March is Fraud Prevention Month - Caution regarding offers related to WCM777
MONTREAL, March 11, 2014 /CNW Telbec/ - The Autorité des marchés financiers (the "AMF") is warning Québec consumers about an investment scheme marketed under the name "WCM777." The scheme originated in California and is offered mainly as part of hotel presentations and through Internet ads and webinars.
The scheme consists in offering cloud storage packages that promise returns of 60% in 100 days, mostly via referral bonuses and commissions.
Recently, regulators in Massachusetts and California issued cease trade orders against World Capital Market, Inc., WCM777, Inc. and WCM777 Limited and their officers and representatives, Ming Xu, Zhi Liu and Harold Zapata. These orders are intended to put an end to this scheme which, in less than a year, has allegedly caused over 5,500 investors to lose in excess of US$10 million.
World Capital Market, Inc., WCM777, Inc. and WCM777 Limited and their officers and representatives, Ming Xu, Zhi Liu and Harold Zapata, are not registered with the AMF and did not obtain a receipt for a prospectus from the AMF. Consequently, any solicitation of Québec investors by these firms and individuals could violate the Québec Securities Act.
The New Brunswick Financial and Consumer Services Commission has also issued an investor alert in the past few weeks.
If you have responded to solicitations related to WCM777 or any similar scheme, please contact an officer at our Information Centre.
Reminder to investors
As part of Fraud Prevention Month, the AMF reminds consumers that it is important to ask themselves 5 questions (5 bonnes questions - in French only) before entrusting their savings to a person who solicits them, especially when promised a return that is too good to be true, as in this case.
The Autorité des marchés financiers (the "AMF") is the regulatory and oversight body for Québec's financial sector.
SOURCE Autorité des marchés financiersFor further information: