BBB Los Angeles lists WCM777 under “Ponzi schemes”
The mystery behind WCM777’s abrupt cancellation of their US business operations deepens, with news today that the BBB have listed the company under the “Ponzi schemes” section of their website.
Listed simply as “WCM777”, the BBB Los Angeles website reveals that a BBB file on WCM777 was “opened” on the 20th of August 2013.
No basis for the BBB’s Ponzi scheme classification however is provided, with the BBB only stating that
BBB is currently updating its files on all businesses in the Greater Los Angeles area and pending that review, a BBB rating is unavailable.
With WCM777 recently pulling out of the US, whether or not the BBB will be able to conduct a review of the company is unclear. I’ve sent off an email to the BBB Los Angeles chapter requesting more information and will update if I hear anything back.
At the time of WCM777’s US withdrawal rumours surfaced of a possible FBI investigation into WCM777 taking place, however as of yet no concrete evidence has emerged revealing any such investigation (by the FBI or any other US regulator or law enforcement agency).
Meanwhile the revelation of the BBB’s WCM777 Ponzi scheme classification comes hot on the heels of Colombian President Juan Manuel Santos’ call for a police investigation yesterday, in which he labelled WCM777 a “pyramid scheme”.
Santos’ request was promptly accepted by Police General Rodolfo Palomino, who went on to publicly announce a police investigation had begun.
Palomino released a follow-up statement today, reminding Colombians that those that participate in schemes like WCM777 can be charged with ‘the crime of embezzlement, illegal resource acquisition, conspiring to scam as a crime and money laundering‘.
Update 31st October 2013 – I received the following reply from the BBB via email:
Good morning Oz,
Our staff do their best to make an assessment of the company’s nature of business based on information we have in our files. This may include complaints from consumers or research our staff has done.
Our classifications are regularly reviewed and changed as needed by our staff. If you have information about this company’s business practices, feel free to send to us and we will review it.
Sincerely,
(redacted)
Council of Better Business Bureaus
3033 Wilson Boulevard, Suite 600
Arlington, VA 22201
Sounds like they’ve already conducted an investigation into WCM777 themselves.
Interesting. The problem is that the BBB in LA is “reviewing all cases” because it was caught in a pay for play scheme. The LA branch was ultimately expelled from the BBB, so, unfortunately, their ratings don’t mean much in the southland.
That just means GOOD ratings can’t be trusted. Payola doesn’t mean the BAD ratings can’t be trusted.
Maybe, unless they refused to pay. Some business did receive bad grades for not playing along.
I’m inclined to say that this particular listing is accurate, given that it specifies “ponzi,” and it appears to have opened its case after the BBB tried to convince us that it was on the up and up. I just don’t know if citing the BBB carries much weight anymore.
@Stop Ponzis
I think that depends on the criteria used to classify WCM777 as a Ponzi scheme. I’ve requested further comment from the BBB on this as no indication is provided on their website.
Oz, FYI, when I reported to you this news, it was today. But this BBB classification is already about 3 weeks old, which times well with the WCM777 closing their US office.
I actually found it about three weeks ago, but it may have been there before that!
Thanks for the heads up Frontier, much appreciated. You appear to have been the first to notice it. I’ll see if I get a reply back from the BBB over the next few days.
The BBB have connections to US authorities so maybe there’s a connection there (if there is I doubt they’ll reveal it though).
What does this even mean? Ming Xu is still here. WCM and its multitude of “employees” are still here. The affiliates are here, the website is accessible and I called their number and it instructed me to press #114 to purchase units or buy stock.
Not sure of how current the listings are but there are WCM777 meetings still scheduled in various US cities.
So what got “pulled out? Investor’s cash?
To say nothing of the recent issuance of “the following directive to WCM777 affiliates sometime in the last twenty-four hours:
Reorganize Internet Marketing
Posted on October 28, 2013.
WCM777 global legitimacy is to implement new policies…”
They have no more ceased US operations and gone “back to Hong Kong” than I have.
Another official Siemens press release, this time on their website instead of via Twitter
http://www.siemens.com/press/twitter/wcm.htm
@Hoss
They no longer have a precsence in the US. Also from what I’ve read “the US” has been removed as an affiliate sign up option.
Here’s the statement from Siemens:
The information should probably be sent to SVIEF.
The BBB as a whole is a bit sketchy when you think about it. The way I understand it, you pay the local branch for your business to be “approved” by the BBB, however, if you don’t agree to pay the fee, the BBB gives your company a “bad review” even if you are a legit company with legal business practices…
With that said, WCM777 is a POS and the fact people buy into these things makes me question mankind evolution as whole.
I don’t hold BBB ratings in the highest of esteem (too many affiliates point to them as evidence of legitimacy), however I’ve seen plenty of business listings in my research that merely mention a business is not BBB accredited. It doesn’t seem to have any bearing on their rating (in my experience).
Oz, this guy has noticed the listing back on August 30th, 2013. So the listing is older than we initially thought!
http://www.superpropaganda.net/2013/08/ciao-csn-e-wcm-777.html
Article updated with response from BBB regarding their Ponzi classification of WCM777.