SEC shuts cloud computing scam targeting Asians, Hispanics
Published on Mar 29, 2014 3:27 AM
(REUTERS) - The US Securities and Exchange Commission on Friday said it has shut down a worldwide pyramid scheme that falsely promised fast gains to tens of thousands of Asian-American, Hispanic and foreign investors from cloud computing services.
A federal judge on Thursday granted the regulator's request for an asset freeze over entities operating as WCM and WCM777, which are based near Los Angeles and in Hong Kong and run by Ming Xu of Temple City, California.
WCM and WCM777 allegedly raised more than US$65 million (S$81.8 million) since March 2013 by promising people they could double their money in 100 days by investing between US$399 and US$1,999 in cloud services such as website hosting, data storage and software support.
According to the SEC, investors were told they could parlay"points" they got for making investments or enrolling other investors into stakes in initial public offerings of 300 high-tech companies that the WCM entities were incubating.
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