Carlos Wanzeler “will definitely stay in Brazil”
When it became evident that Carlos Wanzeler’s $1 billion dollar Ponzi empire was about to come crashing down, he instructed his wife to lie about his whereabouts and hatched his getaway plan.
Aware that fleeing directly from the US would likely attract the attention of US authorities, Wanzeler opted to slink across the US-Canada border in the dead of night. Assisted by some of his closest TelexFree investor friends, he then hid out for a few days before escaping to Brazil.
In the aftermath of the TelexFree Ponzi shutdown, Wanzeler’s partner in crime James Merrill and his wife, Katia Wanzeler, are both being detained following their respective arrests.
Merrill has been charged with wire fraud, and Wanzeler’s wife is being held until she can be produced infront of a grand jury to testify.
While they sit in jail cells, Wanzeler is living it up in Brazil. Rather than co-operate with US authorities, with TelexFree and its management repeatedly stated they would prior to the SEC shutdown, Wanzeler to date has refused to surrender any of the money US regulators have not frozen.
One particular sore point was $3 million dollars sitting in a bank account in Singapore. This, and presumably whatever else Wanzeler had stashed around the world and didn’t want to return to those he stole it from, is now being used to fund his life on the run.
Some of that money is also being used to pay a celebrity lawyer in Brazil, who has in recent days become a spokesperson for the fugitive.
Whereas previously the public narrative pushed by TelexFree and its management was one of “complete co-operation with US authorities”, now that Wanzeler is being held responsible for the running of a $1 billion Ponzi empire, this has since changed to
(I will) not let (Wanzeler) go to a country that does not respect individual rights, as (we have) seen when they arrested his wife (Katia Wanzeler), (when she) hasn’t even been accused of anything.
So says celebrity lawyer Antonio Carlos Castro, who was recently retained by TelexFree and Wanzeler in Brazil. Whether or not Castro understands that Wanzeler’s wife is being detained to testify or not is unclear.
Regardless, his comments come in stark contrast to Carlos Costa’s YouTube videos of last month, in which he professed a wish that “Brazilian justice was more like that of the US”. At the time, Costa believed US regulators would exonerate TelexFree following their respective investigations.
How quickly that tune has changed now that the reality of the TelexFree fraud can no longer be ignored.
In related news, and somewhat surprising given their past reluctance to grant relief in such cases, a Judge in Espírito Santo has ordered the seizure of Carlos Costa’s property and that of Carlos Wanzeler’s company, Disk a Vontade.
Judge Ademar João Bermond ordered the seizure of two of Carlos Costa’s cars, and funds held in bank accounts belonging to Disk a Vontade and VoxBras (another shell company used to further TelexFree’s fraud in Brazil).
The cars are reported to have cost Costa R$260,000 ($117,000 USD). Globo are also reporting that computers from TelexFree’s Brazilian headquarters were also seized.
The money recovered will initially be used to pay back Eduardo Tosi Borges, who claims to have invested in TelexFree 20 days before the scheme was shut down.
Borges invested R$6000 ($2700 USD), which he is to get back, along with an additional R$12,000 ($5400 USD) in “punitive damages”.
For those wondering how this is possible when an injunction granted in Acre has effectively seized any and all funds related to TelexFree since last June,
Judge Ademar João Bermond explained that civil action in Acre, which froze the assets of the company in June last year, does not prevent other judges to seek the seizure of other goods to pay those affected (by TelexFree).
Apparently there are another 30 lawsuits in progress relating to TelexFree investor losses, so it sounds like there might be further seizures at a later date.
While Brazilian authorities continue to drag their feet on bringing those responsible for the largest MLM Ponzi scheme to date to justice, at least some victims getting their money back is something.
With the abundance of evidence available, all details of TelexFree’s Ponzi business operations revealed in court documents and arrests made in the US, why Carlos Costa and Carlos Wanzeler remain free in Brazil is an ongoing mystery.
It does not surprise me (at all) mr. Oz, seeing this schemes played on leaning socialist nationals – such as brazilians, latinos, portugueses, russians in their own countries – ’cause it’s a reality in these regimes to reach out for those greedy one with the model “make money without a job”, since they fell they can get free health care, free education, free gas, free transportation, free-you-name-it.
Now, what I fear the most is (1) how Americans are gradually accepting this model and (2) allowing these migrants to fundamentally transforming America’s values by demanding the expansion of government nanny-state at the tax payer expense.
ie: would it really be necessary the SEC to file a complain against telexfree in the first place? foremost, is there free lunch?
Well its good to hear that there is a possibility of getting our money back. Can anyone explain me how could i start to? I know we have to wait until may 27th, but it would be very useful to have some information in advance.
Thanks for this blog, i think it may be the most accurate way of knowing about telexfree. Bless you all.
Your xenophobic commentaries are baffling, and can only be explained by sheer ignorance. Portugal is not especially socialist leaning – actually we lived half of our recent history under a right wing dictatorship without significant resistance, and the socialist state built after the 1974 revolution is being dismounted today again without any significant resistance by the current government.
Even more, the current fever of ponzis and pyramids in the country coincides precisely with the demise of the socialist state and a pronounced shift towards the right.
From what I’ve seen, most of TelexFree promoters, both from Brasil and Portugal, lean towards the right, if anything. Lelio Farias, Brazilian upstream of every Portuguese team, is overtly right wing, as is Neo Ricalex and many others.
I wonder what conclusions you would take from pyramid scheme Lyoness being based at the most pronounced right-wing country of Europe, Austria.
In any case, I doubt politics have anything to do with these schemes, they always feed on greed, ignorance and social disfavour.
I will not even comment in the trollish, utterly xenophobic remarks about migrants “fundamentally transforming America’s values”, especially since America itself is nothing but country almost entirely made out of migrants from all the world.
I totally agree with you, I don’t think it’s a right or left wing issue, it’s simply a mixture of (by this order) greed, desperation and ignorance.
The best article I have read sofa Oz
I view TelexFree as an illegal pyramid, as opposed to a Ponzi scheme.
