Acre PP: TelexFree under investigation in the US
Over the last few days a veritable sea of information has been released pertaining to TelexFree’s sponsorship of the Bazillian football club, Botafogo.
Patrick Pretty’s covered the Botafogo story and subsequent fallout with their main sponsor, Viton 44.
This morning the latest on the Botafogo story comes from Alessandra Marques, of the Acre Public Prosecutor’s Office:
Botafogo could be harmed by accepting sponsorship from Telexfree, now accused of being the biggest financial pyramid the history of Brazil with warnings issued in at least two more countries.
According to the prosecutor Alessandra Marques, responsible for the action that blocked the deal in Brazil, the freezing of assets of members of Telexfree can, in theory, include funds from the contract with the club, even if the funds are held external (to TelexFree).
As interesting as it is to watch the prospect of Acre seizing TelexFree investor funds transferred to Botafogo develop, of far more significance were comments made by Marques on US radio.
Speaking on Boston’s “Vem Viva” radio station (650 AM) about the Botafogo sponsorship fiasco, Marques revealed that
the governments of Brazil and the United States are already in contact to investigate the actions of (TelexFree) in the United States.
Marques noted that TelexFree run the “same operation” in the US as they do in Brazil, and as such
the U.S. government can intervene and prevent (TelexFree) from continuing operating in (the US).
Unfortunately Marques stops short of going into specific details about the US investigation into TelexFree, only stating that
I can not say give details (as) this is a sensitive issue, but (I can confirm) that an existing investigation is already happening (in the US).
What I can say is that the American government takes a much stricter view on (Ponzi) criminals than the Brazilian (government).
In a phone conversation with Globo, Marques did however name the IRS “in addition” to other US regulators as being part of the investigation. Whether or not the SEC are involved is currently unclear.
It should be noted that its standard procedure for US regulators to make no comment on investigations until they are concluded (and only then if further action is taken).
In the meantime though, now that a US investigation has been confirmed it’s probably going to be a matter of counting down the days until regulators make their move.
As in Brazil, TelexFree’s business model has it accept $299 deposits from affiliates on the promise of a $20 a week ROI for 52 weeks. The company also pays affiliates directly based on how many deposits recruited downline affiliates make via a matrix.
How this will be seen as anything but the sale of unregistered securities by TelexFree remains to be seen.
TelexFree are currently registered in the US state of Massachusetts. Back in November 2013 Massachusetts’ SEC division suspended the operations of another Ponzi scheme, WCM777.
WCM777 responded by “shutting down” their US operations and fleeing back to Hong Kong. Shortly after they confirmed they were indeed guilty of selling unregistered securities in the US.
Just a few days ago WCM777 announced they were changing their name to Kingdom777, along with plans to return to the US and “register with the SEC”.
Are TelexFree next on the Massachusetts Ponzi chopping block?
Stay tuned…
I’m just sitting back with popcorn in hand expecting Carlos to schlep in, dragging a bloody dead horse by the tail for this one.
Nah, Costas is just going to wave, and when you look at his hand, he’ll claim the horse twitched, did you see it?
Maybe the gospel girl faith sloan will have to start praying…
So we talking about month or days of this big ponzi going away?? Is that a yes
@anthony
Ponzi schemes always explode organically anyway.
If you’re talking about US regulator intervention, that’s up to them. We don’t know how long they’ve been investigating or who, other than the IRS, is involved.
I believe that Telex Free is a very ethical and good company. I pray that it survives.
No amount of prayer will turn a pile of turd into gold.
On the other hand, for that post, I think you deserve this award:
(oh well, the IMG did not resolve)
here’s the URL
i125.photobucket.com/albums/p75/adrianmatt/bth_Golden-Turd-Award(dot)png
I just don’t get it. Why people are so cruelty and want a great company that positively change people’s lives to get shut down or do investigation when there’s nothing wrong.
Company that has products and services for the consumers can never be a Ponzi scheme. This company is going to change the world of network marketing industry.
Sometimes powerful thing can be accused and I understand because it’s not for everyone. The thing is…accusation only comes from the sidelines.
@Ger
Clearly.
There’s nothing positive about losing your money when new investor funds run out.
False.
If by “change” you mean be another embarrassment to the legitimacy of the industry, correct.
Where they come from is irrelevant. By definition, TelexFree’s business model is a Ponzi scheme. The core is rotten.
Try to analyse it with an open mind rather than repeating what you want to believe in?
You can use TelexFree to TEST whether or not your methods, where you’re REPEATING what you want to believe in, really gives you the correct answers?
Your ideas were about:
* Other people’s cruelty
* Great company
* Positively change people’s lives
* Change the world of network marketing
* Powerful things can be falsely accused by sideliners
* If it has a product, it simply can’t be a Ponzi scheme
You can TEST the correctness of your ideas after 3, 6, 9 and 12 months (April, July, October 2014, and January 2015). If they’re correct, you can probably continue to use them and also tell other people about them. If most of your ideas have failed, you should probably stop repeating them.
If you really believe in your own ideas, you should normally LOVE that challenge. It will give you the chance to show all critics how wrong they were, and how right you were.
Alternatively, if you don’t believe in your own ideas, then why are you repeating them over and over again?
How come this came out now right after the big sponsorship? If Marques knew about this US investigation, why didn’t she mention it sooner? Why wait until TelexFree branded themselves with a the Soccer team?
This just sounds too coincidental that it decreases the weight of the investigative statement, and since it’s not coming from a US official.
I’d say because they’re expecting money to be laundered via TelexFree’s US operations into Brazil via Botafogo. Hence the mention of a US investigation.
No real need for the announcement but the information is interesting. You won’t hear anything from the US side till they pull the trigger, they’re notorious for keeping mum till it’s game over.
hello oz do you mean? that the United States expect the ponzi runs alone do not intervene before?
in the case of wmc777 intervened immediately, however, and then I read that if there are investigations underway are the American IRS that it is not the SEC, IRS could turn off this telexfree the same? those who would they be?
Some people don’t seem understand that ponzis are capable of enriching some people at the expense and ignorance of others.
And others know how a ponzi operates, who its capable of enriching, and they couldn’t care less nor give a rat’s hind who it hurts in the process as long as they are the ones being enriched.
They understand the cliche: “A fool and his money are soon parted”… on a frequent basis.
In Brazil, TelexFree was shut down in an emergency action using Consumer Protection laws, as a pyramid scheme. That has led to a lengthy process in court with few results after the shutdown. TelexFree will not be investigated by other authorities (for the same offences) as long as the case resides before a court.
In the US, it will be investigated as a Ponzi scheme, involving several authorities (SEC, FBI, Secret Service, IRS, US Postal Service, etc.). The several authorities are part of a “Presidential Task Force Against Financial Crimes”. They will investigate a much wider aspect than Brazil did, e.g. money laundering, terrorism financing, tax fraud.
A Ponzi scheme will typically involve many types of financial crimes / potential other crimes.
WCM777 was shut down locally in one state, for sale of unregistered securities. That will normally lead to a settlement where the organizers pay a fine and receives a restraining order. Selling unregistered securities only violates civil laws, so it can be resolved in a settlement.
Most people will focus on their OWN money and results. There’s nothing wrong in that in itself. It’s about HOW they do it (and maybe WHY they do it) that creates problems.
