14th TelexFree Acre injunction appeal denied
With TelexFree themselves seemingly having exhausted their injunction appeal options over no less than thirteen separate appeals, all unanimously denied, the company’s affiliates have taken up the slack in the hope that they can convince a judge to lift the Acre injunction.
The Acre injunction, granted to Public Prosecutors back in June, prohibits TelexFree from paying affiliates in Brazil or signing up new affiliate investors.
Fifty-two TelexFree affiliates filed an application for an injunction against the Acre injunction. The group of affiliates claimed that the decision to effectively put a stop to TelexFree’s Brazilian operations is illegal because it infringed on their right to participate in the opportunity and earn from it.
By allowing the Acre injunction to remain in place, (the affiliates) also said they run the risk of losing part of the amounts invested in TelexFree, due to the closure of their contracts within the specified period (of twelve months).
They also stressed that the case does not only infringe on their collective rights, but also that of the individual.
With the argument that a Ponzi scheme should be restarted on the basis that affiliate investors are unable to participate (invest and recruit) and get paid being about as flimsy as wet toilet paper, not surprisingly Federal Judge Denise Bonfim denied the appeal.
Judge Bonfim stated that TelexFree is being investigated for running a financial pyramid scheme and, if found guilty, the crime against the economy would make any contracts signed between affiliates and the company illegal.
The magistrate said it is a case of collective interest, because, as the TelexFree network grows, it exponentially increases the financial loss of untold numbers of people and that judicial intervention is a way of protecting the population.
In explaining her decision the magistrate pointed out that the TelexFree case was now sub judice and that a restart of business operations would counteract the judicial process and examination of TelexFree.
The magistrate also indicated a lack of demonstration by the affiliates of a clear legal basis for the appeal, one of the requirements for an injunction to be granted for the purpose of protecting the illegally violated rights violated or claims of abuse of power.
Where to from here?
As reported yesterday, TelexFree are currently experiencing problems paying their affiliates outside of Brazil. After the payment processor Global Payroll Gateway dumped them, the company is now looking to pay affiliates using the services of International Payout Systems Inc.
Meanwhile in Brazil, the company’s prospects are looking as bleak as ever, with charges of money laundering and embezzlement looming over the heads of TelexFree’s owners and top affiliates.