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 affiliate investors certainly is:

WCM777 (World Capital Market) offers gains of up to 300% of the people who make an investment of between $399 and $1999 (USD).

It seems that, initially, the scheme works. However, as time passes and when it is not possible to convince more people (to invest, the company) stops paying (its existing) investors. Consumers should be alerted to this business.

A pyramid structure is one in which there would be no real business activity, as profitability is directly paid using money deposited by other (participants).

Delgado cites the recent Colombian investigation into WCM777 to support his statements, which two days ago led to the launching of criminal investigations and suspension of WCM777’s business operations.

At the time of publication it is not clear whether or not Peruvian regulators have begun an investigation into WCM777. The SEC equivalent in Peru appears to be the “Superintendencia del Mercado de Valores” (Superintendency of Securities), however no information on WCM777 currently appears on the agency’s website (“smv.gob.pe”).

WCM777 Founder Phil Ming Xu has not yet publicly responded to to congressman Delgado’s warning.