$2.5M default judgment sought against Telex Mobile & TelexElectric
According to records prepared by disgraced accountant Joseph Craft, TelexFree transferred $500,870 to Telex Mobile and $2.02 million to TelexElectric between 2012 to 2014.
For all intents and purposes Telex Mobile and TelexElectric were shell companies owned by Carlos Wanzeler and James Merrill.
Arguing that neither company provided any services to TelexFree in exchange for the transfer of funds, the SEC has filed for default judgment.
TelexFree Mobile and TelexElectric are relief defendants in the SEC’s 2014 TelexFree lawsuit.
As of August 2018 neither TelexMobile or TelexElectric had opted to defend the SEC’s action.
This prompted the regulator to file for an entry of default on August 9th, which was made by the court clerk on August 13th.
The SEC’s Motion for Default Judgment was filed on September 12th and is awaiting a decision.
Update 7th November 2018 – On November 2nd the SEC was granted Final Judgment agaisnt TelexElectric ($2.02 million) and Telex Mobile Holdings ($500,870).
The SEC being a regulator was negligent in first of all to detect the mess and the dangers Ponzi schemes offer to the unsuspecting victims.
Just the moment a Ponzi scheme rears its ugly head and before the damage is made, SEC should be in position to detect the risk.
Why is it not a requirement that every business in the US engaging in MLM should apply and register after fulfilling some due diligence aspects of sorts?
As for me I joined Telexfree because it looked very legally established and at one time when it started sponsoring a Soccer club in Brazil called Botofogo.
SO NO ONE would think this undertaking was a fraud! We shall continue to somehow blame SEC partly for our woos.
Sorry to rain on your “ebil gubmint” parade but you’ll recall it was the SEC that shut TelexFree down in 2014.
Your fantasy of instant action by regulators is just that. In reality investigations are not five second affairs.
I can’t speak to that but Ponzi schemes by nature of offering a security are required to be registered with the SEC.
This might come as a surprise but illegal MLM companies don’t register with regulators.
The SEC can no more detect a Ponzi scheme before it launches than police can detect a murderer before a murder takes place.
Securities regulation is reactionary in that the SEC can only react to MLM companies breaking the law.
By all means. But the fact remains your money was stolen by TelexFree scammers.
As I mentioned TelexFree wasn’t “legally established”. You done fucked up by investing in a Ponzi scheme because they sponsored a soccer club.
Who makes business decisions on that sort of rubbish criteria? Had you any sense you’d have researched on what was actually required, realized TelexFree was not authorised to operate in either the US or Brazil and not invested.
Blaming the SEC for your own due-diligence incompetence makes you sound like an entitled twat.
Thank you for your response though in the last bits of your assertion you sound rather rude and abusive!
What I am trying to say is that SEC would have tried to establish if indeed Telexfree was operating sound business in VOIP. Before issuing a license to operate, SEC would have studied in detail how VOIP would operate in the MLM business model when raising capital could be in issuing usual shares both ordinary and preference.
On my joining Telexfree basing on its sponsorship of a football club, Federation of International Football Association in conjunction with the Brazilian confederation would have set rules and regulations regarding sponsorship of any foot club in the country.
The Issue is about due deligence. OZ, we have problems here in the third world which we thought you guys in the first world are not experiencing but to some extent your institutions like SEC THROUGH NEGLIGENCE are nursing for their existence in your society!
The SEC regulates securities, not VOIP.
The SEC doesn’t issue licenses to operate.
Not with respect to legal operation of an MLM company offering securities.
Right. Don’t try to peg your individual due-diligence responsibility on the SEC.
If I come across as rude and abusive it’s because sometimes the level of ignorance victims of Ponzi schemes exhibit is mind blowing.
You have no idea what any official body “WOULD HAVE” done.
Thank you OZ but we are more than eager to hear from you about the distribution soon!
i came here for the pop corn. trawls.
I joined TelexFree because they said, they were building hotels. LOL!
No really, there was a video saying that. Geish.
Article updated with Final Judgment approval.