775
Please ensure that you include your name and your return address on all correspondence.
WCM777: Receiver’s Fifth Interim Report
The WCM777 receiver has filed the 5th Interim Report, which details the huge amounts of money the alleged defendants spent buying 2 golf courses, 8 homes/properties, and over $17 million transferred to over 20 third parties. All relative documents are available at the website below.
Here’s the Receiver’s website: http://www.worldcapitalmarketreceivership.com/
PatrickPretty: Kidnapping and Murder Associated with WCM777
Here’s the link to the PP Blog post.
Here’s the link to the newspaper article
BehindMLM: WCM777 & Extent of Fraud
Back in March the SEC shut down WCM777 and it wasn’t long thereafter that a court appointed Receivership took over.
Tasked with securing funds that will eventually be returned to investors who lost money in the scheme, little has since emerged as to the status of the Receivership’s efforts.
In contrast to the Receivership circuses of TelexFree and Zeek Rewards, the WCM777 Receivership has been deceptively quiet.
In the Receivership’s Second Interim Report however, details of what exactly they’ve been up to are finally revealed.
BehindMLM: WCM777 offshoot, “Global Unity”
Global Unity is probably the most direct successor of the WCM777 Ponzi scheme. When the regulatory heat got too much for founder Phil Ming Xu, he put out a message saying he’d sold the business to some new owners, and that he hoped they could turn it legit.
Global Unity was far from legit though, with the owners instead opting to try to reload WCM777′s business model. Global Unity affiliates even professed the company to be safe from the SEC, largely due to the fact that it was based offshore in Hong Kong:
The team now manages the company from Hong Kong is doing so with much more professionalism than the previous team.
Total trust in the new policy according to which there has been. -Global Unity will not close, will continue its activity and will continue to pay according to the payment Plan.
SEC is only for USA. As already known the company not operating currently in USA. The rest of the world continues its activity.
That late March and after the announcement things went quiet. A week or so into April and Global Unity’s website went down, showing an “under construction” message.
Now, it seems the owners are trying to flog the same business under yet another name. [Continue reading…]
BehindMLM: 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 at a finality to Xu’s personal input into the SEC case, a much more sombre sounding Xu shed the briefest of light on his side of the story.
BehindMLM: Global Unity affiliates claim safety from SEC
When Phil Ming Xu became aware that the SEC was investigating his WCM777 Ponzi empire, he began to divert deposits made by investors to Hong Kong.
As noted by the SEC in their complaint against Xu,
Around October 2013, at the same time that state regulators began investigating the WCM777 offering, (WCM777) stopped depositing investor funds into their United States bank accounts, although the WCM777 offering continued.
Since October 2013, Defendants have raised more than $37 million from investors which has been deposited into their Hong Kong bank account.
Whether or not the appointed Receivership in the case will be able to recover the funds from Hong Kong is unclear, but that hasn’t stopped affiliates in Global Unity from proclaiming their opportunity is safe from US regulation.
BREAKING NEWS – SEC Halts Pyramid Scheme – WCM777 !!!!
SEC Halts Pyramid Scheme Targeting Asian and Latino Communities
03/28/2014 12:58 PM EDT
The Securities and Exchange Commission today announced charges and asset freezes against the operators of a worldwide pyramid scheme targeting Asian and Latino communities in the U.S. and abroad.
The SEC alleges that three entities collectively operating under the business names WCM and WCM777 are posing as multi-level marketing companies in the business of selling third-party cloud computing services, which can include website hosting, data storage, and software support. The entities are based in California and Hong Kong and controlled by “Phil” Ming Xu, who is a resident of Temple City, California.
According to the SEC’s complaint filed in federal court in Los Angeles, WCM and WCM777 have raised more than $65 million since March 2013 by falsely promising tens of thousands of investors that the return on investment in the cloud services venture would be 100 percent or more in 100 days. Investors were told they would receive “points” for making investments or enrolling other investors. The points would be convertible into equity in initial public offerings of high-tech companies their money would help launch. However, rather than building out cloud services or incubating high-tech companies, Xu and the WCM entities used investor funds to make Ponzi payments of purported investment returns to some investors. They also spent investor money to purchase golf courses and other U.S.-based properties among other unauthorized expenditures.
The court has granted the SEC’s request for an asset freeze and the appointment of a temporary receiver over the assets of WCM, WCM777, and several other entities named as relief defendants for the purpose of recovering money from the scheme in their possession.
“Xu and his entities claimed they were using investor funds to build a strong cloud services company that would then ignite other high-tech companies and ultimately make their investors very wealthy,” said Michele Wein Layne, director of the SEC’s Los Angeles Regional Office. “In reality, they were operating a pyramid scheme that preyed on investors in particular ethnic communities, leaving them with nothing left to show for their investment.”
According to the SEC’s complaint, WCM and WCM777 sell their products exclusively to investors and have no other apparent sources of revenue. Their offerings and operations depend almost entirely on the recruitment of new investors and purchases by existing investors to provide the money for returns. On its website, WCM777 specifically addressed the question “Is WCM777 a Ponzi Game?” by writing, “In summary, we are not a Ponzi game company. We are creating a new business model.”
The SEC alleges that Xu and his entities made various false claims to investors about purported partnerships with more than 700 major companies such as Siemens, Denny’s, and Goldman Sachs – in some instances falsely representing that they had permission to use their logos. Meantime, besides buying two golf courses with investor money, Xu and his entities also purchased a warehouse, vacant land, and several single family homes They also used investor funds to play the stock market and make other related investments through intermediary companies, such as an oil and gas offering. They also sent investor money to a rough diamond jewel merchant in Hong Kong and another unrelated company affiliated with Xu.
The SEC’s complaint alleges that WCM, WCM777, and Xu violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5. The complaint further alleges that Xu violated Section 20(a) of the Exchange Act. In addition to the asset freezes and appointment of a temporary receiver, the Honorable Christina A. Snyder also granted the SEC’s request for an order prohibiting the destruction of documents and requiring the defendants to provide accountings. A court hearing has been scheduled for April 10, 2014.
The SEC’s investigation has been conducted by Peter Del Greco, Maria Rodriguez, and Marc Blau of the Los Angeles office. The SEC’s litigation will be led by John Bulgozdy.
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For more information about the dangers the dangers of potential investment scams involving pyramid schemes posing as multi-level marketing programs, see the SEC’s investor alert, which also is available in Chinese.