7th Brazilian state opens TelexFree investigation
Following a weekend of protests by TelexFree affiliates over the business crippling injunction granted a fortnight ago, a decision on TelexFree’s second appeal was expected early this week.
Earlier today Roberto Barros, President of Acre Court announced that the appeal will be heard in court next Monday (8th of July).
No doubt the conspiracy theories from TelexFree affiliates will now start up, however Barros advised that because ‘the appeal was brought by lawyers on Friday, there was not enough time to schedule a trial (on Monday the 1st)‘.
Oh and those protests by TelexFree affiliates I mentioned earlier?
Turns out they are a complete waste of time.
The President rejected accusations regarding the delay of the judiciary and repudiated claims made by some publishers during the protests.
He said the demonstrations will not affect decisions made by judiciary. Any arguments must be presented by lawyers involved in the case.
“The arguments made by protesters through posters and reports should be made through the proper channels, not through demonstrations,” he said.
He also refuted the information that a TelexFree affiliate promised to donate a car to charity in Acre if the injunction was appealed.
The President repudiated the action, saying it was just a way of trying to buy the Acre judiciary.
In addition to bribing the judiciary, TelexFree affiliates have also sent death threats to the judge who granted the injunction and blockaded several public roads and bridges.
On a related note, the Attorney General’s Office in the Brazilian state of Rio Grande do Norte announced that they were launching their own investigation into TelexFree.
The investigation, bringing the total number of Brazilian states with investigations into the company up to seven, is civil in matter and was initiated following suspicion that TelexFree is a “pyramid scheme”. The AG’s Office advised that the investigation will begin on Thursday July 4th.
Several other companies are also being investigated, the most prominent of which is BBOM. We recently reviewed BBOM and found it looked to be a Ponzi scheme with a GPS tracker front.
Looks like The Rio Grande do Norte AG’s Office have drawn similar conclusions about the company that need to be investigated.
In response to the investigation BBOM’s Director, Ednaldo Bishop, stated
We are aware of these suspicions yes, but above all, we have not been notified by any prosecutor.
BBOM take money from affiliates to the tune of $300 to $1500, and in exchange pay back a ROI of $80 to $400 a month, depending on how much an affiliate invests.
BBOM claim the revenue comes from customers using the GPS trackers affiliates allegedly pay for, however the company pays out instantly, leaving a pretty big question mark looming over the legitimacy of the business.
Despite the absurdity of claiming customers buy the GPS trackers the moment affiliates hand over money (affiliates never sell the trackers, the company manages this side of the business with affiliates only paying money to BBOM), Ernaldo Bishop insists
The revenue comes mainly from the BBOM tracking services and the sale of equipment monitoring. This is the revenue that we share with the network.
If people today stopped entering the system, BBOM would still be operational.
No doubt it would be in the short-term, but with affiliates no longer pumping thousands of dollars into the scheme (BBOM claims to have around 300,000 affiliates), it wouldn’t take long for the weekly ROIs to dry up without new investment.
In the meantime, TelexFree affiliates and those following the case will now be waiting till next Monday to find out whether or not the Acre injunction will stick.