TelexFree @ BehindMLM

When TelexFree sought to circumvent regulators by filing for bankruptcy, no doubt James Merrill and Carlos Wanzeler thought the move was genius. Run up a three billion dollar Ponzi scheme and then, when the money runs out, use the bankruptcy courts to wipe the slate clean. Well, sort of. Turns out filing for bankruptcy has come [Continue reading…]

Following the granting of a new Temporary Restraining Order that included Daniil Shoyfer, Shoyfer filed an objection against the granting of a preliminary injunction. Equating the plaintiffs to “thieves in the night”, Shoyfer (right) asserts they have offered not a single document, not a single affidavit and, indeed, not a single supported allegation which would justify [Continue reading…]

As per an SEC filing earlier today, following the issue of an arrest warrant on January 15th, Sanderley Rodrigues was arrested in Florida on January 20th. After his arrest he appeared before Magistrate Judge Elizabeth Jenkins of the United States District Court for the Middle District of Florida (Tampa) regarding the terms of his incarceration. [Continue reading…]

Following a last-ditch effort to fend off being found in contempt of court, Sanderley Rodrigues proposed the sale of motivational videos and books. Rodrigues’ plan would see him remit 20% of whatever he made on sales each month, to clear a court-ordered $474,503 remittance to the SEC. The SEC were not amused, with the regulator labelling Rodrigues’ [Continue reading…]

With an affiliate-base of almost two million and an estimated three billion dollars invested, TelexFree is undoubtedly the biggest MLM Ponzi scheme we’ve seen yet. Now, as we near the two-year anniversary of the scheme’s shutdown, the first round of clawback litigation has been filed against its top investors.

The emergence of a new Temporary Restraining Order in the TelexFree civil case has left me stumped. I’m still trying to suss out what’s going on, but for now here’s a breakdown of what we know.

The long-running contempt feud between the SEC and Rodrigues looks set to be resolved one way or another, with a decision on whether Rodrigues should be incarcerated before the court. Working against a January 15th repayment deadline, Rodrigues on the 14th filed a proposed stay of the contempt proceedings against him. Submitted with the proposal [Continue reading…]

Remember that brief but weird “tell all” video phase Sann Rodrigues went through last month? Turns out it might have all just been a preliminary marketing pitch for upcoming Rodrigues-branded products.

Following an Interim Status Conference held on December 4th, a report reveals that a plea agreement between James Merrill is “unlikely”. There have been some very preliminary plea discussions; the parties believe that a plea is unlikely. Also out are the defenses of ‘insanity, public authority, or alibi.

Fed up a year of lies and stalling, in August the SEC filed a motion requesting that Sann Rodrigues be found in contempt of court. The regulator demanded Rodrigues be sent to jail, pending identification of all his current accounts and restoration all assets transferred or disposed of in violation of the Asset Freeze. Rodrigues initial [Continue reading…]