I’m not sure about the “enrichment” for some of them. They will often continue to be just as poor as they always have been, they have only got some money to hide their own poorness.
If we ignore that group, most others will be relatively normal.
I’m not interested in individual’s opinions. I only want facts. How far advanced is this US Government investigation? I am hearing that the investigation started over 6 months ago. Why is it taking so long?
@roberto
Not really sure what you’re saying (auto-translate doesn’t seem to translate italian well).
I don’t pretend to know the threshold for a US regulatory investigation. They keep that to themselves.
WCM777 wasn’t shut down “immediately”. Massachusetts conducted their own investigation into the scheme. It started back in March or so from memory with the trigger being pulled towards the end of last year.
The IRS investigating TelexFree will no doubt lead to other regulatory agencies getting involved. They all work together these days.
I think money laundering is what’s going to do them in. Specifically money being laundered out of Brazil via TelexFree US’ banking channels.
@Colin
US regulators keep the status of their investigations secret unless they eventually act (only then do we get specific details).
Who told you an investigation started 6 months ago?
One of the distributors of telex Free joined the program over 6 months ago, said that he’s been hearing stories of Government investigations since the day he joined. But nothing seems to eventuate.
You’re only interested in facts, but you’re republishing what a TelexFree affiliate pulled out of his arse?
Cmon man.
As it stands a US investigation involving the IRS has been confirmed. That’s it. Take everything else with a dumpster truck load of salt.
* History tells us six months is nothing in terms of how long these investigations can and do take.
* “I am hearing” is a meaningless term when it comes to the “facts” you demand.
Unless you have a personal contact inside the Presidential Task Force Against Financial Crimes you and your source haven’t got a bloody clue how long any investigation has been under way.
That authorities never release information WRT ongoing investigations is a “fact”
Your choosing to believe or disbelieve that “fact” has no bearing on the matter.
As an example, investigation into the AdSurf Daily fraud was ongoing for at least 18 months before it was busted, a “fact” that wasn’t revealed until after prosecution began.
Only then was it revealed the PTFAFC had been gathering evidence for over 12 months, including screen grabs of virtually every ASD related web page and forum.
You have probably the same information we have. The Public Prosecutor in Acre has vaguely confirmed “something”. That’s the first “half official” explanation ever released involving any investigation in the US.
In her own words:
Now you know vaguely THAT it exists, WHY it exists, and one of the agencies involved.
You’re been reading too much bogus propaganda that your mind was plugged up with crud. Please do your own research on at least two cases:
FHTM (Fortune High Tech Marketing)
Burnlounge
I am not going to tell you how to research, just look at what they sell, and how they ended.
THEN come back and tell me what you think about what you said previously.
Clearly, you’ve been lied to. It is time for you to discover the truth.
You can get more vague information.
* If an investigation in the US was INITIATED in the US, we can only guess when that happened.
* If an investigation in the US was INITIATED from Brazil, e.g. because Brazilians signed up as affiliates, it was probably initiated around August / September 2013.
Carlos Costa published a statement in late August where he denied responsibilty for any Brazilians signing up into the company in the US. That’s the first date I know about where there POTENTIALLY can have been initiated an investigation from Brazil.
An investigation of that type will first need to be performed in Brazil = they will need to investigate the LOCAL part of the case before contacting authorities in other countries. They will need a SPECIFIC case rather than a general one, they can’t send a request “we suspect there are some illegal transactions from the US to Brazil”.
There’s a lot of factors supporting that theory. We have had Brazilians asking questions about how to contact authorities and what type of information they should send. That happened in the same time period (August – September).
People living in Brazil have probably contacted Acre PP with information about Brazilians bypassing the court order and how they do it. Acre PP has probably contacted correct agency in Brazil. Correct agency in Brazil have probably investigated it locally, and then contacted US authorities for assistance.
We need to clarify that Telexfree in under investigations in the USA, not just a statement from anyone!
Give us a link, let us view on the reports talking about investigations in the USA
The Acre Public Prosecutor’s Office is not just anyone, they hare handling the case against TelexFree in Brazil.
It makes sense that they would be in contact with US authorities as money has likely been laundered between the two countries.
US authorities won’t comment until they’re ready to pull the trigger on TelexFree. If you’ve invested you’ll have your invested money frozen and can then start pretending you had no idea TelexFree was a Ponzi scheme.
Translated link to the Globo article. The link was found in the article here.
The information is rather vague, so people will simply need to interpret it themselves. The Public Prosecutor is clearly an “official” in the case, not a random “anyone”.
Im from africa n ive been involved in the business for 7months..bern hearing the ponzi scheme talk since the day I signed up n the investigations but up to today they are still investigating????? What crap is this
Steve Labriola denying any investigation is the latest news, in a new article here.
He expect authorities to contact the company before starting any investigation, so from his viewpoint there isn’t any investigation.
U.S. authorities will normally use code names for investigations and other types of actions, e.g. “Operation Empty Promises”, “Operation Desert Storm”.
They will not contact people and tell them “you’re under investigation” when they start an investigation.
This is a fake blog!!! Where are the sources stating it’s under investigation. Telexfree have 1099 so why worry about IRS.
@Allanbryan
I think you might be confusing the Brazilian investigation with the recently revealed US one. The Brazilian investigation has resulted in the suspension of business operations in Brazil, with the case currently being processed in court.
The revelation of a US investigation is a new development, with no indication as to when it (or they if multiple investigations are open) started.
Why, are you a tax attorney or work for the IRS and can speak of such matters that they don’t have to worry? You’re not, neither are we.
But you *can* get people into trouble if you issue them 1099 INSTEAD of W2s, and vice versa, or have wrong withholding, or other problems.
Zeek did PLENTY of that by issuing what’s essentially fake 1099 and tell affiliates to write huge deductions (i.e. all the bid purchases) further adding to the fraud.
So, please, stop proclaiming your ignorance. You probably learned that from your upline, who either don’t know anything either, or is lying to you.
Yes. We would need more information on an investigation in the USA to support your statements. I am totally excited about telexfree. Hope to make some Brazilian contacts someday.
Go ask the prosecutor’s office in Brazil. That’s a new contact for you, right?
You’re under no obligation to believe anything anyone says.
Whether you choose to believe it or not, US authorities NEVER release details of ongoing investigations, unless it’s a formal investigation.
Next time you’re watching Law and Order on TV, look out for the investigating officer and District Attorney using the phrase “I can neither confirm or deny there is an active investigation
Chang…what makes you so against TelexFree? What do you have that can really proof what your statements are against telexFree? and did part of zeek shut down was because of IRS?
There’s two initial sources, “Vem Viva” (through lancenet.com.br) and “Globo”. I linked to a translation of the Globo article in post #30. Both sources are rather vague, but they do also have some clear parts.
“Vem Viva” interviewed Alessandra Marques about the Botafogo story, including some questions about investigation in the US. “Globo” tried to clarify some details. Both got relatively vague answers, but she confirmed some general info.
A lot of things are actually very clear:
* She couldn’t tell because the information is sensitive.
