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).