Archives for Money Laundering

TelexFree: April 2015 Interim Status Report and Change in Conference Schedule

Posted by ASDUpdates on April 19, 2015No Comments

telexfree-logo

Interim Status Report

Since the last status date, the government has produced approximately 45 GB of additional information received as a result of a search warrant executed at an internet service provider. This information consists largely of TelexFree-related YouTube videos and back-up and subscriber data. The government has also produced the contents of a personal email account belonging to defendant James Merrill.
The government recently met with Brazilian prosecutors and law enforcement agents, who are conducting a separate investigation of TelexFree and certain individuals. The Brazilian authorities have produced a large amount of data and will be producing additional materials in the coming weeks. This additional data, mostly derived from multiple search warrants executed in Brazil, will likely amount to 100s of gigabytes. Once the government has received all of the materials from the Brazilian authorities it will copy the materials for the defendant.

Overall, at this stage the following discovery remains to be produced:

• Data contained in two Hotmail email accounts and one Apple email account, also received in response to a search warrant. Production of this material has been delayed by errors in the data as produced by the email providers.
• Data (5-10 TB) received from a cloud-based service that stored data for TelexFree.
• Materials received in mid-March 2015 from the Brazilian authorities. Among other things, this includes a forensic report by Ernst & Young, which was commissioned some time ago by the Brazilian government to opine on whether TelexFree’s operations amounted to a pyramid scheme. (The report is in Portuguese – the government will produce the original and a translation that is currently in process). As noted above, the government expects a substantial additional production from Brazil in mid-April 2015.
• Various recordings made by undercover HSI agents at TelexFree conference and in conversations with a TelexFree promoter.
In light of the above, and in keeping with the Court’s designation of this matter as a “complex case” under 18 U.S.C. s 3161(h)(7)(B)(ii), the government suggests an interim status conference in approximately 60 days. Beyond waiting to receive additional productions from Brazil, the substantial additional data sets, e.g., from the cloud-based provider and the Brazilian government, will take time to process and copy.


Motion to Adjourn Scheduled Status Conference and Exclude the Time Under the Speedy Trial Act

The Court has scheduled a status conference for April 13, 2015. Because discovery is proceeding steadily in this unusually large case, and the parties have been communicating as needed about the production, the parties request that the conference be adjourned to June 12, 2015, or some similar date that is convenient for the Court. Both parties also request that the Court exclude the time from April 13, 2015, through June 12, 2015, from the speedy trial clock, pursuant to Local Rule 112.2(b), the Speedy Trial Act, 18 U.S.C. §§ 3161(h)(7)(A) & 3161(h)(7)(B)(iv), and §§ 5(b)(7)(A), 5(b)(7)(B) & 5(b)(7)(C)(iv) of the Plan for Prompt Disposition of Criminal Cases for the United States District Court for the District of Massachusetts (effective December 2008), on the ground that the ends of justice are served by granting the adjournment and excluding this period, and outweigh the best interests of the public and the defendant in a speedy trial.

An Order was subsequently issued allowing the “exclusion of time pursuant to the below-referenced provision of the Speedy Trial Act from Monday, April 13, 2015 (the date on which the fourth Interim Status Conference was scheduled to occur), through and including Friday, June 12, 2015 (the date of
the fifth Interim Status Conference).”

I have uploaded these documents onto the Files website.

BehindMLM: TelexFree Creditors Named in Bankruptcy Case…..

Posted by ASDUpdates on March 1, 2015No Comments

Once again, OZ from BehindMLM.com has done his usual extraordinary job and has revealed some new information in the TelexFree Bankruptcy case.  The link to it is below.

 


TelexFree financial schedules filed (creditors named)

telexfree-logoAs part of the bankruptcy proceedings initiated by TelexFree’s owners, the company was required to file Schedules of Assets and Liabilities.

Owing the bankruptcy proceedings being initiated in order to dissolve Ponzi ROI liabilities and head off a civil and criminal investigation into the company, these schedules were never filed.

Receiving absolutely no assistance from TelexFree’s owners and due to complications arising from data seized by various agencies investigating the scam, it’s taken some time for the court-appointed Receiver to finally put together an accurate list of TelexFree’s creditors.

