The Watford Corp Ponzi scheme has collapsed.
As part of their exit-scam, Watford Corp’s anonymous admins have put up what appears to be a fake SEC website closure notice.
Sometime over the past few days Watford Corp’s website was pulled offline.
In its place the following message has been put up:
I’ve been covering the MLM industry for over ten years now. I’ve reported on numerous SEC civil actions against MLM Ponzi schemes.
Not once have I seen the regulator seize control of an MLM company’s website domain.
Where criminal seizures have taken place (non-MLM), there is typically information provided relating to the seizure.
If anything, the seemingly fake notice Watford Corp has put up reeks of being cobbled together by a non-native English speaker.
Let’s start with the message text;
To the Securities and Exchange Commission it seems that the public interest and Investor protection requires the suspension of trading in securities. Inc. (“Watford LLC”) out of concerns about the adequacy and accuracy of publicly available information about Watford LLC, including its financial condition and operations, if any, in light of the lack of stock listing on the NASDAQ communications service issuer whose share price has risen during the ongoing COVID-19 pandemic.
The Commission believes that the public interest and investor protection demand the suspension of trading in the securities of the above company.
THEREFORE, ORDERED in accordance with Section 12 (k) of the Stock Exchange. Law of 1934, according to which trading in the securities of the above company is suspended.
The language itself is awkward. To a native speaker, it reads like a messy cobbling together of otherwise coherent sentences.
And then there’s the claims themselves.
- Watford Corp has never been registered with the SEC.
- Watford Corp has never had a stock listing on NASDAQ.
- There is no “Stock Exchange Law (1934)”.
I believe the law Watford Corp’s admins have tried to reference is the Securities and Exchange Act. Which doesn’t apply because, as stated, Watford Corp has never been publicly traded.
The use of multiple regulatory logos, two of which represent the SEC, is also a red flag.
The website notice was accompanied by a September 28th video, uploaded to the official Watford Corp YouTube channel:
In the video the actor playing Richard Watford, Watford Corp’s fictional founder, reads a prepared statement written in broken English.
[0:31] It is worth mentioning that the company registration procedure in the SEC is negatively affect our holding operation as a whole, and slow down its growth and development.
Nobody who natively speaks English put that script together.
The Watford actor goes on to claim that Watford Corp “work with securities”, but “cannot meet the SEC requirements”.
If he’s talking about securities law, said requirements would require Watford Corp to disclose audited financial reports, proving the use of external funds to pay returns.
Whilst simultaneously claiming Watford Corp has “acted strictly within the laws”, Watford states securities regulation is “unfair and unlawful”.
The actor goes on to state Watford Corp intends to file a counterclaim against the SEC (no evidence of an SEC lawsuit exists).
To avoid being called out on their bullshit, viewer comments on Watford Corp’s video have been disabled. For reference, Watford Corp has been committing securities fraud since it launched last year.
On a technical level, Watford Corp’s website domain still uses CloudFlare name-servers. The domain registration itself hasn’t changed since July 2019.
Had US regulators actually seized the domain, both of these details would have been updated to reflect that.
Putting all of this together, the conclusion is simple; Watford Corp collapsed and its admins have done a runner.
In Watford Corp’s marketing material, such as the video linked to above, Richard Watford is played by an actor with a British accent.
Outside of staged marketing videos, Richard Watford as represented doesn’t exist.
All of that said, Alexa currently estimates that 43% of Watford Corp’s website traffic originates out of the US.
Given Watford Corp’s relatively high overall traffic rank (in the 15,000s), it’s not out of the question for it to be on the US regulatory radar.
Based on the message presented on Watford Corp’s website however, I’m not buying it.
I’ve run a search on Pacer to check if there’s any federal lawsuits involving Watford Corp or Richard Watford. None exist.
Pending any further information surfacing, stay tuned… else chalk Watford Corp up as yet another MLM Ponzi “sorry for your loss” bust.