Carlos Costa: “God used me” to create TelexFree
If I’ve learnt one thing over the past year it’s that if you want to launch a Ponzi scheme targeting South Americans, you definitely need to have the “god factor”.
Forget speaking Spanish or Portuguese, forget having a local presence, forget even having a business model that makes financial sense, as long as you profess that god sent you there’s a seemingly endless queue of South Americans waiting to throw their life savings at you.
These people don’t give a damn where the money you promise them comes from and, particularly once the “god factor” has been established, they’re also inclined to believe anything you say.
Speaking at the Legislative Assembly of Acre, by invitation of State Representative Moses Diniz (a TelexFree affiliate inevstor), Carlos Costa declared that “god used him” to create TelexFree and that “nobody will take it” away from him.
Really, god used Costa to start up a multi-million dollar Ponzi scheme that will inevitably collapse and fleece thousands of people of their money? Mmmmhmmm…
Costa’s declaration comes on the back of fellow Ponzi schemer Phil Ming Xu using Christ the Redeemer imagery to pimp WCM777 back in June. The extent religion plays in Xu’s “Christian appeal” marketing efforts can be seen on his Twitter account, which is flooded daily with religiously themed tweets:
Earlier this month Xu also accepted a giant Jesus sword at a religious event, proudly brandishing it He-man style for the cameras:
Whether Xu shares Costa’s “nobody will take my Ponzi scheme away” sentiment is unclear. Still, any SEC agents who are possibly thinking of confronting Xu might want to bring a few riot shields with them. Y’know, just in case.
In addition to declaring God to be behind TelexFree, Costa also presented the Legislative Assembly with some rather bizarre arguments in defense of the scheme.
Costa compared the Telexfree business with companies like Google and Facebook, claiming that such companies “only sell communication and entertainment,” but they are not closed for justice, unlike Telexfree which he sells a service of Voip.
Telexfree sells Voip, which is a conversation system by IP. Facebook and Google are 50 times larger than Telexfree and only sell communication and entertainment, have no product, are billionaires and no one closes the two.
Huh?
As far as I’m aware of, neither Google or Facebook accept investments from affiliates and guarantee a $20 a week ROI if they spam the internet.
Meanwhile why Costa mentions neither company having “no product” is a mystery. The product issue in regards to TelexFree is a problem specific to MLM companies.
TelexFree do indeed offer a VOIP service, however it clearly serves as nothing more than a front for affiliate investment – which is the primary contributing revenue source for the company’s $20 a week ROIs.
Costa’s argument gets even more strange when you consider a November 15th TelexFree conference call, during which Steve Labriola (representing TelexFree in the US) advised
TelexFree members who wish to maintain their position in the “program” and are nearing their one-year anniversary dates will receive an invoice from the company for 20 percent of their program “income” and must pay it within 10 days.
“On all the existing contracts, there is a 20 percent renewal fee, which will be based on your income generated from the previous year”.
Disguised here as an annual “renewal fee”, mandatory re-investment is a common tactic of Ponzi schemes to trap as much real money in the system as possible.
Facebook and Google also charge their affiliates an annual re-investment renewal fee, so why hasn’t anyone shut the… oh wait, no they don’t.
In other TelexFree news, there was a bit of an uproar in Brazil after broadcaster Globo aired a television show that appeared to associate TelexFree’s logo with banking fraud:
What you’re looking at above is a male character attempting to access somebody else’s bank account. TelexFree’s logo appears on the top left of the screen, underneath the fictitious bank “Inter Accounts”.
This sparked calls for litigation against Globo from TelexFree affiliates, which then appears to have led to the uncovering of TelexFree’s logo being ripped off from the 2010 Badminton World Federation Championships event:
TelexFree’s website domain was created in January of 2012, with the investment scheme launching shortly thereafter.
Both logos look pretty similar to me, although I suppose one can hardly blame Costa and his fellow TelexFree owners for that oversight. God’s probably responsible for that too…
Great posting OZ, that pretty much sums it up what happens over here.
Poor God, became the biggest “laranja” of all Ponzis.