* She could tell WHY it’s sensitive
* She could confirm that there is an investigation
* She couldn’t tell which type
* She could tell about 1 agency (IRS)
* She could tell WHY there is an investigation
* etc. (I don’t use the sources right now)
You can’t draw any CLEAR conclusion from the information you have there, the information WAS vague. You will need to MAKE it become clearer by filling in other details. I tried to do something like that in post #27, for a specific part of the story. I tried to identify WHEN, WHY and HOW it could have been initiated.
Public Prosecutors in Brazil don’t have any DIRECT contact with authorities in other countries, but they can initiate an indirect contact through Department of Justice. Alessandra Marques can clearly have requested information and have received information from the US, through “official communication channels”.
Public prosecutors don’t investigate, they will handle the RESULT of an investigation, and prepare a case so it can be presented before a court and to the parties involved.
Life doesn’t work that way. It will eventually be about realities, not about our own excitement.
You can clearly EXPECT an investigation in the US too, and you can also expect a shutdown. It’s about WHEN and HOW rather than about IF.
TelexFree has so many red flags that you probably have noticed some of them or most of them. Most people actually have.
What are the red flags???
The lack of real customers / the fact that people are generating fake customer accounts to qualify for commissions.
The fact that most affiliates will choose to deactivate the VoiP subscription after the first month, by letting the invoice remain “unpaid”. The fact that TelexFree is sold in countries where the VoiP doesn’t work.
The fact that it has been shut down in Brazil for 7 months. That process isn’t completed, but it has effectively been shut down there for 7 months.
The fact that you will find descriptions for how to avoid taxes, clawbacks and other trouble, or how to bypass the restrictions if you live in Brazil. I had to simplify the explanation here, it’s examples rather than descriptions.
The focus on “don’t mention investment”. Most people will actually see it as an investment.
The 10 “99TelexFree” attached to each AdCentral. They didn’t have any real function in reality for the business, but they have managed to use it in marketing videos to show how much money you can make on selling them (hypothetically).
The system where you get paid in 1 “99TelexFree” per AdCentral per week, and the company buys it back automatically.
The lack of transparency from TelexFree management / top producers about the situation in Brazil. They should normally have been “preferred source of information” rather than us (from time to time).
The fact that their MLM attorney Gerald Nehra tried to file a complaint here about the use of “Ponzi”, around February – April 2013. We have an article about that. We never heard from him again when he got a reply pointing out the AdCentrals.
The fact that it initially was promoted in Ponzi forums (Ponzi, HYIP, pyramid schemes etc.). For many, that will be a huge red flag, but that’s an individual opinion.
Most people have actually noticed SOME red flags, e.g. people will clearly accept it if I identify the lack of customers as a red flag. But people have different sets of red flags, and for some people the lack of customers won’t mean anything.
@M_Norway
M_Norway, K. Chang, Oz! The US investigation is the best thing that can happen. After that there will be one of these realities: Telexfree is a proven scam OR Telexfree is a good and legitimate business, right?
So, in case the latter reality reveals, I have a proposal for you – wanna get on my team? 😉 I’d love to have such experts like you! You are clearly able to make a looooooot of money for me… and for yourselves, of course. 🙂
Norway? Telexfree?….endless amounts of red flags are waving like sails in an ocean breeze…Perhaps it’s not greed,ignorance and lack of consience that keeps these hanger onners from seeing the truth…. but rather color blindness? hmmmm.
Any intelligent person who performed due diligence in researching Telexfree would have closed the (check) book on them after only a measly 1/2 hour of research. There are plenty of opportunities that are legitimate ways to make a decent living. Why on earth would anyone sacrifice their family, reputation and money in a “business” that has so much controversy surrounding it?
A note to the main characters like Steve Labriola (Mr. I love to say awsome!!!! all the time no matter what I’m talking about…because I can’t really talk about anything so I say…”AWESOME” every other word) and Ms. Faith Sloan attacking blogs like this….you are sooo threatened by these blogs because they are trying to help by doing endless hours of research and getting valuable information out so that people “can” make an informed decision….)
I personally am greatful for this blog and others because it allows me to get information as to what’s going on since I have family that is heavily invested in this) I’m waiting for the phone call that says “omg…..”
A note to the little people hoping to make it big and defending Telexfree?…..If anything…have some self respect…these flashy sales people that I’m ashamed to say are Americans from the USA…purposly target poor and less schooled people in hopes they can get you to give them your money.
Your people are the ones still moweing their lawns and caleeeeeeaning their houses. They are shakin you down on every level….get it yet?
Ok…Catty woman moment…I apologize to Oz and all those that write on this blog for my moment of smallness….from a woman to Faith Sloan….with all your money….that’s the best you can do with your hair? Really? What salon are you attending girlfriend?
Can you say….Product???? lol
@livehappy
You don’t need an investigation to decide that either way, TelexFree’s business model tells you all you need to know.
The US authorities aren’t going to use some magic formula or alternative business model when analysing TelexFree. They’ll use the same common-sense and logic anyone else would.
Zeek Rewards executives, consultants and affiliates were running around telling everyone being investigated by US authorities was “business as usual” and “a good thing” too…
@Dorothy
Sloan is heavily invested in TelexFree and now Lucrazon Global. Clearly “product” isn’t her strong suite.
*boom tish*
I do want to take a moment to thank all of you that take your time in your lives to do such amazing research that is presented here. You all make a difference.
I also appreciate those that add their skeptical thoughts…all is needed to help someone come to a conclusion that is best for them. I love your banter amongst one another ….somtimes I’m thinking grumpy guy’s haven’t eaten….lol.
I sigh “heavily” when I read the comments of those that still “believe” in lost causes and are being taken advantage of. so..Siiiiiiiigh! We are actually behind you Telexfree people….we want you to be “free from Telexfree.”
As for OZ and the blog gang….go eat somthing yummy!!!! you deserve it!
I don’t think I will like some of the people higher up in your upline. I’m not a “follower”, and I don’t like ideas about “excersize some faith in the company”. 🙂
Try to ask Faith Sloan instead of me? She’s much more experienced. She’s also a contributor here from time to time, when she’s not busy. She will probably love to hear that I recommended her. 🙂
Others already gave you a list
But the easiest sign that I spot is Costas himself. He behaves more like Comical Ali (aka Baghdad Bob) than head of a company.
And I’ve seen many scams. They follow generally the same pattern. As have Oz and M_Norway here.
You may want to read this:
http://www.journalnow.com/business/business_news/local/article_12d2f6ae-7354-11e3-8129-0019bb30f31a.html?mode=jqm
Previous year’s tax returns issued by Zeek *probably* triggered many audits, which lead to their inclusion in the charges and settlement. If it’s not relevant, they would not have mentioned it.
Yes… so it can die that much quicker.
The problem here is you make it sound like a 50/50. It’s more like 99.999 / 0.001
Why play with those odds?
So that I can start my Telexfree business with a blast! 😉
Let’s gamble! If they somehow manage to prove theirs is a real MLM system, I want you and Oz on my team!
C’mon guys, M_Norway refused my proposal due to some personal preferences… would you two be more professionally oriented, plsss?!! 🙂 Who else’s gonna activate my binary in a better way?! 😀
cheers!
There’s nothing to prove or disprove, it’s all there in TelexFree’s business model. Best of luck with the continued time wasting.
