The Financial and Consumer Services Commission (FCNB) issued an alert to advise New Brunswickers of a potential investment scheme originating in California. The California regulator has issued a Desist and Refrain Order alleging that World Capital Market, also known as WCM777 on social media, has been illegally marketing membership units in its purported online cloud service.
The companies have been placed on FCNB’s online Caution List. The alert follows cease trade orders issued in Massachusetts and California.
“The California investigation highlights several very important red flags that investors should consider before making any investment,” said Jake van der Laan, Director of enforcement at FCNB. “The company appears to have no other business than selling these marketing units and investors have been promised returns of 140% in under a year.”
New Brunswickers who have been approached by these companies or other companies with similar schemes are encouraged to contact FCNB immediately. No investment from New Brunswick has been reported to date.
The Financial and Consumer Services Commission provides protection to consumers and investors from unfair, improper or fraudulent practices. The commission brings together regulatory authorities for securities, insurance, pensions, consumer affairs, co-operatives, credit unions, and loan and trust companies. It is an arm’s-length Crown Corporation self-funded by the fees and assessments paid by the regulated sectors.