Following a similar alert from New Brunswick’s Financial and Consumer Services Commission, Quebec’s Autorité des marchés financiers (AMF) is also warning investors about an online scheme known as WCM777.

The Quebec regulator notes that regulators in Massachusetts and California recently issued cease trade orders against World Capital Market, Inc., WCM777, Inc. and WCM777 Ltd., and their officers and representatives, Ming Xu, Zhi Liu and Harold Zapata.

“These orders are intended to put an end to this scheme which, in less than a year, has allegedly caused over 5,500 investors to lose in excess of US$10 million,” the AMF reports.

The scheme, which originated in California and is offered largely through seminars, Internet ads and webinars, promises returns of 60% in 100 days, mostly via referral bonuses and commissions, the AMF says.

The AMF also notes that the firms and individuals that have been cease traded in Massachusetts and California are not registered in Quebec, and haven’t issued a prospectus there either, so investor solicitations by them could violate the Quebec Securities Act.