There is evidence that the activities of Telexfree have characteristics of a financial pyramid.

-Ernst & Young report on TelexFree, February 2015

That an average person would agree that the above statement is conclusive is a given, but not TelexFree’s lawyers.

Despite the detailed reasoning behind E&Y’s conclusion (based on information TelexFree had provided the firm), TelexFree’s lawyers were quick to denounce the report as inconclusive.

The company even went so far as to attempt to deny public access to the report, arguing that the contents of it were protected by tax-secrecy laws.

Thankfully that argument was rejected.

But while the public still don’t have access to the entire E&Y audit report, today saw that process edge one step closer.

Concluding the obvious after going over Ernst & Young’s report herself, Judge Thais Borges ruled that the report is indeed conclusive.

This means that both TelexFree and the Acre Public Prosecutors Office now have 15 days to file any further correspondence on the case.

I believe this can include an appeal from TelexFree, although I’d be hard-pressed to see the point.

Between Carlos Costa’s recent sweaty videos and TelexFree’s lawyers insisting the report is inconclusive, it would seem the company now doesn’t have a leg to stand on.

With Borges ruling the report is conclusive, all that’s left to do is to challenge the data in the report itself.

Seeing as the report concludes TelexFree is a Ponzi scheme based on inhouse information provided to E&Y by TelexFree, this would appear to be a pointless exercise.

Especially when you consider TelexFree and Costa put so much emphasis on the belief that a third-party audit would remove any doubt that the company wasn’t a Ponzi scheme.

Costa had been proclaiming as much for months in the followup to E&Y being appointed to conduct an audit.

Looking forward, the 15 day response deadline puts us at Monday the 20th. Whether or not TelexFree file anything further remains to be seen. Ditto the Acre Public Prosecutors.

If neither party files any further correspondence, Judge Borges will make a final decision on the case.

What with her ruling that the E&Y report that concludes TelexFree is a Ponzi scheme is conclusive, you can probably figure out where this is going…