The Comedy OpenMic night is two buildings down on the right, thataway —–>
I think they’re holding tryouts in front Acre Public Prosecutor’s office. Must be able to chain himself to sidewalk.
My refusal was entirely related to my professional viewpoint, the personal preferences were only used as arguments to support it.
You should read it like this:
“I can’t recommend myself because I’m not the solution you are looking for, but I can clearly recommend another solution”.
I ignored my “personal eagerness” to join, and focused on what you really were asking for. You were asking for experienced people to join your team, and I identified my own experience to be of the wrong type.
I then recommended another solution that better would meet your needs, and I picked the best solution of the two I recently had analysed.
You will need to look at that recommendation to see how professional my viewpoint was. Faith Sloan will probably fit right into your team, and add valuable experience and knowledge to it of the right type.
You will need to look at factors like:
* fluid English and Spanish
* know the business, know the company
* already in a position
* trained for many different tasks
* have an existing downline
I would clearly fail, but I didn’t fail to offer you an alternative solution you clearly could be interested in.
I would fail partly because I would need to spend too much time explaining my methods to someone in your current upline, i.e. I’m pretty sure you have some “strong believers” there.
You will need to look at it as it really is, rather than looking at the ideas you initially had.
The type of professionalism where people eagerly are recommending themselves isn’t the only type of professionalism.
Blah blah blah….if it fails then too bad. If you succeed then great for all the promotors.
A Ponzi scheme failing isn’t a question of “if”, it’s a mathematical certainty.
And when they do collapse, if they get big enough millions are scammed in the process. “Too bad”? Guess you’d be one of the net winners then.
Life doesn’t work that way. People won’t join your team because YOU are interested, but they may potentially join if THEY are.
It’s as simple as that. It will first start to get complicated when people are trying to apply “fixed sets of ideas” to it.
“People will join something because THEY are interested”. That idea will fail to work if you’re adding too one sided ideas to it, e.g. “everyone will be interested in income, so I should focus on what they can earn”. Life doesn’t work that way either.
hi am Brazilian and I am getting proposals to enter the telex in usa free company, and have already grandres problems here in Brazil with my money locked. I like the opnion of you guys buy new shares aobre free use of telex? obrigado . hehehe.
My personal advice will be “NO”. It will most likely create some trouble for you. I don’t know exactly what TYPE of trouble, but I believe you can expect some transaction problems (e.g. transactions being blocked or seized).
When your old idea failed (when Telexfree was shut down and your money was frozen), you should have corrected that idea rather than repeating it. That’s what they’re trying to make you do right now, they’re trying to make you repeat a failed idea.
TelexFree Brazil became high risk around February 2013, when authorities actively started to look into it. It was shut down locally in Brazil 4 months later, on June 18.
TelexFree USA is in a similar situation. It will most likely be shut down within a few weeks or months. From my viewpoint, it’s simply not worth the risk.
thanks for the reply. here in Brazil many people are entering again with new accounts.
“Definition of insanity is doing the same things over and over and expect different results” — Narcotics Anonymous Manual
And you are being asked to do the same thing… again.
So ask yourself this very simple question: are you insane?
The vague part of my reply was based on two of the other articles here (links disabled):
behindmlm.com/companies/telexfree/telexfree-cant-control-brazilian-recruitment/
behindmlm.com/companies/telexfree/telexfree-claim-no-affiliate-data-fined-again/
I’m pretty sure Brazilian affiliates can expect SOME types of transaction problems. The court has clearly focused on that part in the last few weeks.
List of TelexFree articles:
https://behindmlm.com/category/companies/telexfree/
What makes you so sure that’s their no if. If you are sooooo confident there is no if why has it been running this long and still going?
Why won’t to give an exact date since your so sure. If it pass that date and it’s still running then you don’t know what your talking about!!!
Then why Telexfree still running In Brazil?
There are other MLM out there similar to telexfree and they are still running for years. You guys are hating cause you probably never succeeded in one and now your mad!!!
No there isn’t. None of them have a Ponzi schem like AdCentral attached to it.
And FHTM was closed 11 years after it was founded.
Your statement only proves you know very little about MLM history. Who’s mad, and who’s ignorant?
If telexfree a real scam, then why is it taking soooooo long to prove it. What’s taking the investigation so long to close telexfree?
If you know so much why won’t you call the investigators and tell them all you know that is a scam that they don’t know!!! Ignorant!
TelexFree Brazil was partly shut down on June 18 2013, and it has been partly shut down since then = no new recruitment in Brazil, no money in or out to or from affiliates. Some unrelated business operations have been allowed to continue.
Look at the realities rather than your own ideas? It has actually been shut down in Brazil.
TelexFree USA hasn’t been shut down yet. If anyone from Brazil illegally are joining TelexFree, it will be TelexFree USA. They will potentially experience some transaction problems in near future (few weeks or months).
We only have vague information about potential investigations in the US, but from a reliable source.
The average lifetime of a recruitment driven Ponzi scheme is around 2 years = around July 2014. I believe TelexFree USA will be shut down earlier than that, or in other ways be “halted” in most major markets.
We can look at it 3 months from now (April 20th), to see if anything has changed? I will expect payments to Brazil to be one of the first things to be affected.
Ok, if nothing happens past April, then you need to stop talking like you know stuff.
Tim? I don’t understand your anger towards the information that Oz and the contributors provide here. They have nothing to lose or gain by presenting information so that you and other readers can make an informed decision on the “investments” that you and they make with their money.
Your ponzi leaders have “everything” to lose so that’s why they tell you all “specifically” not to read this blog. You can perform your own investigation on the internet to confirm whether or not what is reported here is factual or not.
You and your “Telexfree” friends make such fools of yourselves when you write such childish comments and responses. I actually wince when I read them.
Have you done any investigating on your own to even look in to the background of some of your leaders? The owners? Their lawyers and characters like Faith Sloan? If you had you would discover for yourself that most of them have been involved in other “business ventures” ( I’m trying to be nice ) that have either been shut down or have very questionable dark clouds over them.
Instead of being a hater be an informed business man. Hmmmmm so tell me….how many of those “awesome” VOIP packages have you sold to someone other than yourself? And tell me….were do the adds you post go to? and what exactly do they say?
You are right on one account. Telexfree is changing lives. Apparently there are two people that invested in Telexfree in Brazil and in their despair when it was shut down took their own lives. How’s “that” for a life changer?
Does that give you one bit of thought about what you self centered ******** are doing? And don’t even come back with It’s the governments fault”.
Why should I do that?
If you look back in time, you will see a lot of unexpected delays where hardly anything happened for a long time. I expect the same thing to happen now, a lot of unexpected delays.
I simply gave you the facts you asked for. I also gave you some estimates you asked for.
You will find other TelexFree articles by scrolling to the top of this article and clicking “TelexFree” right under the headline. That will bring up a list of articles.
@Tim
Because TelexFree’s business model is not a secret.
…and I have an IQ higher than that of a grasshopper.
Stop idiotic making excuses for your participation in a Ponzi scheme.
“Set a date and if it’s still running past that date then it’s not a Ponzi scheme!” – What are you, five years old? Grow up.
The court has requested a copy of the database from Carlos Costa. He failed to deliver it on January 14, claiming that he didn’t have access to the database.