Even if it was a Ponzi scheme, Madoff’s Ponzi scheme was FAR larger, and considering illegal pyramid schemes, companies such as Amway are FAR larger than TelexFree as well.
Throw in the RICO fraud for the ATS, and TelexFree is negligible in size.
AHhah.. We brazilian are NOT SOCIALIST. Ok, this kinds of free things exist but this is a kind of philosophy that has good and bad things.
Like, we have the SUS, a free medical care for ANYONE! It isn’t good, fast and etc.. But, you will not die because you have no money (again, this is not the best world, but the philosophy of the SUS is a good thing).
And we have the “Bolsa Familia” that send money to very poor people that have children, but they need to send then to school and there are others category.
Yes, there are peoples that don’t work and live only with this money. But, this is a very small number of people. If you are unbelievable poor, this small money can really change a entire community. I believe the USA and others country have similar things.
In contrast, I don’t agree with a lot of things in USA. Especially the prison system.
Here you can only be 30 years in prison and there is things to reduce this time (like work in prison). Philosophy, even the worst people in world, need a second chance. It look like very easy to get life imprisonment in USA, even without parole. In this case there is no more chance.
And worst, get solitary confinement indefinitely or even capital punishment. I just try to ask myself: For the health and security of a entire society, this kinds of extreme punishment are good or bad? Our prisional system create a “better” society than USA? (what better means is vague).
But, believe me, 30 years in brazilian prison really change you 🙂
I understand Wanzeler. If you need to choice being in Brazilian or USA prison, what will you choice? The penallity to pyramidal scheme is smaller here.
If you study the case of Avestruz Master, you will see that the family get 10 years of prison, but I discovery that they are not in prison yet. But ask youself: you want be 20 years in USA prison or 10 years in Brazilian Prison? Hum.. Really difficult choice hahaha..
Maybe you can use the “anal comfort index“… hum… What about when a lot of cell “friends” lost money with you?
Best you can do now is fill out that SEC and FBI form and then wait for further developments. Ponzi cleanup is a slow process.
It’s a hybrid. Primarily Ponzi (AdCentrals) with a pyramid backend.
Thx a lot oz!
Hey OZ, to understand what will happens with the “brazilian side” of the telexfree, why not study about 2 famous case of pyramid?
The first is the “Boi Gordo“, a pure ponzy scheme.
The big problem is that they sell “CIC – Contratos de Investimento Coletivo” illegally.
This is “official site” of the case.. The creator Paulo Roberto de Andrade, wasn’t in jail and is free today.
The second is Avestruz Master. Another pure ponzy scheme. The owner die by cancer after the company was closed, but your family was charged with prison of 12 to 13 years and need to pay 100 milion to restitution.
(As far I understand, they will never pay it, but will be poor for the rest of life with a good time in prison).. But… This is Brazil!
This link show all the case.. Or see the link to complete magazine from the case.
And this document is very funny, because is the veredict and you can understand all things that happens in this case.
But the last news I can found show that they still are in liberty.
This is a bad thing in brazilian justice because you can appeal in free. But they still need to go to jail!!! And they will!!! (funny, in this new judgement, they are not a pyramid scheme, just ponzy).
Carlos costa will start to show what happens with the first big pyramid scheme in our justice system!
And a final gift. I found this good PDF from the news of Carlos Wanzeler in the “A Tribuna”.
Is only me, but he look like very bad, maybe more thin. He is not the same when all things are good in Telexfree.
The “coward” was a good word for this guy 🙂
May 27 = non-evidentiary hearing in the bankruptcy case, Massachusetts, whether the bankruptcy should continue or … (may require evidentiary hearing at a later date).
You will find updated court documents here (in the menu to the left, “Court documents”). You probably have that link, but I included it for other readers:
Currently there’s nothing of interest there other than about the hearing itself (it’s open to the public), doc 213 / doc 208. Documents will probably pop up in the last 2 days before the hearing.
Telexfree will most likely be shut down completely = no Chapter 11 reorganizing. But I’m only guessing.
The lawyers must be like
-1 billion dollars scheme, how much my fees are going to be?
Hum.. This news make me curious about what has in the plane ticket. And because I recentely did a travel from TAM (even to vitoria, the same place of this dude), I have a high resolution of the same ticket that the news show.
This is my ticket
Now lets see what we can read from the low resolution image:
What I can read, line by line:
* OBRIGADO POR ESCOLHER A TAM
* DADOS DA COMPRA
[In this line, my ticket have my complete name (Rodrigo [rest of name]/Rodrigo MR). the MR means the mister, right and there is a bug in my ticket that show my name and the “Data da emisão” in the same line. In the image, it is really difficult to read and really look like a strange e-mail. It is not a name. What I can see is:
* [look like start with W than other letters][Than an obvious underline “_”][lool like @ or big letter][than look like BARBARA][a obvious “-“][a name in low case][than look like some kind of “@BuBB”][a strange code with “ink” or “inf” in the end][finaly a space and something like ink.hb or ink.bb]
* Data de Emissão: 14MAY14 7:40?? (the 14MAY14 is because the news say it was brought in 14 may, the time was a try to read it. My ticket was in this format: 31MAR14 – VALIDO ATÉ 17MAY)
* CÓDIGO DA RESERVA: ??????
* NÚMERO DO E-TICKET: ??? ?????? (the blue is a bug that create a link to a telephone number)
* DE VITORIA PARA ?????? ?????? ?????? [now 3 words]
* Vôo: JJ ???? – Operado por TAM LINHAS AEREAS
* Saída: 18:3? VITORIA [something]
* Chegada: 19:?? São Paulo ??? Terminal ?
* Classe: [hum.. this is not “Economica ( L )” for poor people like me 😛 maybe executiva?] [another text, look like “assento”]
* Aeronave: [the same of mine??] AIRBUS INDUSTRIE A320-100/200-ANAC CAT. C]
* Bagagem: 23k
* [The next line is the other phase of the flight. It is common in international flight go to Guarulhos São paulo and there get the new airplane to go to USA. I can’t read so much in this line.]
Lol.. Lost a little of time on it. The biggest challenger is know who buy it. When I buy, I use my credit card, and my correct information in all things it need. It was a nacional travel (Brasília to Vitória) and there was no scale. In this international ticket, the things can be a little different. By the way, you can see how strange is the name of the one that buy the ticket.
Two things. Filing a complaint with a Federal agency like the FBI or SEC or a State level complaint such as with the Commonwealth of Massachusetts may provide useable information to the authorities,but even if you do that you will also need to file a Proof of Claim.
The Proof of Claim must be submitted in accordance with guidelines and timelines approved by the Court, which as of this time has not addressed the Proof of Claim issues.
This is extremely concerning to me. Although it’s good news to hear about an affiliate getting his investment back, I feel that a bad precedent is being set here that goes against the equitable distribution of funds recovered from the perpetrators of this fraud.
Ideally, all the funds that are captured from TF, it’s management, and promoters should go in a pool that is used for an equitable distribution to net losers under a set of common ground rules. This way I suspect that individuals who have lost their principle investment with TF will be lucky to get about 10% back.
When you have one individual (ie. Eduardo Tosi) who gets 300% of his investment back through the courts as in the example above, it just throws everything off and leads to a very inequitable distribution with people rushing to get lawyers and be first in line to collect their losses. Of course, their losses are more important than anyone else.
So the message being sent by the results of the above lawsuit is hurry up, get a lawyer and sue. Who knows, you may end up with way more than your initial investment! Forget about patiently waiting for the results of the investigation.
Unfortunately, this can lead to a mad rush with people stepping over each other to be first in line to “collect”, and in full force this mad rush can be reminiscent of the greed represented by the TF fraud itself.
Those in the back of the line and those that can’t afford lawyer will be left without anything, and these will mostly be the poorer victims of TF who arguably need the money the most.
God knows all truth, the only one who can really judge. “The truth will appear” (James Merill ) pronounced in the last hearing.
Today God made a justice “Katia is home” after the lawyer proven that she had a return ticket from Brazil on May 29 and left his son in the United States at School, contrary to what the media pronounced on the last 10 Days.
If there were no net winners except for the company owners, I would agree it is more of a Ponzi scheme. If there were net winning distributors, it’s primarily an illegal pyramid.
Given that you could passively invest in AdCentral units, what sense does that make?
It is both illegal pyramid and a Ponzi as it was explained many times before. People were supposed to make money from recruiting (illegal pyramid) and passive income (ponzi). I is relatively new category of hybrid scam.
Post an official source of this information. The only references we can found regarding that are on pro-TF blogs and Facebook posts, already known to create lots and lots of lies or twisted news.
Lol the only one that can judge the truth is a criminal? The truth is that it’s a pyramid and there is no way to counter that.
The “media reported the facts as known at the time. She was the spouse of a runaway, did not have a round trip ticket in her possession and had four suitcases and $3000 on her person.
Lets not forget that she had accompanied Merrill to withdraw $27 million dollars, lied to authorities concerning the whereabouts of her husband was the payee on a Telexfree check for over $2 million
So do not for a minute tell us that her arrest and detainment was unjustified, that the media was out to get her or that God especially intervened on her behalf.
If her attorney was able to convince the judge that she was not a flight risk by providing additional information then good. Let her go home.
Don’t waste you time… That Lorival Santos guy is just another Brazilian telexzombie who believes anything a ridiculous website called “Encontrei an Rede” (something like “Found on the web”) publishes.
Their sources use to be some Brazilian TF scammers’ FB posts. Those guys will post anything to avoid people from going after them. When they’re not mentioning scammers posts or Carlos Costa’s speeches, they simply copy news from other portals and give no credit at all.
yech. I will go wash my hands. Thanks
Katia Wanzeler is still in jail.
Go to the “find by name” tab and fill with her name: KATIA HELIA WANZELER
Or go to the “find by number” tab and fill with her inmate #: 83537-053
Her inmate number is under the “BOP register number” type of number option.
It is exactly as you say.
The fact, nevertheless, is that anyone outside the US, where SEC runs the game, is now placed in the start position for a free for all for upline assets, disputing them with each other, the IRS, the public investigations, the SEC itself and the risk of uplines running away or completely dissipating their assets.
And, personally, I recommend anyone on that position to sue their uplines as soon as they can.
In Portugal and other places outside the US most of the promoters bought their positions from other promoters – sometimes a single account was bought using cash against dozens of other promoters who provided a number of credits. It is very far from certain that SEC will cover those cases, or that they can even recognize them in the TelexFree BO mess, and the most viable way probably is to sue locally the ones who sold those credits.
It’s like suing someone for selling counterfeited merchandise, it was a parallel process not in control of Telexfree.
Besides, they are all now in a run against the clock against IRS, which has already said they will do whatever they can to reclaim 50% of whatever promoters gained in Telexfree, against other promoters moving similar processes, and against SEC which in the somewhat near future will probably reclaim 100% of gains in clawbacks, and with the ever present risk of flight from those uplines.
If someone plans to start judicial processes reclaiming reimbursement, they must start them NOW and cross their fingers for getting there before everyone else.
It may look like jungle rule, but that’s the way to go. Most of the time, it’s probably the ONLY way to go as well.
Let me be clear my self here, I am not Telexfree Promoter , I’m not here to accuse or defend Telexfree, I not fallow up and trust on Carlos Costa blog , but I like the justice.
In the case of Katia Wanzeler was been proven today in court she have the 2 way tickets , than she was released after 9 days in jail ( injustice ) arrested a person to produce evidence only, she had a return ticket on May 29 , by leave her soon in school in the United States.
Let prove first than arrest people after, has no risk of committing injustice. In James Merrill case, they could hold the passport and put the collar tracking, without having to keep him in jail.
In my personal opinion , I can see the government in United States hold people in jail so they can not defend themselves, this is so unfair.
