WCM777 @ BehindMLM

The WCM777 Receiver has finally finished forensic accounting on investor losses. Of the $90.8 million dollars paid in by WCM777 affiliates, $72.2 million are recorded losses and $18.6 million was paid out in ROIs. The problem? 72,253 WCM777 affiliates had filed claims totalling $412 million in losses.

As per her duties as court-appointed Receiver of WCM777, Krista Freitag filed her tenth Interim Report on August 19th, 2016. The tenth Interim Report spans the second quarter of 2016 and provides updates on recovery of funds, PMX Jewel’s flawed diamonds, the settlement with Phil Ming Xu’s family and the investor claims process. In no particular [Continue reading…]

In March 2014 Phil Ming Xu transferred $750,000 to James Dantona and his company Governmental Impact. Dantona and Governmental Impact kept $425,000 and transferred $325,000 to Zayda Aberin and her company ZHB International Corp as a “finder’s fee”. In any event, Dantona has since settled with the Receiver. Aberin and ZHB International Group initially ignored legal proceedings [Continue reading…]

Last we checked in the WCM777 Receiver was grappling with $386 million in claimed losses by WCM777 affiliates. The problem is that, on paper, WCM777 only took in $86 million. In March the Receiver requested additional time to further analyze and verify submitted claims. As per a July 22nd filing that process is still underway, [Continue reading…]

A few days ago BehindMLM published a review on AirBit Club. Since then we’ve confirmed ViziNova co-founder Gutemberg dos Santos also co-founded AirBit Club. The other co-founder(s) of AirBit Club have not been publicly disclosed. Several sources have written in to us however claiming Renato Rodriguez, dos Santos’ partner in Vizinova, is involved. To date I [Continue reading…]

In mid 2014 Phil Ming Xu was permanently restrained from committing further violations of the Securities Exchange Act. The sentence was handed down following an SEC investigation into WCM777, a Ponzi scheme founded by Xu in 2013. The 2014 sentencing stipulated that Xu would be required to ‘pay disgorgement of ill-gotten gains, prejudgment interest thereon, and a [Continue reading…]

As part of her court-appointed Receivership duties, Kristina Freitag has filed an eighth interim report. The report spans the Receivership’s activities during the fourth quarter of 2015. Some of the developments such as the settlement with Phil Ming Xu’s family BehindMLM has already covered, but there’s also some new stuff we haven’t seen too.

Following the opening of a WCM777 victim’s claim portal late last year, some 35,545 claims were filed for a whopping $386 million in losses. The problem? The Receiver to date has only recorded around $86 million of actual invested funds. Furthermore only $30 million has been recovered for redistribution.

In addition to enriching himself with stolen Ponzi funds, WCM777 owner Phil Ming Xu also splashed out on his family. Through Xu’s efforts at investment fraud, his sister Sue Wang and mother Xiao Mei Deng received $2.5 million dollars. Some of that money went to buying Xu’s mother a house and some of it to fund [Continue reading…]

Despite the WCM777 victim claims portal opening up a few months ago in September, the Receiver has revealed that investor response has thus far been “tepid”. Reasons cited by the Receiver for the lack of victim claims include: the lack of a complete or trustworthy company database the location of many investors outside the United [Continue reading…]