WCM777 Receiver outlines investor claim plans
Those who invested and lost money in WCM777 have had a long wait for updates.
A Receivership was appointed back in March, but other than a report that detailed the extent of Phil Ming Xu’s fraud, things have been pretty quiet.
Behind the scenes though the Receiver has been busy, recovering assets and selling off what Xu accumulated through his various fraudulent ventures.
Now, in a report sent out to WCM777 investors, Receiver Krista Freitag indicates net-loser investors will soon be able to lodge claims.
No date appears on Freitag’s notice, however I believe it was only published sometime in the last few days.
In it, Freitag outlines a brief history of WCM777 post SEC shutdown and then reveals her plans for net-loser claims:
The companies’ records indicate you may be a WCM777 investor. If so, it is imperative you carefully review the following information:
There are many investors who invested money with WCM777 and its affiliates. Each investor will have the opportunity to submit a claim to share in the prospective recovery from the assets of the company (also known as the receivership estate).
The only legitimate process for asserting a claim for prospective recovery from the receivership estate will be a formal claims process conducted by the Receiver with approval from the Court.
A website has been established to provide investors with information about the receivership: (Ozedit: incorrect URL removed). Please check the website regularly for important updates about the case.
All communications will come directly from the Receiver and will be posted on the receivership website. If you receive a communication purporting to be from the Receiver and such communication does not appear on the receivership website, the communication is not from the Receiver.
Note that I believe the first link quoted in the letter might be a typo, as at the time of publication that domain is not registered (unscrupulous lawyer registering said domain in 3…2…1…).
The actual WCM777 Receivership website, quoted correctly later in the notice, is at http://www.worldcapitalmarketreceivership.com.
As with all Ponzi Receivership cases, although the claims process might be just around the corner, actual payouts to victims are still a ways off.
In time, the Receiver will provide information and instructions such that investors can submit claims and evidence of actual payments to the receivership entities. This process, however, must first be approved by the Court.
At this time, the Receiver is still in the process of recovering assets; it is impossible to provide a timeline, but this receivership is complex and it may take considerable time until distributions to investors can be made.
For reference, the SEC shut the Zeek Rewards Ponzi scheme down back in August 2012. It was only a few days ago that the first round of checks were mailed out to net-loser investors.
WCM777 was smaller than Zeek, but it gives you an idea of how long this process can take.
In the meantime Freitag warns,
You may be contacted by others with information or directions about your investments, your claim, or the potential to recover from the receivership estate.
Please be advised that your upline, your leader, other leaders, other investors, former managers and employees of WCM have no authority to take actions on your behalf or with regard to your investments, losses, or claims against the receivership estate.
The Receiver will not ask you to pay money to anyone or to transfer, convert, register or otherwise trade your “points” in a new enterprise.
This would apply especially to those in Brazil. The amount of suspect schemes I’ve seen targeting Brazilian communities post TelexFree is insane.
All sorts of rubbish is flying around so,0 at least with respect to WCM777 claims, take anything anyone says who is not the Receiver with a grain of salt.