One more thing… just listen to this recording of Steve Labriola’s voice: http://www.screencast.com/t/DQrl7n7X
Go directly to 18 minutes 30 seconds. You can listen him say that TelexFree announced something like a “partnership” with the US four major mobile phone carriers (Verizon, AT&T, Sprint, T-Mobile). This announcement was made during the Extravaganza meeting, less than a month ago.
But right after that he tells to “never, ever, ever” PRINT these four companies names!! He says it’s ok to say it, but not to have this information printed on text. He says these companies “don’t want to see their names printed” until a point where TelexFree reaches 1 million customers, which he thinks is possible.
By writing this comment, I am already doing the opposite, lol.
But anyway, why does he say that? The reason is simple: he doesn’t want anybody to contact these companies directly and check if there is really a partnership with TelexFree.
Imagine the situation: suddenly these companies start to receive thousands of calls and in almost every call people are asking “is it true that you have a partnership with TelexFree?”.
Once these companies know what TelexFree is involved in, they would release a public note denying it. And this is what Labriola wants to avoid. This happened when TelexFree announced an insurance contract earlier this year, and it was a big shame!
I already visited these carriers’ websites, but I was unable to find a contact other than by telephone 🙁
I just found a video of the Extravaganza meeting in the US, showing Carlos Wanzeler announcing it. Main part begins at 5 minutes 30 seconds.
He mentions all four companies names. But TelexFree does not have it written anywhere. Maybe this video is the only confirmation of this announcement.
Is there any way to contact these companies and confirm this?
Using “God” to con people is (sadly) nothing new. But, it still pisses me off that these scam scum use it to take people’s money. I never believed Andy Bowdoin when he told people that God had made him a “money magnet”.
One thing though, someday, they will have to explain themselves to the guy they claimed they worked for.
as they say in the movie “Tron”
“Great. Another religious nut.”
Oz, I think another separate post should be done for the fake logo. I say that because a post with a title that would make direct reference to this would be easier to find on search engines.
Here are some videos where “Telexfree” logo can be seen in the badminton competition. Telexfree distributors are wrongly saying the Telexfree logo was made before 2010, which is NOT true, because it was only released by Telexfree in 2012.
The logo was created by Mr. Yawata, especifically for the Badminton championship.
I included the logo thing as an aside here as I didn’t think there was enough to do a separate writeup on. As you mentioned with the dates, it’s an obvious case of TF ripping off the logo as the badminton tournament took place two years prior.
He probably hooked up with some other mobile MLM reseller like Lightning Wireless or… uh, what was that other one?
Next it will be the Nike Swoosh.
Thought we might need some illistrations for those that just aren’t getting it.
There once was a husband and wife. The husband was good and kind and told her often of how much he loved her. The wife adored her husband and although she trusted him she had a feeling that somthing was wrong. She decided to come home early one evening from work only to find her husband in bed with another woman.
When she asked him what the !@#$$ he was doing with another woman in her bed???? he replied “what woman”?… The wife watched as the woman who wasn’t there got dressed. The husband then yelled at his wife… “you said you had yoga class tonight. What are you doing home so early?” “Ah..you can never commit to anything”
What do Rob Ford, (the Mayor of Toronto, Canada), who’s made a display of the most spectacular “ass” of himself in public, first denying “crack smoking” allegations and alcohol abuse only later to admit it was true…
He says now…I guess I did smoked crack in one of my drunken binges…Just because I’m a drunk and do “illegal” drugs that the “average” person would go to jail for ….
And on top of that??? I’m special, and I’m not going to respect the people I serve or honor the position I hold and step down and give up my Mayoral position because you little people are to stupid to understand… I’m teriffic and am going to run for Mayor again since I know you sheep will vote for me again ) baaaaa
and Carlos Costa and the husband have in common????
A superiority complex.
