Phil Ming Xu, operator of the WCM777 Ponzi scheme, recently rebranded the company as Kingdom777. He then issued a directive on January 7, 2014, blaming affiliates for misrepresenting WCM777's operations. This move followed an earlier announcement about plans to register Kingdom777 stock with the SEC.
Typically, when a large Ponzi scheme faces regulatory scrutiny, its owners either disappear or shift blame. Xu chose both options. He first renamed the company, then promptly distanced Kingdom777 from any wrongdoing, attributing failures to the affiliates' promotional tactics.
The "Announcement of innovations, rules and procedures" from Kingdom777 stated, "Some members failed to represent WCM777 correctly and distorted our vision and mission to be a social capital company whose goal is to build a global community of trust and love." The company claimed to be "solely a social capital company, which adopts MLM only as a marketing strategy but does not make MLM its primary business nor purpose." This statement came after WCM777 accepted significant investments from affiliates worldwide.
Kingdom777 then implemented new compliance measures. It strictly prohibited affiliates from creating domains, websites, blogs, chats, or videos using names like WCM777, WCM Kingdom, Kingdom777, or similar terms. Affiliates also could not use images or printed materials that alluded to quick wealth or luxury.
The company demanded the removal of all existing promotional content that referenced WCM or WCM777 from the internet by January 31, 2014. Kingdom777 warned that members failing to comply would face suspension, blocking, or expulsion from the distributor network. New codes of conduct and procedures would oversee and apply penalties for infringements.