Here, for the first time, we get to see a list of not only affiliates who TelexFree owed money too, but also the third-party businesses who got involved with the scam and should have known better.

[Continue reading…]

BehindMLM: TelexFree Audit by Ernst and Young

Posted by ASDUpdates on February 13, 2015No Comments

E&Y audit of TelexFree reveals evidence of Ponzi scheme

telexfree-logoMuch importance has been placed on the Ernst & Young report on TelexFree that was due out this month.

Despite the SEC’s case against TelexFree, criminal proceedings currently taking place against its owners and Trustee Stephen Darr’s damning evaluation of the company earlier this month, many Brazilian investors believed the Ernst & Young audit would somehow absolve the company.

Those hopes appear to have been dashed, with preliminary reports of Ernst & Young reports confirming fraudulent activity has been found.

[Continue reading…]

 

TelexFree: Criminal Case Status Report by USA

Posted by ASDUpdates on February 12, 2015No Comments

On Monday, the USA filed their “Interim Status Report” and a “Joint Motion to Adjourn Upcoming Status Conference”.  The parties want to adjourn the status conference set for today (Feb 12) in light of the report and the unavailability of counsel.telexfree-logo

The Report begins by saying the government has produced around 100 GB of additional information from a database seized back in April 2014 and another 75 GB from a Trustee overseeing TelexFree’s affairs (I am guessing the Bankruptcy Trustee).

Certain materials remain to be produced, either because (a) they are still being processed for electronic production, or (b) the government anticipates receiving the materials from outside sources. As to the former, the government has experienced some delays in processing and producing materials because of technical errors committed by outside vendors and the diversion of resources (paralegals and litigation technical support staff) to the ongoing Marathon bombing litigation.

At this stage, the following discovery remains to be produced:

• Approximately 45 GB of material recently received from Google (YouTube) in response to a search warrant.
• Data contained in two Hotmail email accounts and one Apple email account, also received in response to a search warrant. Production of this material has been delayed by errors in the data as produced by the email providers.
• Data the government anticipates receiving in response to a search warrant submitted to the Court this week.
• In March 2015, the government will receive a large amount of material, both hard copy and electronic, from the Brazilian government. Law enforcement authorities in that country have been independently investigating TelexFree for fraud and securities offenses. TelexFree was partly based in Brazil and had hundreds of thousands of Brazilian investors. Moreover, the third owner of TelexFree (the other two being defendants Merrill and Wanzeler), lives in that country. To date, the Brazilian government has executed about nine search warrants and seized approximately $450,000,000.
• Various recordings made by undercover HSI agents at TelexFree conference and in conversations with a TelexFree promoter.

The US government is suggesting an interim status conference in approximately 60 days, or some other date that reflects their anticipated acquisition of materials from Brazil in March 2015.

BehindMLM: TelexFree VOIP-related Criminal Case Filed in Brazil

Posted by ASDUpdates on January 28, 2015No Comments

New TelexFree criminal case filed over VOIP irregularities

telexfree-logoSure to add to the legal stress TelexFree owners are already currently under, news today that regulators in Brazil have filed another criminal case against the company.

The new case revolves around regulatory issues surrounding TelexFree’s VOIP offering in Brazil, and is the culmination of a criminal investigation that began back in 2013.

[Continue reading…]

BehindMLM: TelexFree’s Sann Rodriguez At It Again?

Posted by ASDUpdates on December 23, 2014No Comments

From BehindMLM.com:

Sannderly Rodrigues violating his TelexFree injunction?

Sannderly Vasconcelos Rodrigues (Sann Rodrigues for short), was one of the top investors in the billion dollar Ponzi scheme, TelexFree.  sann-rodrigues-top-telexfree-investor

For his part in stealing over three million dollars from investors who joined after him, Rodrigues (right) saw himself named as a defendant in an April 2014 SEC complaint.

As part of that case, which is on hold until the criminal case against TelexFree’s founders is concluded, Rodrigues saw himself slapped with a preliminary injunction back in May.

Among other things, this injunction saw Rodrigues ‘ordered to cease conducting any further fraud involving securitiesor otherwise‘.

Today I thought I’d raise the question of whether Rodrigues is meeting this court-ordered obligation.

[Continue reading…]

 

BehindMLM: Carlos Costa Lied to Brazilian IRS?