Caught in the act? They feel, or know, that they are above the common person. They know they can manipulate you in such a way that you will freely open your wallets. You say to yourself, “they are such nice guys”…and they are actually taking time to talk with me?….to manipulate you……
So when you Telexfree “sheeple” baaa telexfaaaaareeeee 100%….along with your money….you’ve given any ounce of self respect away….These types of characters just have no concience. As Carlos steps into his cool pool at the end of the day….he’s smiling and says…..thaaaaaaaaank you!
(your up lines are saaaaaaa ying the same thing)Collect your little money because it’s makin my life…..AAAAAwsome!!!!!
Who’s life are they changing???? Perhaps the top people but not going to be you my retired person or waitress or poor person or secretary or police officer or …what ever…These people travel in packs like wolves from one scheme to another.
Use the internet and do research. When they say “Awsome” they aint kidden anyone but..YOU!
Oz, now I believe the following info is going to give enough material for a separate post on the logo subject:
The company responsible for the badminton tournament logo is Taïo Design Consulting. Check its website: http://www.taiodesign.fr/
Check specially the “events” section to see examples of that logo being used in 2010, and also the “who?” section, with the CV of Jérôme Risoli, Taïo owner, in a button to the right. In his CV one reads clearly:
– World Championships in Badminton – Paris 2o1o (creation of the visual identity, decoration & signage)
Today, I sent Mr. Risoli an e-mail explaining it and here is his response:
TelexFree, fearing accusations of plagiarism, started to worry as the story surfaced, and today they released a video
Result: they are hurrying up to announce a new logo before being accused of plagiarism by the Badminton World Federation! And the voice in the video mentions nothing about the ripped off logo, and instead it says TelexFree is getting “faster, modern” and that this is the real reason for the logo change.
Simply ridiculous.
Lol that was fast!
Let’s see what new logo they come up with first…
Yep, that’s right. Let’s see.
In the meanwhile, I suggest you to also send Mr. Jérôme Risoli an e-mail. He was kind to respond me, faster than I imagined. This way you can check information yourself.
Of course I don’t need to tell you that, you know what to do. 🙂
Great reporting, Mauricio Gomes.
In other news, a submcommittee in Brazilian Parliament that’s trying to write MLM related legislation, is putting forth a proposal to REQUIRE 70% of company revenue to be derived from actual product retail
http://exame.abril.com.br/brasil/noticias/marketing-multinivel-so-se-70-do-dinheiro-vier-do-produto
Maybe I read it wrong. It probably should read 7 out of 10 dollars earned by affiliates? Google translate is mixing up the sentences…
K. Chang, you are correct sir. They are trying to secure this measure (70% of revenue MUST come from sales to customers [non-affiliates]).
The percentage is still being discussed, however.
I have read elsewhere that BBOM is back in business – however, affiliates’ revenue will come only from sales. Some of the affiliates are PISSED: “I did not join BBOM to sell anything”.
You guys are better investigators than the people doing this kind of job. I wish I could show my brother and his wife this. But you know what? Somehow I got the feeling they wouldn’t care. They are making money and that is all they care about right now. If it goes away, they will sign up into another.
I did advised them about Zeek and when the s***t hit the fan they even got mad at me and did not talk to me for a couple of months. So, I’m not getting involved this one time.
Is funny that you mentioned the comparison about Google and FB because just a few days ago my brother posted on his page a comment with the same “logic” so this must be something they use on their brain wash meetings they hold every week.
Yes, affiliates meet every week much like a church member would. They also use God a lot. And they do target the Hispanics.
I have been reading about Ponzi scams for 5 months now. I have found out that several of my acquaintainces are affiliated to TelexFree, Mary Kay, Herbalife, Monavie, etc.
It hurts to see people you know and live with get conned with these fabricated, conveniently constructed lies; hurts even more when you see them sign up knowing of how these things work.
You need to read my “cult sales” blog posts. 🙂
http://amlmskeptic.blogspot.com/2013/11/17-signs-that-youre-in-sales-cult-or.html
http://amlmskeptic.blogspot.com/2013/11/even-more-signs-you-are-in-sales-cult.html
It seems Telexfree is changing its logo after the real origin of the old logo came to the public:
(Ozedit: see video in comment #11)
The video shows a message WAIT and then shows a blur effect covering what seems to be Telexfree’s new logo, to be revealed in the next days
It’s unbelievable! You need to see this.
