With Acre’s Public Prosecutors rejecting Carlos Costa’s mediation proposals late last week, it fell on Judge Thais Khalil to go over the proposals and make a decision.

Khalil’s decision was handed down yesterday in the shadow of Carlos Costa running all over Brazil to declare “god used him” to create TelexFree and that “nobody will take it” away.

This was followed up by a rather amusing “the battle is coming to an end” video, which was published on TelexFree’s Facebook page with the following caption:

The battle is coming to an end. We trust in God, we trust in justice.

In stark contrast to the deceptive narrative TelexFree are shoving down their affiliate’s throats, common-sense has once again trumped the company’s marketing theatrics.

Appearing personally at the mediation conference, Costa first proposed that TelexFree be continued to run their Ponzi scheme as if the authorities had never intervened.

The second proposal was a bit less laughable, with Costa proposing that the company be permitted to pay out existing affiliate investors, who would then be required to re-register in the US to continue to invest with TelexFree.

Basically in both instances Costa pushed for a restart of TelexFree’s Brazilian business operations, so it’s not really surprising that Judge Khalil rejected both proposals.

Short of being permitted to lure new Brazilian affiliate investors into the scheme, TelexFree’s gameplan appears to be get their funds unfrozen and transfer as much of it as possible offshore. For reasons unknown, TelexFree appear to believe their US operations will not attract the attention of the SEC.

In addition to sending Costa on his way and in a rather surprising move, Khalil also blocked the previously permitted release of TelexFree funds to pay off a construction firm to retain TelexFree’s stake in the project.

It had been previously ruled that the Acre court would use TelexFree’s funds to pay off the construction firm, looking to preserve TelexFree’s stake in the project to be used at a later date to refund affiliate investors.

I’m not really sure why this decision was “suspended”, but I can only presume Public Prosecutor’s must have presented evidence that shows the construction company had other plans for the money (of the “wink wink, nudge nudge” variety).

Looking forward, Judge Khalil’s decision yesterday now paves the way for the civil action to continue against TelexFree. TelexFree had argued that Acre’s Public Prosecutor’s had no business suing the company, but this argument was rejected by Khalil.

As the case continues, it is expected that a trial will occur sometime in 2014. Judge Khalil is currently going through over 40,000 documents of evidence Acre’s Public Prosecutors have provided her for review.

Personally I think yesterday’s decision sends a pretty clear signal a to how Judge Khalil sees the case. It would appear the issue of whether or not TelexFree is a Ponzi scheme has been determined, now it’s just a matter of putting together the evidence to cement it in court.

Telexfree’s business model alone should be enough for that.

Stay tuned…