The court should then request the database from James Merrill and/or Carlos Wanzeler. Deadlines earlier in the case has been 20 days (4 weeks). I expect a shorter deadline now, but I’m not familiar with Brazilian deadlines.
I expect them to fail to deliver the database within the deadline. I expect some type of action from the court in Acre via an American court.
But all of this is only guessing, and it may fail completely.
That’s WHY I expect transactions to and from Brazil to be affected. But I made it much more vague in my reply to kleverson in post #60. “Constructed theories” like the one I just made up won’t make much sense.
Who knows if all the information provided by these contributors are true. There is hardly anything available to research about the Ponzi scheme of telexfree but blogs like this.
Of course leaders and owners always come from other MLM. It goes for the same on successful MLM business. I’m not hating, I’m asking questions wondering where your facts are from and not from rumors. Contributors here feel so confident about the conclusion they said its 100% of what will happen to telexfree. No one knows that.
There will always be those who fail in MLM you speak of, but why won’t you mention those who became wealthy too. Product sold is base on the effort one put in. If they promote the product they sell the product. If they promote the business side of it then they get recruit. That’s how every MLM is, even successful ones.
The ads posted goes on the website it’s posted to. Any classified website can be use, like Craigslist. The ad say what ever you put like “VOIP services unlimited for $49.99”. The two people you mention about taking their lives. That were their choice. It’s sad they did what they did but you can’t say it’s because of us either.
We’re in the same boat as them knowing what we put ourself into. Responses on here are open to any type of questions and replay. Of you feel offended how I try to make a point or find out what people here are talking about then you must be childish yourself.
Enough said. We will see what happens at the end.
You should.
TelexFree’s business model is not a secret. They take new affiliate investment money and pay it out to existing investors. Nobody sells anything and the whole “contract” thing is just a facade.
Ponzi schemes either get shut down or run out of investor funds to pay out. One or the other will inevitably happen with TelexFree.
Burying your head in the sand is your own prerogative. How history repeats itself indeed.
Not TelexFree. Investing in AdCentrals has nothing to do with products.
It’s a Ponzi, the ultimate conclusion is foregone.
Then you were lucky to find this one? We’re not an anti Ponzi scheme site, TelexFree was initially reviewed as an MLM company. The review is about the products, compensation plan, joining fee and similar stuff.
You will find links to original sources in almost every article, usually to Brazilian media. Some articles will be related to Carlos Costa, and they are typically based on translated youtube videos.
How many bona fide sales to end users (of “99TelexFree” subscriptions) have you actually made, e.g. in the last 3 months?
Bona fide sale = real people paying for the product with their OWN money, for more than the initial month. You can not count any of the fake customers you can generate from your back office to qualify for commissions, and you can not count any of the affiliates.
“If they promote the product they sell the product” didn’t exactly sound like many customers. Most people will refer to their own experience rather than to a hypothetical “they”.
We may see it, but we will never get to discuss it. Not with you, anyway.
You’ll be long gone, moved onto the next get-rich-quick scheme, profiting at the expense of your friends and family and congratulating yourself on how clever you are.
Did you join TelexFree now recently, e.g. in the last week or so? And have you posted some questions in the MoneyMakerGroup forum about the VoiP subscription, e.g. about how to disable the subscription?
Then I gave you exactly the same TYPE of information there = exactly what you asked for, limited to my own knowledge, plus some additional information you potentially could be interested in.
You have got exactly the same TYPE of information here, but you asked about something quite different. You mostly got factual info.
If selling the product is mainly the issue with telexfree then why are they coming out with more product like the “my financial advantage” and coming soon the “telex mobile”. Doesn’t this means they are focusing on real customers with more product?
How do you know if telexfree is not trying to fix the issues that you guys say they have? It is a new business in progress.
Because VOIP clearly had nothing to do with investing in AdCentral units.
Something that seems to have gone over their heads is that no matter what they attach to the scheme, it also has nothing to do with investing in AdCentral units.
They’re trying to do what Zeek did, run a Ponzi scheme and eclipse that revenue with a bunch of tacked on stuff (here it’s financial advice packages and what not, Zeek was an e-commerce platform).
The two don’t cancel out eachother. Your business model has to be based on products to retail customers, not third-party products additions added as an afterthought.
Because they’re doing SFA about the AdCentral investment scheme.
New company? They’re two years old…
No I have not join yet, but I know close people who have. I am looking closely to this and want to clarify more information.
I just don’t like how some post here are so confident about knowing how telexfree work when they have not tries it. No one knows the outcome until it is settle. And I only been on this forum.
I think this is the third time I’m writing this: TelexFree’s business model is not a secret.
I don’t need to “tries” a car to know how it works. Petrol goes in, zoom zoom.
The outcome of Ponzi schemes is always the same. Owner runs, authorities shut them down or they run out of money.’
Whether you like it or not is neither here nor there.
Do you guys even have a MLM business that you support and say it’s not a ponzi? Or are you guys straight up have no interest in MLM?
Ummmmm….everyone I know always test drive a car before they buy it. Maybe this is a reason you don’t trust is because you don’t test drive your cars and they all died on you. Like how you all MLM will die. Think about this one.
Let me guess.
You’re not the captain of your high school debating team.
BTW, what are you planning on doing when you finish high school ??
I guess I made a point here. Trying to go out of context?
@Tim
I’m not interested in investing in TelexFree. I’m interested in analysis of the business model.
Driving a car != understanding how one works.
You on the other hand would have people believe an investment in TelexFree is required to understand that money invested is paid out to existing investors.
Logic fail.
Tim…If you are one person I encourage not to join….I’m a miiiiiilionaire!!!!!!!!!!
Don’t be an ass in your life.
Hey, don’t blame me if you want to engage in sophistry and demanding a level of “proof” unobtainable outside of the TelexFree accounts.
TelexFree has been effectively shut down by government action in several countries and is under investigation in countries that won’t tell you what or who they are investigating.
If that sort of “proof” is not good enough for you, or you feel the need to gamble they are wrong, don’t let anyone here stop you.
Sell the farm.
Invest your parents’ retirement funds.
We’ll see you back here in six months time with the results of your “investment’
OR NOT
If you claim to be a millionaire, then what are the sources to that? Don’t be an ass??? You the one who started name calling!
Why don’t you guys answer this post?
Because it’s a derail attempt. Derail attempts will be sent to the spam bin.
The discussion is about TelexFree, not other “MLM business”. Using other “MLM business” to deflect attention away from the scheme being discussed is a commonly enough used derail tactic of Ponzi supporters.
That said it’s also an idiotic question. There are over a thousand articles on BehindMLM, do your own research.
I used “Scott Miller TelexFreeTrainer” as one of my sources for some of the back office details, e.g. the fake customers.
http://www.youtube.com/user/TelexFreeLeader/videos
The Ponzi scheme issue is about the AdCentrals
* “invest $289 and get paid $20 per week for 52 weeks”
* “invest $1,375 and get paid $100 per week”
* “invest $15,125 and get paid $1,100 per week”
* “if you want to earn more, simply buy more AdCentrals”
“EXPERT SOURCES”
If you’re looking for “expert sources”, we have 2 articles about Gerald Nehra (TelexFree’s MLM attorney in the US). The first of them will partly clarify the Ponzi scheme issue, i.e. he didn’t feel he had a solid case.
