More warrants issued in Brazilian TelexFree investigation
Operation Orion was launched by Brazilian Federal Police back in July.
The launch of the operation saw Brazilian regulators execute search warrants on multiple properties connected to TelexFree’s Brazilian operations (Ympactus).
As of yet the results of those raids are not clear, however it is understood that the “second phase” of Operation Orion is now underway.
This second phase saw another round of search warrants executed yesterday.
Four search warrants were executed in total, with the raids led by 20 federal police officers and 12 investigators with the Receita Federal (Brazilian IRS).
The targets were TelexFree’s Brazilian headquarters in Espírito Santo and three residential properties owned by individuals in the cities of Vitória and Vila Velha.
At the time of publication who owned the residential properites raided is not clear.
Globo contacted TelexFree lawyer Horst Fuchs for comment yesterday morning. Fuchs stated he was “out of town and had no knowledge of the operation”.
TelexFree owners Carlos Costa and Carlos Wanzeler, along with top TelexFree investor Sann Rodrigues are believed to be hiding out in Espírito Santo.
As of yet Carlos Costa has not been charged with anything, fellow TelexFree owner Carlos Wanzeler however is on the run from US regulators.
Sannderly Rodrigues meanwhile is currently being sued by the SEC and is the subject of an investigation by the Massachusetts Securities Division.
Stay tuned…
Update 25th October 2014 – Globo are reporting that the Federal Court in Brazil has frozen bank accounts and assets and ‘removed banking and tax privacy’ of one company and six individuals linked to TelexFree in Espírito Santo.
The request was made by federal prosecutors in the state (MPF-ES), as announced on Friday (24).
The measure was considered necessary because, during the first phase of Operation Orion , in July this year, were seized various documents and evidence that were seized revealed the involvement of new people in the TelexFree pyramid scheme.
The second phase of Operation Orion was held on Friday. The names of those involved in the latest enforcement action will not be released because the operation is in progress and the court order was filed under seal.
Hat tip to BehindMLM reader Diego.
Update: bank accounts and assets frozen of one company and six individuals connected to TelexFree.
There is a strong belief that some or all these “six people” are Telexfree afiliates (“divulgadores”), likely with direct ties with the owners:
gazetaonline.globo.com/_conteudo/2014/10/noticias/dinheiro/1500521-seis-divulgadores-da-telexfree-tem-bens-bloqueados-no-estado.html
Maybe they finally got got Costa’s daughter and/or wife. He was using them as piggy banks IIRC.
Possible… but one would assume the Federal Police would already have had investigated the family in the first “Orion Operation”, back in July. By reading the Police report, they already knew back then of the companies and accounts under the relatives names.
So, all likelyhood points to other top affiliates, could be ones that have also a personal and professional connection with Costa and Wanzeler. There’s more than a couple of them living in Vitória-ES. One uses the same nickname as a famous soccer player, guess who… 🙂
That was a tough one. Pelé ?
Ding ding ding… And guess who have had problems with justice already because he was a suspect in a case of fraud and money laundering?
No more Ferrari, I guess.
That one was too tough. I haven’t focused on the top promoters.
Pelé (O Rei) is, from my POV and most others’, still the most famous Brazilian soccer player of all time.
The Norwegian Wikipedia listed 218 more or less famous Brazilian soccer players total. So it was a tough question, but there wasn’t much doubt when I checked the details.
I’m not sure if I got it right, but please don’t confuse Pele (whose name is Edson Arantes do Nascimento), the soccer player, with Pele Reis, the scammer whose real name is Inocencio Pereira Reis Neto.
“O Rei” means “the King”. It was Pelè’s other nickname, e.g. “the King of soccer”. It was mentioned very early in the Wikipedia article I checked.
I guessed Pelè initially, but I had to google it to verify my guess, and then I got some additional information.
Canal do Otário just posted on the matter. He didn’t wanna accuse but clearly hinted that two of these “promoters” caught on this search warrant were Pelé Reis and Flávio Arraz:
wp.me/p2OgjU-2Fg
He also showed the amount of accusations against the main BBom affiliates.
Pelé Reis was a top promoter, Telexfree poster-boy, personal friend of Costa, and also a “Conselheiro Fiscal” (financial cousellour?) registered by Telexfree.
Flavio Arraz, also top promoter and friend, is also a “Counsellor”of Agrogruta – a company of Leticia Costa (daughter of Carlos Costa).