Phil Ming Xu began diverting investor deposits to Hong Kong in October 2013, facing an SEC investigation into his WCM777 Ponzi empire. The SEC's complaint against Xu states that WCM777 stopped depositing investor funds into its United States bank accounts around that time, even as the scheme continued. Over $37 million from investors was subsequently channeled into the company's Hong Kong bank accounts.
The appointed Receivership faces an unclear path to recover these funds from Hong Kong. However, Global Unity affiliates publicly claimed their operations were safe from US regulation. In the "Leaders Online" Facebook group, Global Unity affiliates reassured investors after news of the WCM777 shutdown.
Santi Fuentes, a Global Unity affiliate investor, wrote that messages from Hong Kong leaders were positive. He claimed the new team managing the company from Hong Kong operated with more professionalism. Fuentes stated Global Unity would not close, would continue its activity, and would maintain its payment plan.
According to the Hong Kong update Fuentes relayed, Kingdomtrade would not operate, and any points on its page would return to ewallets or UnityCards. He also asserted that the SEC's jurisdiction was "only for USA," and since the company did not currently operate in the USA, the rest of the world could continue its activity.
The identity of Global Unity's operators in Hong Kong remains a mystery. Phil Ming Xu claimed on March 15th to have sold Global Unity, the third version of WCM777, to a new buyer. Beyond some South American Ponzi promoters, no specific individuals have been publicly associated with the company on the Hong Kong side.
Xu also alleged that his partner, Zhi "Tiger" Liu, absconded with $30 million in WCM777 affiliate investor funds. Liu's current whereabouts are unknown. It is possible Liu is running or working directly with those operating the Hong Kong backend of Global Unity. Xu claimed Liu controlled a significant portion of WCM777's assets. The SEC identified Xu as a signatory on all known bank accounts, suggesting Liu's control may have extended to the company's Hong Kong accounts.
This situation echoes the Zeek Rewards collapse, where former affiliates, having experienced fraudulent Ponzi returns, struggled to abandon the business model. Global Unity affiliates continue to promote their opportunity globally.