TelexFree @ BehindMLM

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.

To me this is one of those “everybody was in on it but now nobody wants to take responsibility for getting scammed” type stories. Increasingly Africa is a hotbed of recruitment for the MLM underbelly. Over these last twelve months I’ve seen Nigeria in particular popping up time and time again in marketing efforts for [Continue reading…]

As part of the order staying discovery in the TelexFree civil case until criminal proceedings are concluded, the court requested that the Department of Justice file a report on the status of the criminal proceedings on January 15th. As per this order, the DOJ’s filed status report sheds some light on the current progress of the [Continue reading…]

Sannderly Vasconcelos Rodrigues (Sann Rodrigues for short), was one of the top investors in the billion dollar Ponzi scheme, TelexFree. For his part in stealing over three million dollars from investors who joined after him, Rodrigues (right) saw himself named as a defendant in an April 2014 SEC complaint. As part of that case, which is [Continue reading…]

As per the local rules of the District Court of Massachusetts, the James Merrill’s attorney and the US Attorney’s Office (DOJ) have filed an interim status report. The report, filed ahead of today’s hearing (December 18th), provides some updates and insight into the status of the Wanzeler/Merrill criminal case.