What court, according to whom?
She was apprehended with a one-way ticket.
Has she been released? Again, according to whom?
Not on her person when she was arrested.
Her husband has already fled. It doesn’t take a genius to see she steps outside of the US and she’s not coming back.
Wanzeler’s new PR lawyer’s comments don’t help.
Millions of dollars in stolen Ponzi funds were transferred to and laundered through accounts in Katia Wanzeler’s name. She also lied to agents regarding the whereabouts of her husband.
What more proof do you need?
And the source of this is what? Some TF blog?
Frankly, if it does not appear in the US newspaper (I am ambivalent about Brazilian newspapers for now) or a reliable source of US court documents I wouldn’t bother believing any of it… unless you *want* to believe in crap info. Then that’s your problem for gunking up your mind with such… stuff.
Remember, this wasn’t the first time when some TF blogger claimed that bankruptcy was granted, TelexFree will reopen in a week, and blah blah blah bull****.
Maybe those 5 bankruptcy judges released Katia, after they checked off five of the nine things on their material witness list.
The way Telexfree supporters rewrite history, the party game known as “Chinese Whispers” may end up being renamed “Brazilian Whispers”
Katia Wanzeler was apprehended with an AMERICAN AIRLINES one-way ticket to Brazil, also she was ready to board the AMERICAN AIRLINES plane. Some TF blogs are showing a TAM AIRLINES ticket, WITHOUT showing the ticket buying date. I bet someone bought this 2 way ticket now, after her arrest, as a (fake) proof, to calm the zombies.
I can be wrong, but the way I understood on the Chapter 11 trial case in Nevada explanation, Wells Fargos closed all Telexfree accounts, Wells Fargos bank made all those bank checks with no information why the closed Telexfree accounts.
All the bank checks from Wells Fargos , include Katia check was delivered to Telexfree company ( Account Manager Joe Craft ) , to submit those checks to the people doing the chapter 11 and recorded it.
By which it was made and recorded, before the government invade Telexfree office by getting those checks from Joe Craft, by trying to accuse him of trying to run away with checks, he actually going to save those checks on the bank save box after filing the chapter 11 people who was work inside the company at the time of invasion.
As OZ already observed, the return ticket existence proves NOTHING. Any brazilian that needs to travel for the first time to USA learns that having a return ticket improves your chances (for different reasons).
It does not take a brazilian criminal mastermind to figure out the same when you are trying to escape from justice.
But I would not be surprised at all if the ticket is fake.
Ryan, I’ve seen a person leave mother, father, husband, but son I never seen, and do not believe that Katia going to leave her son in the United States.
Invasion? Police entered the office with a warrant signed by a judge. Even in Brazil trying to leave the premises with anything is suspicious. Leaving WITH MILLIONS IN CHECKS? While the POLICE is searching the office? And LIE to the officer saying you are carrying only personal itens?
This is not a innocent behaviour.
Well that’s pretty conclusive.
Also your Bankruptcy retelling is wrong. Those funds being withdrawn had nothing to do with bank accounts being shut down. It was all part of the escape plan.
Really, Carlos Wanzeler’s actions should dispell the myth that was the “reorganization”. Ponzi schemes don’t reorganize via bankruptcy, they implode.
Stop watching TelexFree affiliate videos for your news…
Why not? her son is not a fugitive, neither a material witness. And could not be arrested or prevented to leave the country.
Remember how Carlos Costa said that US justice was wonderful and a example to be folowed by brazilian authorities? They know that. Her son could still attend school and leave in the US for a long time alone. You do not believe, but I certainly believe.
We can not judge anyone if we do not know the truth , about Katia airline tickets, is very easy to confirm with TAM AIRLINES , the way I done. You can confirm the date and time of purchase, and you will see that fact.
As I said before, if true I will talk, if I not sure I will seek for the truth, unlike so many who want only to accuse here.
Again, the ticket proves NOTHING, but just out of curiosity, how you checked it? You had the ticket in your hands? Or you saw a picture of it?
You know that this way I can show you a ticket “proving” that president obama itself was booked to take that same plane, right?
What world do you live in what banks will DELIVER checks?
Face it: TelexFree owners and check signers chose who to make the checks out to. And one of them was Katia Wanzeler, for PURPOSES UNKNOWN.
If the bank made the check it would be a SINGLE check.
I can guarantee to you that the government was able to identify it , and this is the reason then release her today. Let us trust in God , in the American justice instead of continuing to discuss what is right or wrong.
Yet Carlos Wanzeler let their daughter Lyvia return, ALONE, who then flew off to ITALY, not Brazil.
And there is quite an extended family of Carlos here in the US. Merrill employed them all in the cleaning business, according to some of those “humble origins” stories.
Let’s discuss facts rather than what you are willing to bet on, since you can guarantee nothing.
Only telexfree zombie blogs are saying that Katia was released. I dont believe she was.
Well… for the zombies, “facts” are everything the telexfree criminals and the zombie blogs says. Everything else is lies. As they are trained to NOT believe in the regular media.
Clarke’s Third Law says that “Any sufficiently advanced technology is indistinguishable from magic”. Well, the stupidity of Telexfree promoters is so unbeliaveble that I propose a “Clarke’s Third Law by Telexfree” that says: “Any sufficiently advanced stupidity is indistinguishable from deceit”
Can’t you imagine that friends or family members would have transported the son to Brazil at a later date?
Gents, it’s no use discussing with that Lorival guy. We Brazilian all know too well their “SCAM 101 TEXTBOOK”:
“I’m not a TF promoter but…”, “God this and God that…”, “Justice is so unfair…”, “They have no proofs…”, “TF had no complaints before being blocked” and all that BS.
Luckily most Brazilian telexzombies do not speak English (and barely a decent Portuguese) to spread their twisted ideas here.
You should read the atrocities they keep posting on those TF blogs and on any comments section of Brazilian news portals. They’re just like a Carlos Costa to the power of 100.
