Secretary of State Securities Division Warns Public to Be Wary of Investing in Alleged High-Yield Online Cloud Services
Nevada Secretary of State’s Securities Division seeking potential victims of World Capital Market scheme
FOR IMMEDIATE RELEASE
Contact: Catherine Lu
(702) 486-6982 / 334-7953
(Carson City, NV; March 31, 2013) — Secretary of State Ross Miller is warning potential investors about companies that have already received cease and desist orders from the California Department of Business Oversight and a consent order from the Massachusetts Securities Division. World Capital Market, Inc., WCM777, Inc., and WCM777 Limited are allegedly promoting an unregistered high-return investment scheme to investors who purchase alleged online cloud services at different membership levels.
Purchasers of WCM777 membership units are allegedly paid daily returns in the form of profit-sharing payments, bonuses, and commissions over a 100-day period. The membership levels range from $399 to $1,999, with the promised daily return on investment increasing with the membership level. A purchaser of the $1,999 membership unit would allegedly receive up to $32 per day over a 100-day period, approximately $1,200 more than the original cost of the unit, which purportedly has a 60% return in only 100 days.
According to California’s cease and desist order, WCM777 and WCM had no significant income outside of sales of membership units. The order further sets forth that from March 2013 to the end of September 2013, WCM777 and WCM generated more than $20 million in sales of WCM777 membership units, but neither applied for nor secured a qualification to offer or sell securities in the State of California from the Commission of Business oversight.
The Massachusetts Securities Division also issued a consent order against WCM777, Inc. and World Capital Markets, Inc., ordering the companies to permanently cease future offerings of WCM777 packages. As part of the consent order, the firms agreed to reimburse Massachusetts residents who paid for membership units in an amount equal to the amount paid to WCM777 by the purchaser. Massachusetts residents paid more than $300,000 for WCM777 packages.
“One of the warning signs of fraud is an investment that is sold as high-yield in a short time frame,” said Miller. “Investing with companies or agents should only be done with appropriate due diligence. Investment products must be registered or exempt from registration to be sold in Nevada, and generally those selling an investment must be licensed.”
The Nevada Securities Division records indicate that none of the three entities has registered securities in Nevada. WCM777, Inc. incorporated in the State of Nevada on March 7, 2013 and filed dissolution papers on September 24, 2013.
Residents who have been contacted or solicited by someone claiming to represent World Capital Market or any of its affiliated entities are encouraged to contact the Nevada Securities Division at (702) 486-2440 or by visiting the Securities Center on the Secretary of State’s website at www.nvsos.gov.
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