Friday, March 28, 2014

UPDATED BREAKING NEWS: US SEC Charges WCM777 and Phil Ming Xu with multiple Violations, 54 accounts frozen

The SEC alleges that three entities collectively operating under the business names WCM and WCM777 are posing as multi-level marketing companies in the business of selling third-party cloud computing services, which can include website hosting, data storage, and software support.  The entities are based in California and Hong Kong and controlled by “Phil” Ming Xu, who is a resident of Temple City, California.  
According to the SEC’s complaint filed in federal court in Los Angeles, WCM and WCM777 have raised more than $65 million since March 2013 by falsely promising tens of thousands of investors that the return on investment in the cloud services venture would be 100 percent or more in 100 days.  Investors were told they would receive “points” for making investments or enrolling other investors.  The points would be convertible into equity in initial public offerings of high-tech companies their money would help launch.  However, rather than building out cloud services or incubating high-tech companies, Xu and the WCM entities used investor funds to make Ponzi payments of purported investment returns to some investors.  They also spent investor money to purchase golf courses and other U.S.-based properties among other unauthorized expenditures.
There are, currently, no mention of the various reincarnations, such as Kingdom777, Global Unity, or Visinova, or other colleagues such as Harold Zapata and and "Tiger" Liu.

Here's Reuter's report

MLM Skeptic is among the first to investigate the WCM777 scam and the reach of such scam is truly staggering. Please check  the WCM777 tag for previous efforts.

UPDATE: reported that at least 54 different financial accounts have been frozen, and Ming Xu have attempted to put proxies and cronies to lead the companies, but in reality he maintained control. Receiver has been appointed and any and all affiliates and associates are warned NOT to destroy records or you can be charged with contempt of court and/or obstruction of justice.

Accounts have been frozen by SEC in Bank of America, Wells Fargo, Comerica, Merrill Lynch, HSBC, E*Trade, JP Morgan Chase, Citibank, East West Bank, and American Continental.

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