* Has stopped a billion dollar fraud in its’ tracks
* Has arrested one of its’ owners
* Has detained the wife of another
* Has frozen its’ accounts
* Has charged its main US promoters
And you are concerned with whether or not said wife had a return ticket or not.
The minds of HYIP ponzi participant work in strange and mysterious ways.
That’s really a pretty unbelievable explanation.
If all they intended to do was protect the money under Chapter 11 their actions are inconsistent with that purpose.
All Telexfree assets would have been subject to the Courts jurisdiction regardless of where they were and what bank account they were in.
Craft’s attorney indicated the real concern was to protect the funds from seizure or freeze by the FBI. Plausible?
Those Wells Fargo funds could easily have been transferred to Telexfree’s bankruptcy attorney’s Trust Account.
By law, attorney’s are officers of the court and Greenburg Truarig is a large, active and respected bankruptcy firm that is perfectly positioned to keep the funds safe and protected (even from the FBI) pending further determinations by the Court.
Is this what the owner’s do?
No, instead they drain their accounts and remit company funds in the form of negotiable instruments to a spouse, a foreign company, and Telxfree itself and then attempt to hide them in safety deposit boxes.
Dude, you are delusional! But don`t feel bad with yourself, you are not alone…sadly…
Patrick Pretty is now reporting Katia Wanzeler is no longer in the custody of the US Marshals’ Service
Oz or whomever else is hiding behind mlm seems to have less facts than the people he maligns. Katia was released on Thursday genius.
Ahhh… The plot thickens! I think this is related to why U.S. Marshal “failed” to transport Ms. Wanzeler to Massachusetts.
Oh, really? Let me see… thursday was may, 22 and…
So she was released thursday while was in U.S. Marshals custody until friday? Telexfree used that billion to buy a time machine, perhaps?
Boston Globe has a article about Katia Wanzeler being freed:
Did she testify?
Guess what? For the first time in the recorded history the zombies had the facts right or at least were reading from a trustfull source. US BOP says Katia was released from custody on may 22:
Katia was released on Friday, and the news was published in Boston Globe 2 hours ago.
She was clearly released “on conditions”.
First of all, I didn’t find any posts claiming the opposite, I only found posts where people refused to accept unverified claims (like your own claim about “released on Thursday”). And that’s exactly what you should expect to find here.
More from the story in Boston Globe:
Really, Lorival Santos is not just another zombie is just someone who stands for justice? Kkkkkkk
So what? She testified, got her passports taken and will be forced to stay in the US. That was supposed to happen. No one said she was going to rotten in prison.
The only thing we’ve asked for was a reliable source for the news spread on TF blogs, which are known to spread lies and make up headlines all the time, to a point they cannot be trusted. Now run and go ask for that hubby of hers to celebrate their anniversary in the US.
Its quite possible that the judge signed a Release Order on the 22nd but the Marshall did not finish out-processing her until the 23rd. It takes time for paperwork to work through any bureaucracy.
I doubt the judge ran over to the jail, found the Marshall and shouted Free Katia!
Katia Wanzeler was still reported as being held in custody on May 23rd, when ASDupdate checked.
She has probably been relocated on Thursday and released on conditions on Friday, after testifying. She can of course have been relocated on Wednesday 21st, my point wasn’t about the exact date.
Well you got this right.
KATIA HELIA WANZELER
You may find this helpful — if you’re willing to choose to see:
Maybe she’s already cooperating and in the Federal Witness Protection Program?
So now we wait and see what BS Castro and Wanzeler come up with in Brazil next week?
I doubt it. The passport confiscation is interesting though. If all she had to do is testify, there’d be no need to confiscate her passports.
I think some rulings must have gone down in court, sealed of course so nobody is any wiser (except Katia and her lawyers). Hopefully these rulings will be unsealed at a later date.
Maybe she’ll swim to Brazil…
(and lol at Renata outing Lorival… so much Ponzi lies from the TelexFree camp)
Being a TelexFree Ponzi pimp is dangerous business:
Does anyone remember what happened to Scott Rothstein?
After being the main defendant he became a witness because he cooperated with the Federal Government. Years later he surfaces in the Federal Witness Protection Program!
We should learn from the countries that implement Sharia Law how to deal with these type of criminals.
Iran Executes Billionaire Guilty of $2 Billion Scam: Banker Put to Death for Fraud
The problem is death penalty is not a deterrent to crimes, esp. the economical ones.
Given the reputation Brazil has for its’ crimes of violence and murder, any questions about the efficacy of the death penalty may be moot, anyway.
Depending on who you believe, the Brazilian murder rate varies from being the seventh highest in the world to the Brazilian murder rate being in the top 20 nations in the world.
With the reported number of Brazilian Telexfree victims, I don’t know if I would be sleeping too well at night if I was being held responsible for the Telexfree incurred losses.
Why do you think top TF pimps are always so engaged in creating and spreading lies? That and the fact they jump from one scam to the other, carrying their downlines by the leash.
It cuts the recidivism rate considerably though.
I obviously don’t know and can’t comment because I’m not there and tend to treat media reports with suspicion, but, it seems to me Telexfree is not a “normal” run of the mill HYIP fraud, due to the amount of money lost and to the large number of relative “newbies” involved who don’t seem to have been involved in this type of fraud before TF.
I have no idea what passive investment/income has to do with a Ponzi scheme vs. and illegal pyramid. Amway talks about passive income all the time, and it is an illegal pyramid, not a Ponzi scheme.
Both Ponzi schemes and illegal pyramids are illegal. The primary difference is a Ponzi scheme has one individual, or a small number of close-knit individuals, such as in the Bernie Madoff case, and every single investor is being fleeced, with new investors being the real source of profit for the earlier investors, and not the actual gains from the original investments.
I agree there was a Ponzi element, as these ad payments from new investors were supporting the previous investors, but the previous investors were profiting, and profiting from internal “consumption” (almost all of it coming from the ad purchases, not VOIP), making this more of an illegal pyramid.
Whether this is considered a Ponzi, illegal pyramid, and/or a hybrid of the two, the regulators should go after ALL of the net winners, whether the corporation, corporate officers, or distributors.
