Tag Archives: Costa

TelexFree: Status Report and Change in Status Conference

telexfree-logoFilled on June 11th, we have a Combined Interim Status Report, Joint Motion to Adjourn Upcoming Status Conference and for the Exclusion of time under the Speedy Trial Act as it relates to the TelexFree criminal case. Since the last status report, the government has provided the following discovery:

  • Data from Hotmail email accounts for Wanzeler and Costa
  • Data from Apple email for Wanzeler
  • Various recordings made by HSI agents
  • Copies of Search and Seizure Warrants for Amazon Web Services
  • Translated and untranslated interview reports from Brazilian Federal Police
  • Court order on Government’s Motion to Amend Sealing Orders
  • Ernst and Young Forensic Accounting Report
  • Copy of the application package for and order pursuant to 18 United States Code §2703(d) Orders for records from iBasis Inc.(Sealed case)

The Motion goes on to state: “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 to August 14, 2015.”

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 Loses Election Bid

Carlos Costa loses Federal Deputy election bid

telexfree-logoIt was always a bit ridiculous that the owner of a billion dollar Ponzi scheme fancied himself a viable candidate for Federal Deputy… but it was one we had to watch play out nonetheless. Widely seen as an attempt (miscalculated or otherwise) to dodge legal responsibility for his role in TelexFree, over the last few months Carlos Costa has been campaigning for a seat in Brazilian government. The position of Federal Deputy Costa ran for would have seen him elected into the Brazilian senate:

The National Congress is made up of the Chamber of Deputies and of a Federal Senate, and both Houses have fixed terms and cannot be dissolved earlier. Under Brazil’s present Constitution, adopted in 1988, Senators are elected to eight-year terms, and Deputies are elected every four years.

Parliamentary immunity in Brazil doesn’t cover crimes committed prior to election, but the prosecution of a Federal Deputy does bring with it complications over prosecuting Costa as a regular citizen. In any event, Costa ran on the promise of legalizing MLM in Brazil, despite it already being legal. He couldn’t come out and say he wanted to legalize Ponzi schemes, but that was the unspoken undercurrent behind his campaign promises. The elections ran yesterday (Sunday) in Brazil, with Costa running in the electorate of Espírito Santo. With polling booths now closed and the votes tallied up, what sayeth the citizens of Brazil?

[Continue reading…]

(This story is from BehindMLM.com)

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…]

PatrickPretty: Newspaper Story About TelexFree in Brazil

This is a translated story originating from Mikaella Campos, an economics reporter for A Gazeta Newspaper, as posted by her on patrickpretty.com:

 

Telexfree: the big Brazilian fraud

Known as Orion, an investigation by the Federal Police against Telexfree in Espírito Santo (ES) – situated on southeastern of Brazil – was close the company’s headquarters in Vitoria, after concluding that, in addition to pyramid financial, the network acted fraudulently, committing crimes against the financial system and the public economy.

The action was based on determination of the Federal Court for the fulfillment nine search warrants and seizure organization’s offices and the home of its owners.

In injunction, the 1st Criminal Court of Federal Vitoria / ES has decided to suspend all activities Telexfree, registered in Brazil under the name of Ympactus Comercial. Also decreed the sequestration of assets, breach of banking secrecy and tax those involved in the business and the owners were prohibited from leaving the country. Yesterday, in the operation, luxury cars were seized.

The blocking of assets of the company and owners extends to their families. It is the third freezing of assets of those involved. In addition to the accounts being blocked by Justice of Acre, the 4th Court of Tax Enforcement, the ES, a month ago, had already seized the funds for payment of tax debts totaling more than US$ 80 million.

The decision to block the assets of Telexfree and the federal judge was involved Aylton Bonomo Junior. The injunction reaches beyond the Brazilian company partners, six people involved, as American James Mathew Merrill; Jozelia Mirian Sangali, wife of Carlos Costa; Katia Helia Barbosa Wanzeler, Feber Vanzeler de Almeida and Souza, Lyvia Mara Camper Wanzeler and Marilza Wanzeler Machado, Carlos Wanzeler family. These people, according to Justice, participate in Ympactus.

The judge also blocked the assets of the daughter of Carlos Costa, Leticia. “Although initially (Leticia Costa) is not on the quality of investigation, it has been demonstrated, on the topic” II.7.1 “(Das searches and seizures), is reason to suspect that your parent is using your bank account for moving illicit funds. therefore, the corresponding removal of confidentiality must be upheld”, the judge said.

Operation Orion is the result of a joint effort of the federal police, federal prosecutors and the IRS. Investigations are in the final phase and is therefore the union of two investigations which dealt with the ES group can still be accused of acting as a financial agent, commanding a grand scheme to money laundering, tax evasion and conspiracy to promote. If proven irregularities, the sentence may still exceed 10 years imprisonment.

The operation name was chosen because the Egyptian pyramids have been made ??toward three stars of Orion.

At first, the survey evaluates the conduct of two members, but will be considered if other people would also be important parts in the scheme. Criminal investigations began early last year and was in charge of the Civil Police of ES. In August 2013, the investigation was transferred to the PF.

There are more than six months at the request of federal prosecutors, the PF began a new procedure to check the collective sale of securities without the authorization of the Brazilian Securities Commission (CVM), which is equivalent to U.S. SEC.

According to the sheriff for Combating Organized Crime of PF in SSc, Rodrigo De Lucca, were analyzed thousands of documents that prove Telexfree exerted a public company activities.

“The Telexfree created a system for capturing features of securities and created a kind of financial pyramid. She managed to June last year raised more than R$ 1.2 billion only in Brazil”, said the delegate.

