TelexFree @ BehindMLM

With tens of millions of dollars in stolen Ponzi money on the line, the Department of Homeland Security agents who arrested Cleber Rene Rizerio Rocha had to move fast. Rocha, better known as the TelexFree mattress money mule, was caught trying to launder stolen investor funds on behalf of Carlos Wanzeler and his nephew, Leonardo Casula [Continue reading…]

After initially opting to play fast and loose with the SEC, it appears time in jail for contempt and pleading guilty to visa fraud has brought Sann Rodrigues to the negotiation table. As per an April 25th proposed settlement agreement between Rodrigues, the SEC and the TelexFree Trustee, the three parties recently entered settlement negotiations.

The DOJ wanted ten years, Merrill’s lawyers argued for just over a year… Judge Hillman mulled both side’s arguments and decided on six years.

Cleber Rene Rizerio Rocha, better known as the TelexFree mattress money mule, was arrested by authorities in early January. On January 23rd Rocha was ordered to remain under detention pending trial. On March 7th, Rocha and Leonardo Casula Francisco were both indicted by a grand jury.

To understand how Jim Merrill became ensnared in this mess, one must understand Jim Merrill, the human being. James Merill’s March 17th sentencing memorandum reads like a list of things someone who heads up a Ponzi scheme stands to lose if they’re caught. What should be a deterrent to other Ponzi fraudsters is instead presented [Continue reading…]

In order for owners and early investors of Ponzi schemes to withdraw money, they have to convince those below them to reinvest. Also referred to as “compounding” or “building”, in a nutshell non-existent money is recycled into more non-existent money, all the while real money is being pulled out by admins and early investors. Everybody winks [Continue reading…]

Any notion that James Merril might get off lightly for cooperating with authorities has been dashed, following the filing of a ten-year recommended prison sentence. And that’s with full consideration of his cooperation.

While James Merrill has plead guilty and is scheduled to be sentenced on March 23rd, investigations into TelexFree continue down in Brazil. The latest has seen five money laundering charges filed against fifteen individuals connected to TelexFree.

While the sentencing of James Merrill next month will see the criminal side of TelexFree proceedings in the US wind up, down in Brazil they’re just just getting started. Following a three year investigation by Brazilian Federal Police, last Thursday twenty-two Brazilian TelexFree scammers were indicted.

Following suspicion that the house Fabio Wanzeler’s Florida house had been purchased with stolen TelexFree Ponzi funds, last December the DOJ requested a restraining order against the property. The DOJ were concerned that if James Merrill and Carlos Wanzeler were convicted, steps might be taken to sell or transfer the property to obfuscate links to TelexFree. [Continue reading…]