TelexFree @ BehindMLM

Earlier in August the SEC filed a Motion For Contempt against Sannderly Rodrigues. In their motion, the SEC argued that Rodrigues had failed to provide the regulator with detailed accounting records for over a year. This, the regulator contended, was grounds to send Rodrigues back to jail until the court order had been complied with. [Continue reading…]

One of the primary hurdles in establishing a claims process for TelexFree victims, was obtaining legal certification that TelexFree was a Ponzi scheme. To that end the TelexFree Trustee filed a motion in October. In it, Stephan Darr requested a Judge rule on whether or not TelexFree operated a Ponzi scheme. This in turn would render them [Continue reading…]

In an attempt to fend off being found in contempt of court, Sann Rodrigues recently asserted his Fifth Amendment right, along with claiming ignorance of the court-ordered asset freeze against. Claim the SEC: Neither of these arguments is availing.

Stephen Darr, the court-appointed TelexFree Trustee, submitted a report earlier this year identifying TelexFree was a $1.8 billion dollar Ponzi scheme. With TelexFree’s bankruptcy proceedings on hold, Darr has submitted another damning assessment. The guarantee of an astronomical return on the initial investment without the requirement to sell any product created perverse incentives for Participants. Participants [Continue reading…]

We’d previously learnt that Sann Rodrigues was actively promoting the DFRF Enterprises Ponzi scheme. Who knew though, that in an effort to hide his assets from the SEC, Rodrigues’ ties to DFRF and Founder Daniel Filho run oh so much deeper?

Following a contempt hearing on September 30th, the court directed Sann Rodrigues to file a Memorandum in Support of why he shouldn’t be held in contempt. Previously Rodrigues’ attorneys had argued that he couldn’t speak English, and therefore didn’t understand the asset freeze order in place. The SEC declared that argument “nonsense“, with footage of [Continue reading…]

Following claims by Sann Rodrigues’ lawyers that he can’t speak English, the SEC have filed their response. They’re not too happy.

Last we checked in back in April, a defense lawyer was attempting to delay criminal TelexFree proceedings till June next year. Two of TelexFree’s founders, James Merrill and Carlos Wanzeler, stand accused of operating a $1.8 billion dollar Ponzi scheme. We’re not sure whose lawyer requested the delay, but we do now have a definitive [Continue reading…]

Accusing him of making a mockery of an asset-freeze currently in place, last month the SEC requested Sann Rodrigues be sent back to jail for contempt. Rodrigues filed his response last Friday and, among other things, is now claiming he doesn’t speak English…

When multiple financial institutions began shutting down TelexFree’s banking accounts, Jim Merrill turned to his brother, John Merrill. As President of Fidelity Cooperative Bank, John Merrill was certainly in a position to help his brother. And help him he did, with TelexFree granted permission to open three bank accounts with Fidelity in 2013. After regulators shut [Continue reading…]