California issued a desist and refrain order against WCM777 and its executives, including CEO Ming Xu, on January 15. This action from the state's Commissioner of Business Oversight followed Massachusetts' earlier ban on the company for selling unregistered securities.

Jann Lynn Owen, Commissioner of Business Oversight for California, issued the order on January 8. It named World Capital Market Inc., WCM777 Inc., WCM777 Limited, Ming Xu, Zhi Liu, and Harold Zapata as respondents.

World Capital Market, Inc. (WCM) maintains its principal place of business at 150 S. Robles Avenue, Suite 900, Pasadena, California. WCM registered in Delaware on March 27, 2012, and claims registration in the British Virgin Islands. Its website, worldcapitalmarket.com, describes WCM as a "merchant banking firm" that acts as a "strategic investor" and "incubates" various companies. WCM777, Inc. and WCM777 Limited operate collectively as "WCM777," a "social marketing" business. Its United States headquarters is at 1218 John Reed Court, City of Industry, California. WCM777, Inc. incorporated in Nevada on March 7, 2013, and dissolved on September 24, 2013. WCM777 claims Hong Kong registration for WCM777 Limited. The company has operated continuously since at least March 7, 2013. WCM777, Inc. and WCM777 Limited are wholly owned subsidiaries of WCM.

Ming Xu holds the position of Chief Executive Officer and Chairman of WCM, and Chairman of WCM777. Xu is also an owner of WCM. Zhi Liu is the Chief Executive Officer of WCM777 and an executive manager at WCM. Harold Zapata is a Director and affiliate of WCM777. Zapata recorded sales pitches for WCM777 on YouTube and identifies himself as "CEO at WCM777 Global Stars" on his LinkedIn profile, stating he "Help[s] People Make Money!"

Since at least March 7, 2013, the respondents solicited the public through websites, webinars, and live presentations. They urged individuals to purchase WCM777 membership units. These units allegedly provided access to WCM777's online cloud services. Purchasers of these units were reportedly paid daily returns over a 100-day period.

The Department of Business Oversight's analysis confirmed the alleged payment structure.