TelexFree exit strategy thwarted, millions recovered

15-million-USD-cashiers-check-telefree-llc-april-2014

telexfree-logoAs agents from the FBI, Department of Homeland Security and Immigration and Customs Enforcement burst through the door of TelexFree’s Massachusetts head office, Joe Craft looked up from his laptop.

“They’re early”.

Craft had been running his laptop day and night in anticipation of a raid, deleting the mile-long paper trail that he hoped would throw regulators off the scent.

Realizing he was out of time, Craft slammed the laptop case shut and began scooping up the checks he’d written into the black sports bag he’d kept under his desk.

This is what they’d rehearsed and early or not, it was going to work. It had to. [Continue reading...]


SEC file “illegal pyramid scheme” case against TelexFree

SEC-complaint-against-telexfree-15th-april-2014

telexfree-logoHot on the heels of the Massachusetts Securities Division alleging TelexFree to be a $1 billion dollar Ponzi scheme, now comes a new complaint from the SEC.

Filed on the 15th of April in a Massachusetts District Court, the SEC have named eight defendants in the case, and have grouped them into three distinct categories:

  • The company – TelexFree
  • Four principals (owners and employees) – James Merril, Carlos Wanzeler, Steve Labriola and Joseph Craft
  • Four primary promoters – Faith Sloan, Randy Crosby, Santiago de la Rosa and Sann Rodrigues

Noticeably absent from the list is Carlos Costa, the third owner (principal) of TelexFree. [Continue reading...]


iPayout hint at TelexFree money laundering?

telexfree-logoLate yesterday we reported on iPayout disabling the ewallet services they were providing to TelexFree.

Since then, some interesting developments have come to light. [Continue reading...]


Rwandan TelexFree affiliates mull legal action

telexfree-logoIn contrast to US TelexFree affiliate leaders busying themselves censoring social media groups of factual information and demanding artificial positivism from those who invested under them, Rwandan Telexfree affiliate leaders are considering legal action against the company.

The news comes as yesterday Rwandan affiliates called on their government to intervene and recover losses incurred by Rwandan TelexFree affiliate investors. Estimates peg the total amount at stake is 44 billion RWF, or $65 million USD. [Continue reading...]


Will Smith used to promote Paymony?

paymony-logoIn what is definitely one of the more bizarre attempts I’ve seen to legitimize an otherwise questionable opportunity, it would seem Paymony affiliates are trying to assert that Will Smith has joined the scheme.

Published on the “Unitel Association” website, the promo is titled “Will Smith in Paymony in mind and heart”, and features a photo of Will Smith with some unidentified men: [Continue reading...]


TelexFree top Ponzi pimp claims he’s a victim

telexfree-logoOne of the more dangerous side-effects of making a lot of money in Ponzi schemes, is the blowback you get from your downline when the scheme inevitably collapses.

An old-hand at scamming people in such schemes, Sann Rodrigues, being TelexFree’s top Ponzi pimp, is arguably now in the most dangerous position of all.

His exit strategy?

“I’m a victim just like you guys!” [Continue reading...]


iPayout disable TelexFree ewallet services

telexfree-logoJust a brief update on this (working on some lengthier articles for later publication).

Earlier today TelexFree’s payment processor, iPayout, pulled the company’s ewallet services offline. [Continue reading...]


Dept of Homeland Security raid TelexFree office

department-of-homeland-security-raid-telexfree-office

telexfree-logoOver the past twenty-four hours I’ve been seeing a lot of genuine concerns raised by TelexFree affiliates being answered with the proclamation that tommorow April the 17th, the company will be given permission to restart business operations.

Mostly pushed by Portuguese speaking TelexFree affiliates, social media related to TelexFree has been flooded with claims like this:

Santiago D Apostle: the motion for Chapter 11 bankruptcy is approved… and the company is given the chance to reorganize and restructure inspite of the SECs complaint filed against TelexFREE.

The root of the blatant misrepresentation of what was actually granted is an order granting TelexFree a “shortened time” to hear their “first day motions and applications” in the case. The hearing has been scheduled for April 17th at 1:30pm, with the order signed off on by Judge August B. Landis.

The problem?

All signs point to the Massachusetts Securities Division stopping the application dead in its tracks. [Continue reading...]


Massachusetts charge TelexFree as “billion dollar Ponzi”

sec-complaint-header-telexfree

telexfree-logoEver since the SEC investigation into TelexFree was officially confirmed, I’ve found myself repeatedly pointing out to disillusioned TelexFree affiliates that the running of a Ponzi scheme for nearly two years cannot be negated by cosmetic product changes.

Nor can it be erased by a “too little too late” compensation plan change.

Hell, not even a shutdown and filing for Chapter 11 bankruptcy can wash the stink of what Carlos Wanzeler, Carlos Costa and Jim Merril have spread over the MLM industry.

And now, having concluded their investigation into TelexFree – the Massachusetts Securities Division has finally played their hand and agreed. TelexFree is a “billion dollar Ponzi scheme”. [Continue reading...]


Labriola: TelexFree bankruptcy “the most awesome thing”

telexfree-logoIn the wake of TelexFree’s emergency filing for Chapter 11 bankruptcy over the weekend, Steve Labriola was once again abandoned by TelexFree’s owners and left to face the company’s affiliates alone.

Appearing telephonically on a hastily announced call and sounding more spectator than corporate management, Labriola tried to appease TelexFree affiliates with what little information he had.

There are tons of questions out there I know, and I don’t have all of the documentation back from our lawyers on the things that I can and can’t say.

All I can tell you is that the Chapter 11 we filed was to help us reboot, rebuild and reformat our company, so we can move forward and build.

This is what we want as a team. This is what we want as a corporation and this is what all of you will see will be the best thing going forward.

TelexFree’s CEO in hiding Stuart Macmillan was absent from the call, with Labriola stating this was conveniently due to his being “on a plane, heading down to meet with the new platform company”.

Right. [Continue reading...]