TelexFree @ BehindMLM

As the $1.8 billion dollar Ponzi scheme TelexFree created financial havoc around the world, one of the prominent recruitment hotspots to emerge was the Dominican Republic. One of the ringleaders driving the recruitment of new TelexFree investors was Jorge Mercedes Cedeño, a pastor at a Dominican Protestant church. Following the arrest of Cedeño in connection to laundering funds for [Continue reading…]

Following the suspension of e-wallet services by iPayout and a pyramid scheme case filed by the SEC, April 17th 2014 marks the date the TelexFree Ponzi scheme was shut down. A billion dollars in losses to investors, one owner hiding out in the US and concurrent civil and criminal trials still making their way through [Continue reading…]

Potentially bad news today as the massive scope of the TelexFree Ponzi scheme continues to cause issues with scheduling. Despite massive amounts of data being sorted through and made available, there’s still sizeable quantities of data either going through the process of production or waiting to be produced.

There is evidence that the activities of Telexfree have characteristics of a financial pyramid. -Ernst & Young report on TelexFree, February 2015 That an average person would agree that the above statement is conclusive is a given, but not TelexFree’s lawyers. Despite the detailed reasoning behind E&Y’s conclusion (based on information TelexFree had provided the [Continue reading…]

In one of the more comedic episodes of the TelexFree saga, we saw the company and their lawyers place much emphasis on a court-ordered audit last year. The audit, to be conducted by the firm Ernst & Young, was ordered to provide the court with answers to specific questions – the answers to which were [Continue reading…]

As part of the bankruptcy proceedings initiated by TelexFree’s owners, the company was required to file Schedules of Assets and Liabilities. Owing the bankruptcy proceedings being initiated in order to dissolve Ponzi ROI liabilities and head off a civil and criminal investigation into the company, these schedules were never filed. Receiving absolutely no assistance from TelexFree’s [Continue reading…]

Much importance has been placed on the Ernst & Young report on TelexFree that was due out this month. Despite the SEC’s case against TelexFree, criminal proceedings currently taking place against its owners and Trustee Stephen Darr’s damning evaluation of the company earlier this month, many Brazilian investors believed the Ernst & Young audit would somehow absolve the [Continue reading…]

Following the publication of TelexFree Trustee Stephan Darr’s status report a few days ago, a status conference pertaining to TelexFree’s bankruptcy proceedings was to be held today (February 5th). Upon reading Darr’s status report however, it seems Judge Hoffman didn’t like what he saw. Consequently, Judge Hoffman ordered the status conference cancelled and that Kurtzman Carson [Continue reading…]

Ahead of a status conference in the TelexFree bankruptcy proceedings to be held tomorrow, comes a status report filed by the court-appointed Trustee, Stephen Darr. In the report, among other things, it’s revealed that the extent of fraud that took place within TelexFree far exceeded any previous estimates. (TelexFree) purported to be operating a multi-level marketing company [Continue reading…]

Sure to add to the legal stress TelexFree owners are already currently under, news today that regulators in Brazil have filed another criminal case against the company. The new case revolves around regulatory issues surrounding TelexFree’s VOIP offering in Brazil, and is the culmination of a criminal investigation that began back in 2013.