February 19 2013:
behindmlm.com/companies/gerry-nehra-fails-basic-telexfree-due-diligence/
Don’t remember the date:
behindmlm.com/companies/telexfree/gerry-nehra-gives-legal-blessing-to-telexfree/
The video in the second article may not be available anymore, it was only meant for “internal use”. It will require you to identify EXACTLY what he’s saying, rather than what you normally will BELIEVE he’s saying.
MLM Ponzies became popular with ZeekRewards in 2012. Around 10-20% of the companies reviewed here will probably fit inside the group “Ponzi scheme”.
“You guys” should normally include yourself, if you’re using this website correctly. The replies you have got have all been individual replies.
I’m a former sales man, and I have genuine interest in most types of commercial markets. I don’t have any specific interest in MLM as a business model, i.e. I’m not attracted to that type of business.
If you’re looking for “true believers”, you will find some of them.
Did you bothered to READ what you quoted / answered to? Already told you it took US 11 years to shut FHTM. it’s not even a year with TelexFree.
And what makes you think the investigators don’t know? You don’t know what they don’t know. You’re reacting to this with EMOTION rather than logic. In other words, you’re thinking with your heart, not with your head.
Just the way the scammers like it.
All the different changes I have seen have been attempts to disguise what the business is about, “pseudo compliance”.
One of the changes was that they added 10 “99TelexFREE” software to each AdCentral, to make the payments and commissions be based on “flow of products” rather than “flow of money”.
They also made the $20 weekly payout be paid in software, where the company automatically would buy back the software for $20.
Changes like those two don’t have any real function in business. You can’t “construct” solutions to make an investment scheme become legitimate, it will still be an illegal investment scheme with a constructed pseudo compliance method attached to it.
Gerald “don’t mention the word investment” Nehra is relatively weak on business logic, but he’s a strong believer in his own ideas. He will fail if anyone tries to analyse his ideas. Even the true believers will avoid using Nehra-logic in their arguments.
Like anything else in life, it will eventually be up to yourself to make your own decisions. I’m not familiar with the new additions to the product line, they are not really that important. I don’t see them as very “consumer oriented”, they are similar to “random additions”.
My comment about Gerald Nehra’s business logic weaknesses was related to that he doesn’t see a business as a whole, he sees it a “separated components”. He can accept completely irrational business solutions when they reflect some legal ideas. He will typically fail when he tries to get other people to accept his ideas.
It’s probably better if you can look at “my financial advantage” and “telex mobile” yourself.
I don’t need to shoot myself in the head to know it’s bad for me. Do you?
Your “I must try it first” logic is a huge FAIL. It may work for some instances, but it does NOT work for ALL instances.
You sound way too interested to be not involved personally. You are using all the bad arguments generally used by someone personally involved rather than someone calmly and logically fact-checking. Though it is also possible that your first exposure was to a fan of TelexFree, and thus that initial exposure had contaminated your mind.
Because they refused to remove the part that’s obviously illegal: AdCentral.
If you have an illegal product that is a Ponzi scheme, adding X more legal products doesn’t make the company legal.
Hey, Oz! This comment is for you. When I first joined TelexFREE opportunity, I heard people from the sidelines kept saying that TelexFREE opportunity is a Ponzi scheme.
Since I have never been to one before in my life, I thought to myself…I might as well get in to experience it. Well, I have been in it for 8 months now and actually turned out to be the best opportunity in the world of network marketing as of right now.
I don’t know about tomorrow. Nobody knows about tomorrow no matter how good or bad it is, right?
That’s a wonderful story Ger. What it has to do with Ponzi schemes and TelexFree though I have no idea.
Please don’t waste my time with comments that contribute nothing to the discussion. You making money by ripping off subsequent investors in the schemes might be dear and near to you. For the purpose of business model analysis though, nobody else cares.
Take a look at ZeekRewards, to place your own experiences into the correct perspective?
https://behindmlm.com/category/companies/zeek-rewards/
Clawbacks, tax problems, criminal charges, people fleeing the country to avoid clawbacks and prosecution. Being a net winner is sometimes worse than being a net loser in Ponzi schemes.
TelexFree has the potential to create much worse problems than ZeekRewards, e.g. because of all the internal transactions and all the other methods they use to disguise payouts. TelexFree is much more fraudulent than Zeek was.
The problem with Ponzi schemes is that they trick you to BELIEVE that you earn money. They don’t tell you anything about clawbacks (disgorgement of ill-gotten gains).
if my memory serves me well you mentioned investigations began in march. So why do telexfree investigations begin later.And they seem to be taking longer.
Who exactly represents the USA’s agencies in brazil that they have to relay information pertaining investigations taking place in the US. and we shall all watch out for the credibility of this site if telexfree ends up victor here.
and you could also tell us the developments in telexfree so we can weigh both setbacks and improvements.
WATCH OUT.
You’ll have to ask the US regulators that. Heads up: They won’t answer.
They also won’t tell you who they are working with in the US. Contrary to Labriola’s “nobody called me so there isn’t an investigation” assertion, investigators typically operate covertly. I’d imagine more so with a Ponzi scheme the magnitude of TelexFree.
Also note that WCM777 was only shut down in one state. There might very well be an ongoing federal investigation as a result of Massachusetts’ effort.
I try to report as best I can but I’m not privvy to the inner working of US regulatory agencies. What you should be asking yourself though is if the US regulators came knocking, do you honestly think TelexFree wouldn’t be shut down?
Spending your MLM career worrying about the next regulatory shutdown is a damning indictment of the companies and more specifically the type of opportunity you’re attracted to.
To the best of my knowledge TelexFree haven’t changed their business model. I’ve already analysed that so now I’m covering the regulatory fallout.
I don’t consider football sponsorship and TelexFree execs giving eachother
blowjobsawards newsworthy, so you won’t find any specific articles on those “developments” here.We don’t “control” the US guv’ment or the Brazilian government. They will follow their own time schedules rather than ours.
Brazil started investigations in February 2013. TelexFree was shut down locally in Brazil 4 months later, in an emergency action. 7 months later, the case is still far from any conclusion, but you can clearly see which directions the case is going.
Most people who joined as passive investors in Brazil after February 2013 probably lost most of their money.
Most people who have joined TelexFree USA as passive investors after December 2013 will most likely become net losers. But that isn’t really important, it will sometimes be worse to be a net winner than a net loser.
Do you seriously want us to “compete” against the companies you’re in, e.g. actively try to shut them down as fast as possible or within a specific date?
Most MLM Ponzi schemes will have a lifespan of around 2 years before they collapse naturally by running out of investors. For TelexFree USA, that will be between July 2014 and January 2015.
If you want to check credibility, check one of the companies that already have been shut down or collapsed. Or you can check TelexFree WHEN it’s being shut down or have collapsed.
We can’t PREDICT it more accurately than you can. I can only predict that a shutdown of TelexFree USA will become rather “ugly” for the promoters.
The more fraudulent a business is, the more “ugly” a shutdown tends to be, e.g. in all the subsequent problems (clawbacks etc.).
I do not know any of the collapsed pyramid. But I know a bunch closed by the authorities. Questions arise.
@Mark
Really? I think there truly are some important questions if that’s the case.
Say hi to the rest of the people living under a rock for me.
