Juding USA Review: WCM777 Ponzi offshoot scheme?
Other than the mention of a “Liang Wang” as a Director of the company, there is no information on the Juding website indicating who owns or runs the business.
There a “company profile” section on the Juding website, however it is of little use and appears to be poorly translated from a non-English source, which I’ve reproduced below purely for comedic value:
A person’s power is limited, a strength of the team is limited, but a world?
Director, Liang Wang said: generate force cohesion, solidarity Birth of Hope Cohesion public, whereas the open road of hope. Open up new markets blueprint pattern Primary goal.
Infrastructure network marketing platform that will bring world-class network platform world stage Combined with the latest e-commerce system.
A key to turn on the Ju Ding vast international network platform world flight Secondary objectives To build their own brand, the establishment of commodity network.
International trademark Ju Ding is no longer just a Trade Mark Pass it to the world Ultimate goal Comprehensive plan listing Wealth creation For themselves and make their own career.
Not only do your own boss can also do the leaders of the world Dream Trilogy Dream Trilogy money into the New World Create dreams Born with a dream, dreams into reality Now start planning your dream As she grew older, the more dreams bags stuffed full of more.
But no longer a distant dream Start dreams Small investment, huge rewards. No longer just a slogan.
Now you beside me in the bud FORTUNE wealth to the ideal life span to open the first step Realize their dreams.
Making money is to make a living Make more money is to better the lives of. But joined the international network giant tripod investment platform makes you start to enjoy life.
To catch the Ju Ding’s ride, fast forward to the successful enrichment Immediate action, do not let the opportunity slip away!
The Juding website offers two languages, Chinese and English, which, along with the Chinese text used in Juding’s logo, indicates that Juding operates primarily out of China. That said, a corporate address in the US state of California is provided on the Juding website.
The Juding website domain (“judingusa.com”) was registered on the 5th of August 2013, listing a “xuemei huang” as the domain owner. What Xuemei Huang’s relationship to Juding involves is not immediately clear.
I also wasn’t able to find any additional information on Juding’s named Director, Liang Wang.
What I did notice though is that the affiliate login source-code on the Juding website refers to WCM777:
WCM777 is an investment scheme run by Phil Xu Ming, offering affiliates a passive 100 day ROI on investments of up to $1999.
WCM777 also had an office in the US state of California, however last month the company advised affiliates it was “closing its USA operations“, citing a company policy to “abide by local laws.”
With WCM777 paying out existing affiliate investors with newly invested affiliate money, it thus fits the definition of a Ponzi scheme – which would put it in violation of US law.
Juding’s relationship to WCM777 is not immediately clear, however it could signal a quiet attempt to restart WCM777’s operations in the US under a different name.
Read on for a full review of the Juding MLM business opportunity.
The Juding Product Line
Juding’s “Product Introduction” page does not explicitly list any products, with the company only providing general information on a “wish list”, “future goal & market characteristics”, advertisement and “word which carries weight”.
The Juding Compensation Plan
The Juding compensation plan revolves around affiliates purchasing either VIP or Regular positions within the company.
Juding pay out recruitment commissions on the recruitment of new affiliates, paid out down a total of five levels of recruitment.
If a Juding affiliate recruits a new VIP affiliate ($2250.99), they are paid a $400 commission.
There is a residual component to this commission, paying out $100 down an additional four levels of recruitment (affiliates are paid when their downline recruit new VIP affiliates too).
Note that an affiliate must be a VIP member to be paid Juding’s recruitment commissions. If a regular affiliate recruits a new VIP affiliate, all generated recruitment commissions pass up to the first VIP affiliate in their upline.
Residual commissions in Juding are paid out via a binary compensation structure. A binary compensation structure places an affiliate at the top of two binary teams, left and right:
These teams start off with one position each (directly under the affiliate whose binary it is), and branch off into an additional two positions each. This process repeats itself down a theoretically infinite number of levels.
In Juding, each of these positions represents a recruited affiliate, with an affiliate’s joining fee generating group sales volume (GV) as follows:
- Vip affiliate – 2250 GV
- Regular affiliate – 650 GV
This Group Volume accumulates in each binary team as more and more affiliates are recruited, either via direct recruitment or the recruiting efforts of an affiliate’s up and downlines.
Each day the total volume generated by both binary teams is compared against each other and paired off using a 2000 GV ratio, meaning 2000 GV on the left team is matched with 2000 GV on the right team.
For each group of 2000 GV matched from both binary teams, a VIP affiliate is paid a $120 commission and a Regular affiliate is paid $24. Note that once GV generated in both binary teams can only used to qualify for binary commissions once.
Binary commissions in Juding are capped at $10,000 a day.
A 2×13 matrix looks identical to a binary compensation structure (see above), however it is capped down a total of 13 levels.
In Juding’s matrix commissions, when an affiliate purchases a membership with the company they are given a position at the top of a new 2×13 matrix, within an existing larger company matrix.
As affiliates in the company purchase new VIP and Regular compensation plan positions, these matrix spots are filled left to right.
For each matrix position filled in a Juding affiliate’s 2×13 matrix, the company pays out $2. Note that this is a one-time commission per position filled and is not recurring.
Juding guarantee each VIP affiliate membership will pay out a passive $20 a day for 200 days. This equates to a total ROI of $4000 on each $2250.99 VIP affiliate position purchased.
Regular affiliates earn $4.50 a day for 200 days, equating to a $900 ROI per $650 Regular affiliate position purchased.
Affiliate membership to Juding is available at two price-points:
- VIP – $2250.99
- Regular – $650
Whereas Juding themselves aren’t prepared to disclose the nature of any relationship that exists between itself and WCM777, the company’s affiliate’s aren’t so coy.
In researching Juding, I came across many affiliates openly drawing comparisons between the two schemes:
With no products or services, as with WCM777, Juding operates as an affiliate-funded Ponzi scheme. Affiliate purchase “positions” in the compensation plan under the guise of either VIP or Regular affiliate membership, with the company guaranteeing to pay out a passive ROI over 200 days.
This ROI is naturally sourced from newly invested affiliate money.
The recruitment, matrix and binary commissions add a recruitment element to the scheme, making Juding a Ponzi / pyramid hybrid scheme.
Not only are affiliates paid a ROI from newly invested money, but they’re also paid to recruit new affiliate investors into the scheme.
Of note is Juding’s current banking arrangements, which appear to be with Bank of America (Acct: 325024502890):
Pay attention to that last line:
Funds are transferred to sponsor’s e-wallet to get you in.
Not only are Juding running an obvious Ponzi scheme, they’re also laundering money through their affiliates. You invest money with Juding, send them your ID and then they transfer the amount deposited to the affiliate who recruited you – who then uses the funds to “get you in” (read: buy you investment position(s) in the company).
How long Bank of America permit this activity to go on for I have no idea but with $2000+ deposits of affiliate money being shuffled throughout the company, it’s probably not going to be long before some regulatory triggers are activated.
That’s if the amounts Juding siphon off to China and who knows where else don’t trigger off an investigation first…
Update 6th May 2016 – Juding was run by LA resident Wenxing Huang.
Huang was arrested by FBI agents on May 5th and is now facing charges of wire fraud and money laundering.