Rumor in a Brazilian newspaper has it that the Carlos twins (Costas and Wanzeler) were abducted in Brazil yesterday with the kidnappers demanding a 1Billion dollar ransom from the SEC. That’s too hilarious.
Anybody who invests before ROI liabilities exceeds new investor money runs out gets money in modern day online Ponzi schemes.
Madoff is old-school Ponzi, you need to update yourself on how they operate these days.
There’s no consumption. AdCentral positions are not consumable.
(Ozedit: Stop derailing every single article you comment on. You have an issue with Amway, noted.)
Katia wanzeler…it is free of jail!!!!
If you read the comments, we knew that 18 hours ago.
LOL, this is the exact same thing Carlos Costa said in his last video – you said you are not a TelexFREE affiliate yet you talk like one.
I’ve seen this before, not only with TelexFREE – Affiliates pretend they are not an affiliate to defend the company in the Internet (perhaps hoping to change people’s minds about – “Oh wow, someone who’s not an affiliate is defending the company, maybe I should rethink my opinion”)
Please, mr. Santos, you’re not fooling anyone here.
Good for it.
Did you know that Katia bought herself a one way ticket to Brazil and her husband bought her a one way ticket back?
I believed the ticket to Brazil was paid for by “someone in Brazil, paid in cash”, the day before she was arrested? It was initially reported like that by Boston Globe.
It does not change the punchline.
Pyramids in Brazil:
Pyramids in Brazil part. 2:
There is as much hyperbole rhetoric and misinformation on this blog as there is on the TF blogs. If all you’re going to do is quote and go to the Boston Globe for information, you’re no better than the people you malign. Stop being so lazy. Read the evidenciary hearing transcripts.
Do something other than quoting Beth Healy. You and KC want to be super sleuths? Work at it. It’s all there.
If by hyperbolic rhetoric, you mean deeply rooted in reality, and by misinformation you mean verifiable facts not made up on the fly, then yes, this site is just like all the other Telex Free blogs.
Yet you are unable to reliably point to where the misinfomation is, citing reliable sources proving that.
Yet you are unable to show exactly what part of the “hearing transcript” shows that what OZ writes here is misinformation.
You are the lazy one. We are not going to work to prove your point of view. This is your job. Show us your evidences.
Is it really important? I have read BOTH the Boston Globe and some court documents, but “Boston Globe” was easier to remember than the name of the HSI agent.
Y’huh. Here’s a tissue.
If you equate Boston Globe, a newspaper that was first published in 1872, vs. some random TF blog, it is you that needs an attitude adjustment, not us.
And your proof of this is what? Something you pulled out of your ***?
You’re just denying. Denying is not an argument. Denying is merely an opinion. You’re not sharing anything except you hate Boston Globe and this website. Opinions are like ***holes. Everybody’s got one.
What does James Merril have to do with soccer (picture in the middle of the report)? And im sure Wanzeler’s lawyer understands that his wife is being detained because she is a witness why you feel that he wouldnt know that is UNCLEAR.
I like the information you put out on the sote but some things you say are puzzling. Has anyone commented on why Borges is getting his money back. What makes him so special?
They auctioned off some of the assets and are using it to pay him first and even giving him extra (punitive damage)? Why not pay people what they lost first before awarding punitive damages?
TelexFree used Ponzi money to sponsor the soccer team Botafogo.
Beacuse of his lawyers stupid remarks. Hur dur, obvious is obvious?
As are some of the replies. TelexFree sponsoring Botafogo was hardly small news. You seem unfamiliar with the events leading up to the bankruptcy.
IIRC others have received payouts in the same state, and there’s some 30 other cases progressing.
As for being special, I think it can be summarised as him not swallowing the TelexFree koolaid. Or at least waking up from the BS the company and its top investors were shoveling down people’s throats in the weeks leading up to the collapse.
Some of Costa’s own assets. The company funds are still frozen.
While almost everyone has been waiting for the situation in Acre and the US to play out Borges went into another Court in another Brazilian State and asserted his rights. That’s what makes him special. He did not sit on his hands.
Apparently the Court in Acre didn’t freeze Carlos Costa’s assets and Borges went for them. Smart move….maybe.
What convinced the Espirito Santo (?) Court that Costa should be held liable for Borges’ losses plus damages is an open question since the Acre Court hasn’t concluded its enquiry yet. In this sense it seems rather odd that the judge would have found in favor of the plaintiff. Brother in Law?
On the other hand Costa may not have defended and Borges may have received judgment by default.
At least in the US , default judgments are contestable and often set aside upon timely objection. The case however continues.
Does Brazil do the same? Could Costa or the State of Acre contest a default judgment. There are several possibilities depending on Brazilian law.
He’s the one who signed the sponsorship deal with Botafogo soccer team in Brazil, not Costas, the Brazilian rep, or even Wanzeler. Many many months ago.
And Botafogo just terminated the sponsorship deal… from THEIR end, last week.
Do try to keep up.
Because he sued and has taken active steps to protect his own interests using the legal system… Rather than sitting back and HOPING and WISHING and PRAYING for something impossible such as TelexFree be allowed to reopen.
Here you can see two more apparently successful claims being granted by courts to Ympactus (telexfree) victims last April:
There is a significant shift from earlier decisions, where claims seems to have been systematically denied in order to protect the main bulk of seized assets waiting equitable distribution.
In both cases the court has granted anticipated tutelage of the victim loses, which apparently means those claims may be paid from money in Ympactus bank accounts, or other form of asset execution.
In one case (JANE MARIA CAMINEIRO DE ABREU) anticipated tutelage is said to be only granted when there is unequivocal proof that what the claimant says is true.
It was denied at the time, last November, but has been granted in the two April 2014 processes. Telexfree has unsuccessfully contested both processes.
What seems to have been changed, therefore, seems to be “unequivocal proof” of the alleged fraud, so currently claimants in some particular situations are seeing their causes being granted.