Your “questions arise” has probably been answered long time ago. They wouldn’t have worked.
Pyramid schemes will fail when they run out of people. Ponzi schemes will fail when investors starts to withdraw more money than the money coming in from other investors. None of them can work, but collapses can of course be delayed by different methods.
It’s hardly likely a pyramid or ponzi scammer is going to come out and tell the truth about what caused the business to close, is it ??
I have seen every excuse under the sun, from the owner being struck down with Dengue fever to an owner being paralysed in a car accident, and, of course, the old standby “mum / dad / sister / brother / wife” dying or contracting some rare tropical disease.
Let’s not forget the little green men and their DDOS attacks…
Why is it that these people Telexfree lack a physical office. Here in Uganda, the offices are organised by the locals only to echange emoney for liquid cash and vise-versa.
However i have questions
1. Competitiveness of the product 99 VOIP
2. Lack of physical offices at HQ (have virtual ones only)
3. Anormal ROI
3. Impact of the adverts posted on the clasfied web
5. No clear phone contact for helping customers
I think Telexfree is a Ponzi. Sorry about poor english.
In a You tube update from Telexfree’s Head Shepherd Sheeple herder Steve Labriola, he shared his itinerary for the up coming weeks. One stop being in the Dominican Republic.
Apparently Telexfree is under investigation in The Dominican Republic. Why would he head back there?
Ru-Ro…Sounds like trouble in paradise. Faith Sloan can be heard on her site in her “new’s” to be splainin that she’s recently ( 4th 5th of Feb.) been bombarded with questions from sheeple about why Telexfree’s site is down… and she don’t even knows who these people are that are callin….:)
Hmmmmm is that any way to speak to the lil people that are paying your bills Faith? What they be axin? Why Telexfree has closed down the site????
So she answers her sheep with a story about beans on the highway and a drunk calling her…. She couldn’t have been more un professional and a bully to her worker bee’s. A note to “The investors”…This is a good example of who your dealing with. Instead of calming your fears she tells you you’re babies….how did that work for ya? Want to send Telexfree some more money?I wonder how much your kids bikes are worth?
Side note…..tax time in America!!!! All W2’s or paper work pertaining to earned income must legally have to be sent out by the last day of January. Wonder if that might be the stick in the mud. : )
Al Capone was a bad boy the cops couldn’t get….but even he couldn’t run from the USA tax man…..good luck with that Big Boys and Girls of Telexfree….Telex….FREE??? lol…that’s actually going to be funny some day!
That’s one of the events that will affect how fast TelexFree will be shut down in the US.
I wish I had found this site sooner because I was one of those gullible and stupid people that “invested” in Zeek. Never again! Lost money in that “venture” but at least I was not a net winner.
A cousin was trying to recruit me into TelexFree but it sounded all too familiar. It is definitely a ponzi scam. I tried to explain to my cousin the similarities between Zeek and TelexFree but he insists that TelexFree is legit (it is not). So, I am out to prove him wrong.
Stumbled across this site and discovered a wealth of relevant information. However, what really gets me is, even when TelexFree is broken down and explained as to why it’s a ponzi scam, TelexFree supporters refuse to believe it. There goes my whole point of this research.
I say to the supporters of the scheme, the information is given to you, what you do with it is up to you.
The fella who originally said: “you can lead a horse to water, but you can’t make it drink “ wasn’t just Whistlin’ Dixie.
True believers are not interested in logic and evidence. They will dismiss you with “you just don’t get it” or “you are a f**ing liar”. Same thing happened with Zeek for MONTHS before (and after) it was shut down.
The investigation into Zeek was very hush-hush. We heard rumors of a pending investigation but it was quickly swept under the rug by our upline. It was business as usual. Then one day, without warning, Zeek’s website and office just shuts down and all funds were frozen.
So, with that…I can vouch that U.S. investigations are kept confidential until a solid case is built. TelexFree is headed in the same direction in my opinion. All I have to say is, if any TF supporters want proof that TF is under investigation, they will have to wait until it actually shuts down.
“It is easier to fool people than to convince them that they have been fooled.”
I am a TF promoter. I’ve read most, if not all of the comments posted in this blog. As a TF promoter I do not feel offended by adverse opinions or information about the company, rather than that, I read the posts with an open mind and try to get the whole picture instead. No one here gets paid for their opinions or personal research.
I live outside the US and I’ve been with TF since August of 2013 and had no problems up to date. Even though I knew of the problems in Brazil even before I joined, I felt very secured about the Company for what people in my upline said and based on my own personal 3 months research.
After six months, I still don’t have a downline since most of my friends feel very insecure about the company after the Brazilian situation. This coming week, I have to guys that want to join TF and are ready to sign in, but I am having second thoughts. And the reason is, like many said, “red flags”.
Even though I am a Spanish speaking person, I like to “monitor” TF users around the world, and one of my useful hand for latest info was the “unitedstatestelexfree” website which has been down for month, if I am not mistaken in time. This was very odd for me and struck me as a red flag.
I will continue to use my 99telexfree account to save money on my calls. I will continue to post my Telexfree ads to the end of my contract, and recover my investment. But what I won’t do to this point, is affiliate people on my downline until I see or feel more securely about the company. I will invest no more for time come.
Thank you all for your opinions, I am sure you all mean well.
Leaving aside the legality for one moment, you have hit upon a reality for those interested in joining even slightly suspect online “opportunities”
More than just members, get-rich-quick schemes, whether they be a pyramid scheme or a ponzi scheme or a combination of both, depend on a continual supply of “NEW” money.
These schemes cannot rely on the “usual suspect” opportunity hoppers, most of whom know exactly how to play the game and do so with as little financial cost as is possible.
They, as in the “opportunity hoppers” rely almost entirely on recruitment of “newbies” with fresh money as the source of their income.
As you have discovered, that supply of New money is going to be severely limited as more news of TelexFrees’ shady history and current legal problems leaks into the general population
These things cannot survive on “opportunity hoppers” alone, and, with every news release involving its’ increasing legal problems the gap between the amount of “old” and “new” money widens until TelexFree will go into a downward spiral from which it can never recover.
@ John,
I smiled when I read your post.
Your comment gives me hope that not only is this blog helping to inform people but it’s encouraging to me to find that there are still people in the world like you that have a quality that is lacking in those heading up Telexfree…..A conscience.
You guys are very informed. I am wondering what is your best estimate of when TelexFree will be shut down in the US?
littleroundman mentioned above that AdSurf Daily was investigated for 12 months before it was shut down.
M_Norway hypothesized that “If an investigation in the US was INITIATED from Brazil, e.g. because Brazilians signed up as affiliates, it was probably initiated around August / September 2013.”
Based on the above, an estimate of August/September 2014 for TelexFree shut makes sense. Am I missing something?
The most accurate answer to the above is “whenever the US authorities decide to pull the trigger”.
IM(very)HO, TelexFree in the USA will self implode before it is shut down by an external agency.
Based on HYIP ponzi history, the adverse publicity being created by the actions of various governments against TelexFree will scare away enough potential new members so that it won’t even have the lifespan of a “normal” HYIP ponzi / pyramid fraud
My feelings says June 2014, but it’s just a hunch.
It’s impossible to predict anything, because too much information is missing.
