WCM777 confirm “we are illegal in the US”
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.
Xu begins his update by declaring that
The negotiations between our lawyers and the Massachusetts’ Office of the Secretary went well. We have reached a settlement with Massachusetts.
“Went well”? Huh?
As reported late last week, the Massachusetts Securities Division recently concluded an investigation into WCM777’s business activities.
The end result?
WCM777 is banned in the state of Massachusetts and had been ordered to refund over $300,000 to participating Massachusetts-based affiliate investors. The company is also prohibited from continuing business operations now or in the future in the state of Massachusetts.
What “negotiations” Phil Ming Xu is talking about I have no idea, but short of declaring that he didn’t wind up in jail picking up bars of soap – how the above can be claimed to have “went well” is certainly a mystery to me.
Xu’s update continues,
However, because the sale of securities failed to fully comply with laws and regulations in United States, our operations in the U.S. will be on hold until further notice; WCM Limited will continue operations.
And there you have it, admittance that WCM777 is an out and out Ponzi scheme. The company sold unregistered securities and paid out pie in the sky ROIs using newly invested affiliate money.
What exactly Xu means by “our operations in the U.S. will be on hold” is also unclear to me. As far as I know the company still accepts US affiliate funds for investment via their California-based payment processor, Global Payout.
At this point, with WCM777 recently suspended in Colombia (and its top affiliates under criminal investigation) and the possibility of the Peruvian government following suit, one would think Xu might be feeling the heat from his global Ponzi scheme activities.
The company will implement new compliance procedures and register with the SEC before selling securities.
The company system also needs to be further improved to ensure global legitimacy.
Under the counsel of the lawyer, WCM777 has already registered in the state of California. We will soon re-enter the U.S. market.
We will restore WCM777’s promise and move towards achieving our vision!
Register with the SEC?! Oh please do Mr. Xu! I can’t wait to read how that turns out…
For reasons unknown, Xu seems unable to grasp that accepting new affiliate investments and using it to pay out existing affiliate investors is a Ponzi scheme business model.
Instead, he places the blame of WCM777’s compliance issues on ‘customer service, IT support and sales training‘:
Our customer service, IT support, and sales training are far from ideal. Especially in sales training, we don’t have a proper system set up.
Some of the distributors have exaggerated the sales performance, which has led to complaints.
Oh and naturally it’s their affiliates’ fault too. Nevermind the official WCM777 compensation plan material that clearly lays out the scheme’s Ponzi’esque nature:
But yeah, affiliates are totally to blame for WCM777 getting caught out selling unregistered securities…
So, where to from here?
Well, while we wait for Ming Xu to explain how he’s going to get a Ponzi scheme registered with the SEC in the US, Xu also revealed in his announcement that
WCM777 will hold the grand opening for Hong Kong office in Dubai this coming January.
Holding the grand opening of your “new” Hong Kong office in Dubai? Rightio, nothing suss about that…
Maybe he’s doing a Caldwell Maneuver?
Who knows, dude sounds like he’s on another
planetmountain most of the time.
“Caldwell Maneuver”, as in the airplane thing? Only 8 Google matches, talk about obscure!
No Zeek CEO Caldwell blaming Zeekheads for compliance problems.
To Funny all the distributors from WCM777 still claim they do not sell securities sad they do not even know what they are doing.
No doubt many of them are unaware….and the rest are willingly ignorant.
How anyone could even pretend that there is a way to impress salesforece compliance is beyond me. Its a free for all and there is no oversight and none is even desired, The inmates are in charge.
Well, when you believe God is on your side, it’s hard to care about or enforce compliance.
Phil Ming Xu and his devotees live in backwards universe: Wrong is right. Up is down. Cats and Dogs live together.
Lions and Lambs, dude. The guy’s “Biblical”.
Of course, that requires bringing up this story:
wmc777 guys because after 2 months in America have stopped, in peru and colombia, while telexfree from
7 months in america nobody stops? how do you make the sponsor of the World Cup in Brazil if it is a ponzi? like a ponzi can borrow money at low interest to start buying the packs?
if dissolved in 2014 telexfree Brazil and the Brazilians compensate, melt also telexfree america or is it a separate chapter? because juding has not yet been stopped? the message passing that those who enter now will make a lot of money if you do not stop immediately.
the ridiculous thing that are springing ponzi 10 per day: from nobody does anything. multfree in brazil because they have not stopped yet?
Because victims were not in the US. (WCM777 stopped in US because Brazilian immigrants hurt in US)
How does Interush sponsor Indycar, WTCC, i-Racing, and 24 Hours Rolex Enduro if it’s a pyramid selling scheme? Because it is a lying fraud with money to burn.
How does WCM buy golf course in California? They buy it with YOUR money. Same here.
The message is simple: new schemes emerge everyday… and those who have tasted the sweet poison (allegedly benefited from the scam), are addicted to it, and want even MORE people to taste it like s/he did.
Ah lol! Dunno how I missed that reference. Between all this news breaking over the last week I’ve been a bit of a zombie lately. Looking forward to a relaxing weekend!