Posted by ASDUpdates on November 18, 2014No Comments

Carlos Costa lied about Brazilian IRS TelexFree approval

telexfree-logoOne of the recurring themes in Carlos Costa’s sweaty TelexFree news updates, was the assertion that the Brazilian IRS had gone over TelexFree’s books and certified the company legitimate.

carlos-costa-angry-telexfree-bankruptcy-youtube-video-feb-2014Costa asserted as much with the knowledge that the IRS would not comment publicly on their report, and that the only other party with a copy was TelexFree.

What he wasn’t planning on however was the report being leaked to media outlet Globo.

And surprise, surprise… turns out Costa has once again been caught out telling porky pies.

[Continue reading…]

 

PatrickPretty: SEC Official Speaks On TelexFree Case

Posted by ASDUpdates on October 30, 2014No Comments

“We know of at least one victim who borrowed, I think, $50,000 from his mother and gave it all to [TelexFree]. And it was her entire retirement.” Melissa Armstrong, assistant chief litigation counsel, U.S. Securities and Exchange Commission, Oct. 29, 2014

 

Read the story here.

TelexFree: Status Update on Discovery in Criminal Case

Posted by ASDUpdates on October 29, 2014No Comments

Yesterday, the US filed an Interim Status Report, and stated “The government has provided substantial discovery to date, but discovery is not complete. As of the date of this report, the government has produced an electronic database containing most of the data and records the government has collected via subpoena while investigating this case (about 100,000 pages).”

At this stage, the following discovery remains to be produced:

  • About 40 boxes of documents seized from TelexFree’s offices in Marlborough,
    Massachusetts, in April 2014. These materials are being scanned and processed by a
    vendor, a process that will take several weeks.
  • About 81 gigabytes of data (about 355,000 pages) received in October 2014 from the
    Trustee supervising TelexFree’s affairs in bankruptcy.
  • Additional financial records received from the U.S. Securities & Exchange Commission
    pursuant to an access request, and from Homeland Security Investigations, totaling
    approximately 12 boxes of material.
  • The results of five email search warrants served on or about September 25, 2014. As of
    this date, the government has only received materials for one of the email accounts and
    is following up with the other internet service providers.
  • The results of a search warrant served on Google, Inc., on or about October 16, 2014,
    for a substantial amount of video content held by its subsidiary, YouTube. Google has
    reported that compliance will take several weeks.
  • Various recordings made by undercover HSI agents at TelexFree conferences and in
    conversations with a TelexFree promoter.

The government also asks for an an interim status conference in approximately 60 days.

TelexFree: More Of The Usual Nonsense

Posted by ASDUpdates on October 19, 2014No Comments

I wish I could say that this misinformation is something new within the growing Ponzi-scape, but it is not. Every scam under investigation by any Enforcement agency has published claims that they were “cleared of any and all wrongdoing” and since the TelexFree civil and criminal case are still ongoing, the below claim is Baseless Speculation (BS).


(This is translated from Facebook and the original Portuguese)

STRONG Telexfree VICTORY IN THE UNITED STATES

Telexfree FINANCIAL PYRAMID IS NOT.

Our Director Carlos Costa has always had the TOTAL REASON and never lacked the TRUTH of the facts, Telexfree NEVER WAS AND NEVER BE A FINANCIAL PYRAMID.

American Court stated that the company does not practice financial pyramidand appointed a receiver, Stephen B. Darr, who shall initiate the process of bankruptcy, it has autonomy to liquidate or keep running the business.

This request for extension of expertise is a proof that the company is not a financial pyramid.


Neither the Trustee (not receiver) nor the American Courts have stated any such thing, you prevaricating bastard.

Bankruptcy trustee, Stephen Darr, has publicly stated he has no intention or reorganizing or reopening TelexFree, so the Facebook post above is complete “BS”.

If this wasn’t sufficiently nauseating, former Pimps of TelexFree are now trying to herd their former affiliates into a new scam named “iFreeX” so they can once more take their money; I certainly hope former TelexFree affiliates have learned their lesson, but if history is any teacher, I doubt they have.

For more information on this endless promotional idiocy, see PatrickPretty.com for his take on TelexFree and these new developments.