WCM777 @ BehindMLM

Due to ongoing coverage of some the biggest Ponzi schemes that operate within the MLM industry, here at BehindMLM one of the more common questions we get is “why aren’t the authorities doing anything?” Some affiliate investors in such schemes even go so far as to use a lack of regulatory intervention as “proof” of [Continue reading…]

Following in the footsteps of Colombia, who in late November suspended local WCM777 operations and launched a criminal investigation into the company, Peru’s Superintendency of Banking and Insurance (SBS) have today banned WCM777 from operating in the country. Also caught up in the regulator’s announcement is TelexFree, with the SBS warning the Peruvian public that [Continue reading…]

Following what can only be described as a PR nightmare spanning multiple countries and continents, WCM777 have themselves come clean and acknowledged they were selling unregistered securities in the US. All but confirming the company operated as a Ponzi scheme, owner Phil Ming Xu’s latest update on the WCM777 website is a bit… strange.

Hot on the heels of the revelation a few weeks ago that TelexFree is being openly promoted as an investment opportunity in Peru, today Peruvian congressman Jaime Delgado has issued a statement warning the public about WCM777. Whilst the context Delgado’s warning was made in isn’t clear, the message to would-be and existing Peruvian WCM777 [Continue reading…]

If I’ve learnt one thing over the past year it’s that if you want to launch a Ponzi scheme targeting South Americans, you definitely need to have the “god factor”. Forget speaking Spanish or Portuguese, forget having a local presence, forget even having a business model that makes financial sense, as long as you profess [Continue reading…]

Three weeks ago twe broke the news that Colombian President Juan Manuel Santos had personally ordered a police investigation into the local business operations of WCM777. Twenty one days later, the results of that investigation are out.

In what has not the best week for our two favourite Hong Kong based Ponzi schemes currently ravaging the MLM industry. Indeed, with one facing regulatory action in the US and the other allegedly closed and not paying out investors, things don’t look good at all.

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 [Continue reading…]

Barring and unforeseen last minute entrants, 2013 will undoubtedly go down as a the year the MLM industry’s underbelly ruthlessly targeted both China and South America. Whereas efforts by South American regulators  over the past few months have finally begun to stem the tide of thinly veiled Ponzi schemes masquerading as legitimate MLM companies, over [Continue reading…]

On their website legal firm Barnett & Linn list one of their practice areas as ‘SEC Compliance‘. William Barnett and Roger Linn have each been representing business clients for over 30 years. Together they bring a wealth of experience and extensive knowledge to achieve efficient and practical solutions to their clients. Barnett & Linn specialising [Continue reading…]