In the case of MARILAINE CRISTINA RODRIGUES, the complete refund of the invested amount was granted, but the moral damage compensations were denied for lack of “liquidez do pedido” – I believe this means there is not yet absolute proof of fraud as to allow for moral damages.
The case of SUANE DE SOUZA BANDEIRA was handled as a work contract – She has done the job she has been contracted by Ympactus to do, but has never been pad, therefore asks for contract being cancelled and a refund, which was granted.
In this case the court mentions the other processes and seizures going on against Ympactus, saying they do not affect the right of the claimant and a decision about it. Says execution of assets will be done at the proper moment.
It also says TelexFree in their recourse never contested the merit of the allegations, and that there is not what to contest, indeed: It has been proved that Telexfree has engaged in deceitful propaganda, has received the contracted money, has put the claimant to work for them and never paid a dime.
Disk a vontade, the power behind Telexfree is relocating from MA to Republic Dominican.
Not only that will further prove how legit business Carlos Wanzeler and Katia runs but will also bring back the powerfull comp plan that made them so succesfull. They are also applying for citizenship there as well.
Were all of these handled by the same judge that ruled for Borges? What State?
No, different courts, but same judges in those two, both in Rio Grande do Sul (Porto Alegre & Osório).
This was a post in two parts, and the 1st half seems to be MIA, which is very unfortunate and make this 2nd part look like an orphan.
In any case, some claims can be seen in this list:
In the 1st part of my post I analyzed it, with my limited means and knowledge, and noted a shift last April in granting what the judges name as “anticipated tutelage” – apparently, the ability to pay claims before a final decision is reached, or something close to that.
From what can be read in the older processes, this shift seem to be related to the increased probability of fraud on the part of Telexfree in last April, as opposed to the ones from January and before, where this provision apparently was being systematically denied.
Looks like the bad guys are winning. Carlos Wanzeler’s lawyer will simply try to clear Carlos’s name in Brazil so authorities won;t arrest him there for promoting and being part of a confirmed pyramid scheme. Carlos W. must have money to be able to hire one of the most powerful (by Brazilian standards) attorneys there.
End of this story: Carlos W gets away, rich. Wife is eventually released and flies back home, other promoters in the U.S. that have been indicted spend a week in jail if that. Merrill is released after 1 year. Other promoters that made thousands keep quiet and enjoy their commissions made through downline growth.
Carlos Costa tries to revive a new TelexFree. New U.S. management for TF resigns.
San Rodrigues keeps his assets and money. Nothing happens to him. Merrill becomes the scapegoat even though it is doubtful that he was the mastermind telexfree and, those who lost money content themselves with sucking their thumbs after all this is said and done.
OR, the Justice system comes down on these scammers with a heavy hammer, Immigration, FBI and HS find ties for the money and nails everyone in the scheme and justice prevails.
The way things are going, looks like nothing significant is happening in terms of justice. People should also remember that Carlos W can go find himself another wife. Losing Katia is obviously no big deal to him and he may see it as a blessing.
The fact that Brazilian authorities aren’t even arresting anyone there either is mind blogging. Uganda seems to be way ahead of the game in terms of arrests.
Source? (Please don’t say TelexFree affiliate blogs or YouTube videos…)
Veja is reporting that the judge in Espirito Santos has seized properties that belongs to Costas (both of his vehicles) as well as any assets that belonged to Voxbras and DiskAvontade to be paid to creditors. (Somewhat old news, I think)
And in possible escalation, PP office in Acre stated that those who recruited for TelexFree can be considered accomplices to the pyramid scheme, and be held criminally accountable.
TelexFree may possibly the largest fraud ever to Brazilian economy, according to the same source.
That’d be kinda hard considering 1) there are no more DiskAvontade assets in Brazil, as they’ve been seized by judge to pay TelexFree creditors, and 2) It’s been publicized that Wanzeler is the co-owner of TelexFree, and many victims are on the island. So much so the head promoter ran to the US (Vanterpool?) and 3) Dominican republic *does* have extradition treaty with the US. 🙂
Stop believing in bull****.
Actually, I take that back. I need the laughs. Please post some more. Muahahahahaha!
Guys forgive me for my lack of knowledge but wasnt there another trial for telexfree today?
According to the WSJ
Telexzombies saying BK was granted and it was a “huge victory” in 3, 2, 1…
Oh gosh… It did not take too long. Brazilian scammers ARE ALREADY celebrating the “victory” and that the BK was accepted. It’s all over their blogs.
I haven’t found any updates. I checked kccllc.net, asdupdate and Boston Globe 20 minutes ago.
A claims process will most likely take months or years. For Zeek Rewards, it took 9 months before people could start sending in claims, and that was fast.
* August 17 2012: “voluntarily” shutdown
* May/June 2013: Claims period start
* September 2013: Claims process end
* February 2014: 140,000 claims had been verified.
* May/June 2014: First round of payouts “just around the corner”
The TelexFree shutdown process will probably be more complicated and time consuming than the shutdown of Zeek Rewards.
The Jiuz released something today for Telexfree?
From the Wall Street Journal.
Even TelexFree lawyers agree! – “We agree that it makes sense to put in place a Chapter 11 trustee,” said Joseph Davis, a lawyer for TelexFree. “I understand why control of the company should not remain in the hands of management that preceded the bankruptcy.”
Next step will probably be changing the process from chapter 11 into chapter 7 and get done with that crap.
How many times has that BK been accepted already, according to TelexZombies? I lost count…
TelexFree has been taken over by a U.S. Trustee.
The previous bankruptcy management, Stuart A. MacMillan and the other guy, were fired.
An Amended Complaint has been filed by the SEC. It adds details concerning the amount of money the owners, managers and central promoters took out.
What about Stuart MacMilian? Where does he fit in all of this?
Out of job –> trailer park.
Bear with me guys. Going through all the overnight info now, will have something out shortly.
Good Grief, not even 65 year old Wanzeler mum escaped the crookery!
