President of Colombia orders WCM777 investigation
On the 26th of October Columbian news network Noticias Uno (“News One), aired on the “Canal Uno” (Channel One) network), ran a story about Ponzi investment scheme WCM777 being a pyramid scheme.
Noticias Uno’s report (screenshot below),
showed footage of a meeting in a hotel located near the airport of Bogota Eldorado, during which was announced the launch of a new investment system that would allow investors to multiply their money in a few days.
During the meeting, as demonstrated by the images, it presented a video of the founder of the company 777 World Capital Market, Chinese Ming Xu who explained the investment model, referring to the need for people to deal with the collapse of the economy world.
A few minutes later the speaker of the event, Renato Rodriguez told the 400 attendees pyramid scheme with promised benefits and profits.
“Every time you enroll someone is six, six, six, when full forward averaged 396,000 dollars”, he said.
WCM777 offers affiliate investors five levels to invest at, each guaranteeing a >100% ROI after 100 days. The Ponzi element comes into play as WCM777’s ROIs are paid out of newly invested affiliate money. With no other recorded source of revenue, WCM777 simply takes newly invested affiliate money and pays it out to existing investors.
Additionally WCM777 also pays out referral commissions on the investments made by recruited affiliates, paid out down six levels of recruitment. This introduces a pyramid scheme element to the business model, rendering it a Ponzi pyramid hybrid (see full BehindMLM WCM777 review here).
In response to Noticias Uno’s WCM777 report, Colombian President Juan Manuel Santos took to Twitter to personally request a WCM777 police investigation.
Certainly different to how we usually find out about MLM investigations, points to Colombia for transparency. Whether or not anything comes of the investigation however remains to be seen.
Personally with WCM777’s operations based out of Hong Kong (the company recently fled the US citing problems ‘abiding by local laws’), I don’t see the Colombian police being able to do all that much.
Still, I suppose if they go after those ringleaders promoting WCM777 at the hotel event then at least that’s something. Better to put a stop to WCM777 duping potentially thousands of Colombians before they lose their money than trying to sort out the aftermath of a Ponzi collapse, or worse still doing nothing at all.
Update 28th October 2013 – In addition the Colombian police investigation taking place, the “Superintendency of Companies and the Financial Supervisory” have also opened a separate investigation into WCM777.