I just get this post on my facebook page:
If this company already declare they are illegal here in the States, why they still meeting.
That’s a good question.
Think they are untouchable ??
What makes any ponzi operator hang around long enough to get caught when anyone with the smallest amount of common sense would be long gone ??
Why did Andy Bowdoin hang around, even though he had $60 million stashed away in his bank accounts
Why did Paul Burks stay around when every man and his dog KNEW Zeek was under investigation ??
Why did the Marsdens keep going until there was no money left and the authorities were breathing down their necks and eventually jailed them ??
The State of
Massachusetts wanted them out and WCM777 ceased promotions and sales there, but otherwise WCM777 has admitted nothing, been charged with nothing and is free to roam wherever they desire.
WCM gets even more bizarre
Ming Xu apparently is backing the guy who may have helped produce that anti-Islam film “Innocence of Muslims” last year and caused massive riots around the world.
In a photo tweeted by Ming Xu on 18th or 19th, he was standing right next to Joseph Nassralla, owner of The Way TV… and Media for Christ, the organization that got the film permit for “Desert Warriors”, the fake name used for the anti-Islam film
Ming Xu claimed no less than “launching ‘The Way TV'”, a channel previously operated by Joseph Nassralla.
You can’t make this **** up!
Next there will be a Fatwa against WCM777. Did you say he was going to Abu Dhabi? Maybe not all that great of an idea.
Osama bin Xu
I doubt they really did. I posted on Glen Ivy Golf Club facebook page the question. They removed my message without responding. They maybe in on it.
I don’t think Ming Xu would spend money where it can be seized. He’s going to disappear leaving no trail to follow.
When I was first looking at this, I decided that the golf course acquisitions were likely real, but now I wonder, how world World Capital Market set about getting a commercial loan on an operating business in California?
From what (very, very) little I know about commercial acquisitions, it seems that it would be very difficult for World Capital Market to meet the myriad of requirements to obtain a loan, let alone get through the due diligence of a purchase.
This was the article that made me think at the Summerly acquisition was real: http://www.pe.com/local-news/riverside-county/lake-elsinore/lake-elsinore-headlines-index/20131010-lake-elsinore-summerly-golf-course-sold.ece , but since then I’ve learned 2 things:
1) anytime you purchase a business, you can call the local paper directly, email them the facts, and they will run the story and
2) World Capital Market is not a “merchant banking firm”.
It would be interesting to see if Glen Ivy responds.
I contacted Glen Ivy. The administrator confirmed that the course had been acquired by World Capital Markets Ltd. She also mentioned something about a Kingdom Club which to me sounded close enough to Ming’s Kingdom Card promotion to make me pretty certain that WCM is the new owner
If WCM had cash from investors it would not need to take out a loan.
Kingdom Club is yet another corporation setup by Ming Xu to separate WCM from direct ownership of assets.
It may be Kingdom Capital, a delaware corporation entity 5310560
I got the impression that Kingdom Club was a loyalty golf card type of thing. The more you purchase with the card the less playing golf costs type of thing. That’s purely a guess, but the administrator said the new owner was World Capital Markets LTd, not Kingdom Club.
No, that’s Kingdom CARD that’s the loyalty card… for regular shopping on Ming Xu’s 1and300(dot)net
The Admin can be mistaken. I thought I read somewhere (here on this website) that somebody who wrote that OTHER golf club said they’re owned by Kingdom Capital (but purchased by WCM)
I have no idea. The Glen Ivy admin told me WCM was the new owner an and that Kingdom Club was a membership program offered by the golf course.
Just musing, but what prohibits a loyalty golf program named Kingdom Club from being incorporated into a loyalty Kingdom card for “regular shopping?”
Buy diapers and gas, accrue Kingdom points useable towards greens fees at Glen Ivy or other golf courses? Its no different from Master Card’s Platinum points which accrue on every purchase and which are useable for cruise ships, motels etc etc.
“Use your Visa and earn American Airline miles is no different than “Use the Kingdom Card and get Glen Ivy Golf Credits is it?
I am pretty sure American even sponsors a Master Card with the picture of an airplane on it which accrued flier points and connects to its in house frequent flier program.
How is it that WCM777 can still have meetings to recruit people in the USA? They had one this weekend in Houston, Tx and in New York. they are going after the Latin Community.
Are you really asking this?
That makes sense, but what happens when a customer asks why it’s called “Kingdom”? Are they going to subtly advertise their cult at the club or just have a sanitized mission statement/sales pitch for normal people?
I can’t see the cult crossing over to the golfers so I will assume the Kingdom Club/Card is somewhat generic in its appeal. Perhaps marketing of the card will be done at check out when paying for greens fees i.e., sign up for our card and get 20% off today’s play etc. and its also good for discounts at other courses and merchants etc. This does not need to interfere with the cult. Its a fairly good idea on its own if the golfers like it.
I am not sure that Kingdom has any connotation that would make anyone wonder or ask. It would not occur to me anyway.