My guess says sometimes between April 2014 and July 2014 (April 15 – July 15). I will need more information to make a more precise guess than that.
The hypothesis had a condition = “IF it has been initiated from Brazil”. I answered some questions about which agencies to contact and what type of information people should send around August/September 2013. The questions included both the Public Prosecutor in Acre and US authorities.
There was nothing interesting in the answers I gave. I will typically tell people to reduce their own investigation efforts and focus on short and factual information. “Add it to the information they already have”.
I pointed out a couple of videos explaining the back office functions, plus one video clearly indicating investments. All of it were found among TelexFree’s OWN marketing material or training material.
I probably gave an advice like “Try to see it from THEIR viewpoint rather than your own, and don’t drown them in time consuming material”. I’m not really sure about that part.
Anyway, people will normally follow their OWN ideas rather than mine, and most often they will only test their own ideas, e.g. tell people about the ideas and see how they are accepted. So I’m not really trying to give any advices, it’s more about adjusting myself to the same type of ideas.
I can’t help but wonder how the telex top dogs and permoters are going to file tax returns and not get flagged by the IRS for audit. How will they explain on their last tax return they were making 20,000 a year and on this years return they’re making 900,000? Bonus?
You bring up a relevant issue but as long as the income is reported and the taxes are paid, what reason is there for the IRS to conduct an audit?
Because they want to know were the money came from. Was it a legal way or illegal. Bad guys don’t just hide money because of taxes, they hide it to stay under the radar.
I sold a piece of real estate years ago. I made about 80,000 dollars on the sale and put the money in the bank. Filed my taxes and paid what I owed. I was audited because they wanted to know were the money in my savings account came from.
I was really suprised they would waste time on me but they did. I had to prove it came from the sale of the property.
Good day everyone. We have a good problem here. Brazil and USA are just two countries where Telexfree operates. Let’s say for the sake of argument they get shut down in USA now, do you think that will be the end of Telexfree in the other countries Telexfree operates like in the UK, Spain and Europe in general?
Are you aware of TelexFree Kenya, Telexfree Nigeria, TelexFree Mali, TelexFree Ghana (Telexfree Africa) and the rest. TelexFree has attained a ‘Pandemic” Status. I am fully aware that the VOIP works in Nigeria and Mali.
I’m african and in Africa even government officials are Telexfree promoters lol. How long do you think it will take to Shut down Telex free operations in these countries? 1year? 2years? 5years?
If the owners and promoters are stripped of their property and money and thrown in jail I would think its a done deal.
As for the owners, that’s possible, but I doubt if the U.S authorities can touch promoters outside the U.S. Also,the “Telexfree business model” may not be illegal in other countries and Promoters in such countries cannot be prosecuted
As long as it takes to cordon off the banking conduits and to send the TelexFree traffic to a sinkhole destination. The sinkhole change chould take 30 seconds or so, depending on the typing skills of the agent who enters the information after a judge authorizes the action. (LibertyReserve, an alleged $6 billion money-laundering vessel, was taken down in this fashion.)
The cordoning off of the banking conduits could take longer, one of the reasons the United States generally doesn’t announce actions until it knows where the majority of proceeds are being warehoused.
PPBlog
Hmmmmm… meaning if these Telexfree guys have learnt from the Brazil saga and are smart enough to move the bulk of the proceeds to a bank in a country that the U.S have strained relations with say Iran or Palestine (Gaza), they get to keep the money and run things from there if they are not yet in Jail. Interesting.
Most of them are just local “distributor” with delusions of grandeur. Saw the same kind **** with TVI Express promoters.
That sounded like a “very intelligent idea”? 🙂
They HAVE most likely moved some transactions off-shore to “international e-Wallets”. But do you believe banks will continue to pay if the company itself has been shut down?
The fact that they were ordered to shut down in Brazil and are still operating all over the world , spreading their tentacles wide and deep answers that question.
It makes me wonder why more people who sell their real estate aren’t audited. I did so a few years ago and banked $500K. No audit. Just one of those things I guess.
The fact that they have been shut down in Brazil and are STILL operating all over the world spreading their tentacles wide and deep and paying promoters answers that question
I know ALOT of people that have invested their money on telex free and none of them pay taxes on their earnings because telexfree doesnt care they are tax evaders themselfs.
Well, you’d be wrong my friend! First, upon finding the program is an illegal pyramid scheme, the Court will appoint a Receiver, and among his/her various duties is to retrieve as much of the money as possible, which is then put into a victims fund, from which those who lost money can then file a claim and recover some of their losses.
The Receiver will hit “net winners” (those who made more than they put in) regardless of what country they reside in, with what are known as “clawbacks,” meaning a return of the net winnings the Receiver has determined they illegally obtained.
Smart people either return the amount in full or have to negotiate an agreed upon amount to return. If they fail to cooperate, and live in a country that is a signatory to the Hague convention, the Receiver then has them served with legal papers, at which point if an agreement isn’t reached, they’re sued in court in their country, guaranteed to lose, at which point they either pay the amount the Receiver has determined they owe, or they’re subject to having bank accounts and assets seized.
You can learn more about “clawbacks” on the website of one of the MLM industry’t more well known law firms, Thompson-Burton. thompsonburton.com/zeekrecovery
Scroll down the page to the section entitled Zeek Receiver Issues Quarterly Report” and below that is a sub-section on Clawbacks.
For those who live in countries that aren’t signatories to the Hague convention, and who decide they’re not going to cooperate with the Receiver, there is the possibility of what is known as inter-country cooperation agreements entering into the picture which involve the IRS, Department of Justice (FBI) and Department of Homeland Security (Secret Service), and can include INTERPOL, and even in cases where such agreements are not in place, countries usually cooperate in cases of pyramid schemes, financial crimes, and fraud and that includes African countries!
Furthermore, a number of countries around the world have similar laws when it comes to securities laws, pyramiding statutes, financial fraud, etc., so if the long arm of the law in the U.S. doesn’t get them, chances are law enforcement and the judicial system in their own country will.
@ Ken
Hey Ken thanx for the great piece you put together there.. I’m not going to lie, I’m starting to realize there is something wrong with this easy income..
as you guys can see I’m new in MLM business..I was just introduced to telexfree & saw all the money my friends were making; soo I decided to take a risk;& the risk was worth taking because I’ve made all my money back & some but I will like to learn more about MLM & how to make money from something with not SOO many RED Flags…
That is a woman in Hudson MA who alleged recently ‘invested’ $400,000 on Telexfree and the money alleged came from abroad into US without authorities being notified.
I guess no gain tax will be reported as well
@Oz,
I sent a letter to one of the business editors of the Boston Globe with a bit of background about Telexfree and asked that they look into Telex since they are operating right in their own back yard. I gave BehindMLM and Patrick Pretty as places to get some great background.
Do you think it would help if I share his email so perhaps others will write?
Then it must be ok for me to invest only $189. Right She would have to be crazy to do it, and a total idiot to allow anyone to know about it.
Under reporting of taxes is common and Tax evasion is an international sport. It should be in the Olympics.
@Dorothy
Not publicly. Spam a’hoy!
TELEXFREE HAS DECLARED BANKRUPT… WHAT DOES THIS MEAN TO THEIR AFFILIATES?