I’m going to have to split this up. The SEC’s amended complaint is quite lengthy, and I think deserves an article of its own.
Unbelievable…I’m getting tones of posts from TF clowns on my FB account parading that this new update is PROOF that the “company” is going to be reliefed of all charges and that the BK is actually going to make it stronger!
And to think that some of these lunatics I am actually acquainted with…a few of them I really respected…goes to show that you can’t judge a book by its cover…jjjjzzzz
They seem to party over every single bit of plain bad news for Telexfree, as if it was manna from heaven.
I can only think of the proverbial Monty Python Black Knight.
That’s one of the reasons for why I prefer a relatively neutral point of view. I know more than enough people who potentially can become involved in something. 🙂
The best strategy is normally to get an overview of the situation, e.g. identify what’s currently happening in the case and whether you should do something now or if you should wait.
The bankruptcy case will need to find its own path through the court system. The May 27 hearing was about administrational issues, e.g. appointment of a Trustee vs. letting the hired management do the job.
I haven’t read any court documents from that hearing. If the court decides to appoint a bankruptcy Trustee, the Trustee will spend 2-3 weeks on examining the Debtor and writing a preliminary report = a recommendation for how to proceed with the case (Chapter 11, or conversion to Chapter 7, or dismissal / withdrawal).
My prediction is that the bankruptcy case eventually will be dismissed or withdrawn, and that SEC will file an “Appointment of Temporary Receiver” motion. But the case will need to find its own path.
Not very likely. Why would the Court appoint a BK trustee only to replace her with a Receiver? Much more likely this stays in BK and converts to a Chapter 7
I’ll bet you a bagel.
Bankruptcy rules can be too “fixed” / different types of rules will most likely be needed. It was also mentioned in the May 2nd Nevada hearing, as one of the options. SEC filed a limited (or conditional) objection against the appointment of a Trustee.
I used the vague description “the bankruptcy case will need to find its own path through the court system”, i.e. I don’t know anything about certain parts yet and I can’t analyse them either.
1. I have reasons to believe that a Trustee will be appointed.
2. One of the first jobs a Trustee will need to do is to examine the Debtor and produce a preliminary report, with recommendations for how to proceed with the case. I expect that recommendation to be about Receivership + dismissal or withdrawal.
Once again I haven’t analysed any details. The prediction is about a RESULT of something rather the exact procedure to come to that result.
gOOD gUESS as its already been approved.
….and a trustee has been approved.
Like I said I will bet you a bagel. The appointment of a trustee is not a detour on the way to Receivership but the next step in what will eventually be a Chapter 7 liquidation.
That was a contingency filing in Las Vegas. The SEC presented various options or possibilities to the judge. The case has moved on. Its a BK. Its in Boston and a trustee has been approved.
A comparable case, Zeek Rewards (shut down August 2012), will have its first distribution of funds to net losers in September 2014.
Estimated interim distribution = 40% of net loss.
175,000 claims total
25,000 claims haven’t been approved yet
150,000 claims have been approved
Of those 150,000 claims:
83,000 claims are okay ($305 million invested total)
67,000 claims will require OFAC certification ($157 million)
I wonder if a Bankruptcy Trustee administering a Chapter 7 has the same powers as the person administering a Receivership.
The main thing I question is the ability to sue individuals for clawbacks and also the ability to sue other entities such as payment processors for turning a blind eye.
From what I have read, it seems that the Receivership route argues that the bankruptcy process is fraudulent and should not be allowed to go through, whereas the Bankruptcy Trustee route does not necessarily make this argument, just that TF is not the appropriate entity to administer a Bankruptcy and it should be in the hands of a Trustee.
The fact that SEC even brought up the appointment of Bankruptcy Trustee as a viable option rather than outright reject the entire bankruptcy process as fraudulent makes me wonder if this is indeed the route that the SEC prefers for whatever reason.
The bankruptcy trustee’s powers are governed by the Bankruptcy Code as set forth within Title 11 of the United States Code. On the other hand, a receiver, the equivalent of a state court trustee, has his rights and powers governed by the appointment documents.
Furthermore, receivers are usually appointed by the court, whereas bankruptcy trustees are appointed by the Office of the U.S. Trustee, a division of the U.S. Department of Justice.
Both are fully capable of this.
This gets a little complicated. The SEC asked the Las Vegas BK Court to consider several options. Abstention, or suspension followed by transfer of venue to Mass. Had the court abstained from hearing the BK case the SEC suggested a Receivership might be appropriate but also asked the judge not to make any binding decisions if he was going to transfer the case to Mass.
The DOJ motioned for a trustee as it was not comfortable with McMillin running Telexfree unsupervised out of Las Vegas. The SEC filed a limited objection since its first desire was to transfer venue so that the Judge in Mass could have a clean slate to hear both the BK case and the SEC v Telexfree case.
The Las Vegas judge suspended and transferred venue to Mass as the SEC asked and yesterday the Mass BK Court approved a trustee. This means at the very least that Telexfree management activities will be closely supervised by a trustee, but it seems more likely that Mcmillin will be dismissed and the case will be converted to a Chapter 7.
As there is no available transcript from the last hearing its hard to know what is really going on right now.
As I mentioned before it was the US Trustee who motioned for a trustee not the SEC. The SEC wanted the court to abstain from hearing the case entirely (tantamount to a dismissal) so it follows that the SEC also opposed the appointment of a trustee at that time.
However, the SEC did not get outright abstention, It got change of venue. The bankruptcy is still “on” and it seems that a trustee has been appointed but I have to believe the SEC was hoping for more.
Presumably the next step is to continue forward with a reorganization plan or convert to Chapter 7 but here is where it gets really weird. A bankruptcy trustee is expected to defend law suits brought against the debtor, and of course in this case its the SEC that has brought a lawsuit.
Telexfree’s previous position was that the SEC could not bring suit because the automatic stay of litigation in bankruptcy prohibited it. The SEC argued the automatic stay does not apply to regulatory or police actions.
We have an adversary system in the US which looks as if it will be fully exercised.