TelexFREE gets license to “Telecom Services” in the U.S.
http://licensing.fcc.gov/cgi-bin/ws.exe/prod/ib/forms/reports/swr031b.hts?q_set=V_SITE_ANTENNA_FREQ.file_numberC/File+Number/%3D/ITC2142013082200236&prepare=&column=V_SITE_ANTENNA_FREQ.file_numberC/File+Number
daSilvaEdison
OH NO !!!!!
Not Joseph Isaacs again
The explanation is too long for a blog such as this.
Instead, Google “Joe Isaacs + FHTM”
Wow!…the SEC should hire all of you instead. I guess bureaucracy gets in the way when getting a job done and obtaining results pronto.
I found this quote interesting from one of the pages when I Googled Joseph Isaacs + FHTM.
This is the kind of crap my family talks about constantly. It must be the same motivational talk they get because they are always saying you will be rich only if you set your mind to it.
Unfortunately the head of sales in these things is interested in only one thing…a bloodless, thoughtless sales force wearing blinders and focused on a single purpose. Sell. No rules. No conscience, no ethics. Just sell.
The message is like Demerol to the brain.
WTF… This is definitely *the* Joe Isaacs… same address and everything!
Here’s the lawsuit FHTM sued him with:
images.bimedia(dot)net/documents/isaacscomplaint.pdf
Note the same address.
ISG Telecom is a “consulting business”. I’m showing multiple “companies” registered to the same address, at least one lists Joe Isaacs as regulatory officer
* Voice Steam
* Voxbeam (not Voxbras)
* 3 Voice (revoked)
* Fibernetics (?)
isgtelecom(dot)com/rates
Somebody is trying to get a piece of paper to make them look legitimate. I seriously doubt that TelexFree intend to offer ANY SERVICE.
What coincidence! (or not?)
Nah, this is what’s known as the “human flesh search engine”. 🙂 i.e. a bunch of amateur sleuths each knowing something that others may not.
http://en.wikipedia.org/wiki/Human_flesh_search_engine
There is an expression in Chinese… 3 cobblers together are better than one genius. Crowd-source intelligence gathering is very powerful.
Maybe that’s what Nehra was talking about when he said TelexFree’s “legal”… He told them to get a real FCC license!
Will Telexfree still get shutdown even though they are getting more products?
“Getting more products” doesn’t negate the running of a Ponzi scheme.
Having products or not was never the issue, it’s the flow of money through TelexFree that is. Affiliates invest and the company uses that money to pay out existing affiliate investors.
One product, a hundred products it doesn’t matter – the core business model doesn’t change. And it’s not going to either, TelexFree rejected the Acre Public Prosecutor’s proposal that they shut down their Ponzi scheme and start up a new legit business.
OK…that doesn’t make sense why even consider getting more products if it doesn’t matter? What is their goal in all of this? I would assume James has made plenty of money by now.
Why do they feel the need to continue? Is it because they believe the US would handle the case the same way as Brazil?
The same as it’s always been: To keep new affiliates investing for as long as possible.
Although some Ponzi operators might launch with an exit plan, I think it gets a point where shutting down would cause such an uproar they just decide to keep things going. Zeek Rewards was a pretty good example of that.
They ran it to the end, despite the regulatory writing on the wall for a few months prior. TelexFree is even worse as there’s been no attempt at all to hide the Ponzi. You invest and they give you $20 a week.
Who knows what goes through their minds, maybe TelexFree really do think they can legalise Ponzi schemes in Brazil.
Is any body SELLING the products? (Apparently not)
They are prohibited from selling the “products” in Brazil.
Disturbances in society are never more fearful than when those who are stirring up the trouble can use the pretext of religion to mask their true designs.
TelexFree was one of the worst financial pyramid disasters in recent times! Over 1 million Brazilians participated in the scheme, many were left broke and some even committed suicide!
Don’t even want to start talking about the damage this scam caused to the MLM industry…