Dominican Republic investigating Telexfree
Launched some weeks ago but only made pubic recently, Brazilian media are reporting that regulators in the Dominican Republic have launched an investigation into TelexFree.
Following suspicions by the Technology Crimes Division of the Attorney General that TelexFree is operating a Ponzi scheme, TelexFree’s local activities have been investigated for ‘about a month‘.
John Henry Ramirez Reynoso, handling the Dominican Republic investigation told iG,
(TelexFree being a Ponzi scheme) was the concern (we had when they) came to be here.
We are (currently) doing our research: (where does TelexFree) come from? What do they produce? What do (they) sell?
The exact number of Dominican Republic affiliates currently in TelexFree isn’t currently known, however financial analyst and managing partner of Betametrix, Alejandro Fernandez pegs it at “tens of thousands”.
Fernandez was purportedly threatened by a local TelexFree affiliate for publicly calling TelexFree out on being a Ponzi scheme earlier this year.
Alexa currently ranks website visitors from the Dominican Republic to TelexFree’s website as ninth overall, with TelexFree’s website ranking as the 81st most visited website nationally.
The US and Brazil combined make up an estimated 34.% of visitors to TelexFree’s website.
Meanwhile, despite being prohibited by court order from recruiting new affiliate investors or paying out existing ones, TelexFree recently held a cruise ship extravaganza in Brazil.
Rumour has it that TelexFree owner Carlos Costa, who spoke at the event, entertained the crowds by walking on water…
The company also recently released their new logo, after it was revealed that their previous one was ripped off from a 2010 Badminton Championship.
The new logo hasn’t gone live on TelexFree’s website yet, but is viewable on their Facebook page:
TelexFree appear keen to distance themselves from the current regulatory legal mess they’re facing in Brazil, now referring to themselves as “TelexFree International“.
As evidenced by the MS Paint quality annotations I regularly exhibit on BehindMLM, I’m no graphical artist, but it looks to me like all they did was chop the previous logo in half, change the color and stick it in a circle.
It looks to me as the At&T logo with the badminton logo…
Check this out:
Even blocked, Telexfree still permits Brazilians to register. Their e-wallet system allows Brazilian addresses, so they can receive their cards.
http://economia.ig.com.br/telexfree/2013-12-21/telexfree-bloqueada-ainda-permite-registros-a-partir-do-brasil.html
I think it’s time to start handing out those $100,000 fines…
Oz, we’ve been waiting for those R$100,000 fines for illegal registering as much as we’ve been waiting for US authorities to do something about Telexfree…
It’s been nearly six months now, since the suspension of Ymactus, and since then Telexfree USA has been registering all the Brazilians they wanted… Let’s hope the court does something about, since it hit the news!
I’m not in Telexfree but my question is “why are you all complaining so much about it?” “Did telexfree burn you?”
Because I haven’t heard anything negative from the people who are in the business. Everything negative has been coming from individuals who are “not” in Telexfree.
That’s because those in it can’t look past their own hip pocket. Ponzi schemes work as long as new investors dump money into them. With those in it relying on these new investors to get paid, of course they’re going to sell you a rosy picture.
The reality of Ponzi schemes however is that they are investment scams. Call it “complaining” and make up excuses to explain away the “complaining”, but TelexFree is what it is – a Ponzi investment scheme.
Been telling my family to stay away from this scam some tell that they wont and others say I should not tell the what to do .crazy ponzy
And why is that relevant? Can people not be victimized without knowing it? isn’t the idea “not knowing theya re victimized” part of the scam? If so, how can you trust “not burned”?
You may want to think about that line of defense.
You will find several TelexFree promoters telling you INDIRECTLY what TelexFree is about, e.g. that it is a Ponzi scheme but that they see it as a “game” where it’s about winning or losing.
You will also find the opposite, e.g. people denying what they probably KNOW is true, people eagerly trying to convince themselves about something.
You should be looking for true/false rather than for positive/negative. Or else you will probably be misleading yourself, i.e. you’re already misleading yourself by identifying some information as “negative” and other information as “positive”.
@John-I think you confuse complaining with educating people about programs that, based on research and analysis, including an application of various criteria from a regulatory compliance perspective, are likely to be considered or would definitely be considered an illegal pyramid scheme.
Isn’t it the job of responsible industry professionals to both educate, and when warranted, warn those who are not as knowledgeable, about programs that would likely have regulatory issues at some point, and why?
Most people in our industry don’t have a clue as to how to properly evaluate a company and its business opportunity, and if there’s one thing the TelexFree situation has proven it’s that they don’t know anything about regulatory compliance, let alone how to determine if a program is a legitimate network marketing opportunity or an illegal pyramid scheme!
Oz and others like Kasey Chang, who posts here frequently, are doing people, especially newbies in the industry or those with little to no experience, a big service by proving background information on the companies, reviewing their pay plan, analyzing their programs-especially from a regulatory compliance perspective.
Furthermore, Oz is like an industry watchdog…it’s kind of his job to patrol the neighborhood so to speak and keep people informed and up to date on what’s happening in the industry and with particular companies…especially those that don’t appear to pass the smell test…
Personally, I think it’s time that more so called “leaders” in the industry step up and call out programs that either have a number of regulatory issues based on how they operate,how their program is designed and promoted, and how their pay plan works, what distributors are saying, especially as it relates to making money and earning income, etc., or programs where’s there no question that it’s a blatant pyramid scheme.
We can either do it as an industry or the regulators will end up doing it for us! I’d prefer the former instead of the latter!
And that’s my 2 cents worth…
Oz, I have a great caption for the cruise ship picture!
“TelexFree reps on a cruise. The ship’s name? The Titanic 2!” LOL…
Please keep me up informed, so far I’m a victim
Who are the top main leaders of telexfree in the Dominican Republic?
one of them is living in orlando the good life.