In megaoperation worked 50 federal police officers and 18 IRS agents to gather evidence. Besides the offices of Telexfree, searches occurred at the headquarters of Disk Will, a company that was owned by Wanzeler, and also had arms in the United States. Also hit accounting firms. USB sticks, laptops, smartphones and several boxes of documents were seized.

Fraud involving Telexfree has roots in Vitória / ES, but the extent of the damage exceeded the borders of Brazil reaching over one million people worldwide. In Massachusetts, USA, where the company also had headquarters, three charges, and administrative, civil and criminal, against the members of the company on American soil, Carlos Wanzeler (Espirito Santo) and James Merrill (American).

The Federal Court allowed the ES to evidence collected in the USA are used in Brazil to incriminate the owners.

According to the sheriff, Rodrigo De Lucca, with the loan of evidence, the intention is to find out how many people were registered on the network after the blockade in Brazil, occurred on June 18, 2013.

There will also be lending evidence to the Justice of Acre, which is processing a civil action, which paralyzed the activities of Telexfree. The action of Acre has no relation whatsoever with Operation Orion, but was crucial to the collection of materials to support criminal investigations.
To take evidence with the United States, Brazil want to determine the amounts handled by the company after the blockage in Brazil. Possibly, too much money left Brazil illegally.

Estimates of the Securities and Exchange Commission (SEC) Massachusetts – equivalent to the Securities Commission in Brazil – show revenues of almost US$ 1.2 billion from February 2012 until April 2014, when the Telexfree had its prohibited operating in the United States.

“There was the first exchange of information with the United States. We now only awaits the formal request for the evidence to come from there to Brazil. The conclusion of the investigation is very transparent and coincides with U.S. foundations”, said the delegate.

The company’s activities in the U.S. started after June 2013. But even with the ban on registering people in Brazil, representatives of the company inscribed enrolled, issuing contracts with a second Telexfree, based in Nevada.

Both here and in the U.S., the activities are characterized as hybrid Ponzi pyramid. “The company used the VoiP to attract advisers who paid fee to be part of the business. They had an obligation to make daily announcements on free pre-formulated with the promise of profit up to 200% per annum sites”, he adds.

Although federal prosecutors have requested the arrest of Carlos Wanzeler and Carlos Costa, owners of Telexfree, the restrictive measures taken by the Federal Court in the ES were alternatives. They will have to submit monthly Justice ES. However, Espirito Santo was accused Wanzeler in Federal Court in the United States being one of the masterminds of the scheme and can be arrested in Brazil.

A grand jury in the United States denounced Wednesday for nine counts of fraud. A federal detention order was issued in Massachusetts. If the U.S. court ask the Brazil, the arrest may be executed by the Brazilian PF.

Last May, Fantastico, Rede Globo TV’s show, showed that Telexfree continued to work in Brazil. According to lawyer Antonio Carlos de Almeida Castro, also known as “Kakay”, the operation performed yesterday was unnecessary because the company did not work. “MPF did what it thought was necessary, but I do not agree. We want to expedite the investigation and we can not accept this amount of claims against the company. Ideally, everything is in one place. The people who worked at the headquarters of Telexfree preparing documentation for the bankruptcy filing”, said Kakay. At the time of the reportage on Fantastico, Carlos Costa, director of the company, said the employees worked for Telexfree money back for advisers.

» Read more

TelexFree: Translated Story from GLOBO

Thanks to PatrickPretty.com for providing this link:

Federal Police meets search and seizure warrant at the headquarters of Telexfree in Victoria

24/07/2014 – 9:42 a.m. – Updated 24/07/2014 – 15h19

“Operation Orion” broke out on the morning of Thursday (24)

The Federal Police carried nine search warrants and seizure addresses in Greater Victoria linked to Commercial Ympactus, Telexfree company representing the brand in Brazil. “Operation Orion” broke out on the morning of Thursday (24). The warrants were issued by the 1st Federal Criminal Court of Victoria, which also banned the owners and shareholders of the company from leaving the country, besides having to attend monthly to the Federal Court.

Sequestration of assets as current accounts and also properties of the group and people connected to the company was also determined. The investigation began six months ago at the request of the Federal Public Ministry (MPF).
The findings were the responsibility of the Bureau for Combating Organized Crime, Federal Police, with the intention of finding evidence of activities without authorization from the Securities Commission (CVM). This survey incorporated another who was walking in the Federal Police, which apurava financial pyramid crimes.
Besides blocked by Justice of Acre money, more assets on behalf of those involved and also others related to Telexfree companies were found. The new fact of this operation is that the evidence gathered by Brazil will be sent to the United States, which also receive data on that country’s ongoing investigations carried out on American soil.
Besides the action of federal police, the court authorized the participation of Tax auditors Internal Revenue Service of Brazil in the overt phase of the operation. Those responsible for the company can answer for the crimes referred to in Articles 7 and 16 of Law 7492/86, which defines crimes against the national financial system, besides the crime under Article 2, Paragraph IX of Law 1.521/51, which defines crimes and misdemeanors against the economy (financial pyramid).
Altogether, participated in the action 50 federal police officers and 18 auditors Federal.O Revenue operation name alludes to the Great Pyramids of Giza in Egypt Plain, considering that the Egyptian pyramids are perfectly aligned with the constellation Orion.
Employees were working in the company
According to the Federal Police, officers were found in the central office of the company, which might not be working. Some denied that they were working. The general in charge of the building where the works Telexfree followed the work of the Federal Police. He and an employee of the company were heard by the agents. The officials declined to speak.

 

 

PatrickPretty.com: Class Action Plaintiff Calls TelexFree Crew “CROOKS”

Here’s a link to a story on PatrickPretty.com related to a TelexFree class action suit. It is recommended reading!

http://patrickpretty.com/2014/06/26/plaintiff-to-telexfree-crew-youre-all-crooks-and-racketeers-and-carlos-costa-is-the-mastermind/