Category Archives: TelexFree Brazilian Actions

BehindMLM: Brazil indicts twenty-two TelexFree scammers

Here is a link to an article on BehindMLM.  http://behindmlm.com/companies/telexfree/brazil-indicts-twenty-two-telexfree-scammers/

Mentioned in the indictments are Carlos Wanzeler and Carlos Costa (and their family members) for their roles in TelexFree Brazil.

Thanks Oz for another great article.

From BehindMLM: TelexFree Fined for “Crimes Against the Economy”

TelexFree fined $1.5 million for “crimes against the economy”

telexfree-logoIn another blow to TelexFree’s Brazilian based Ympactus, the company has been fined $1.5 million for “crimes against the economy”.

The fine stems from a National Bureau of Consumer Law (Senacon) investigation, which found Ympactus operated as a “Ponzi pyramid scheme”.

Senacon, a department of Brazil’s Ministry of Justice, claimed Ympactus operated

as a Ponzi pyramid scheme, breached the principle of goof faith and transparency, violated the confidence of consumer protection relations and conducted misleading and abusive promotion of the scheme.

The $1.5 million dollar fine was imposed on April 20th, with Ympactus given 30 days to pay up.

TelexFree’s lawyers in Brazil did not respond to Brazilian media requests for comment.

Late last year the Brazilian state of Acre fined TelexFree $782,512 after ruling it operated a Ponzi scheme. Last month Brazil’s IRS also slugged the scheme with a whopping $130 million dollar tax penalty.

 

TelexFree: Sann Rodrigues Arrested After Posting Bond??

This comes from the “el Nuevo Herald” and is translated from Portuguese.  There may be a few grammatical errors, but the story is very interesting, to say the least! Our thanks to BehindMLM.com for the information.


 

US: Brazilian detain involved in scam

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

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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 Audit by Ernst and Young

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…]

 

BehindMLM: TelexFree VOIP-related Criminal Case Filed in Brazil

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: Carlos Costa Lied to Brazilian IRS?

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…]

 

BehindMLM: Carlos Costa Has Heart Attack

TelexFree owner suffers heart attack

telexfree-logoI can’t even begin to imagine the toll of running a billion dollar global Ponzi scheme must take on the mind. Sleepless nights, the constant looking over your shoulder, having to spew endless excuses on camera to appease your investors and so on.

And when things go kaput, as they did with TelexFree earlier this year, sooner or later things are bound to catch up with you.

Over time, high levels of stress can lead to emotional, psychological, and physical problems, including heart disease, high blood pressure, chest pains, or irregular heartbeats. (WebMD)

For Carlos Costa, one of the three men behind TelexFree, this catching up might have manifested itself by way of an unexpected heart attack. [Continue reading…]

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