TelexFree @ BehindMLM

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.

A few days ago news broke that James Merrill and Carlos Wanzeler had been granted access to $400,000 in funds. Access was approved after the pair proved the funds were not related to TelexFree. Left hanging in the balance from last Tuesday’s hearing was $4 million Merrill had previously requested, with the outcome of his [Continue reading…]

One of the recurring themes in Carlos Costa’s sweaty TelexFree news updates, was the assertion that the Brazilian IRS had gone over TelexFree’s books and certified the company legitimate. Costa asserted as much with the knowledge that the IRS would not comment publicly on their report, and that the only other party with a copy [Continue reading…]

Prior to TelexFree filing their bankruptcy petition, James Merrill, Carlos Wanzeler and other TelexFree insiders collectively sought to make off with almost $40 million in stolen investor funds. When the FBI, Department of Homeland Security and Immigration and Customs Enforcement raided TelexFree headquarters, accountant Joe Craft was caught red-handed trying to make off $37.9 million dollars in cashiers checks. [Continue reading…]

As required by Local Rule 116.5, yesterday the US government provided an update on the discovery process in the case against James Merrill and Carlos Wanzeler. Founders of the billion dollar Ponzi scheme TelexFree, Merrill and Wanzeler were indicted on charges of fraud and conspiracy back in July. The government has provided substantial discovery to date, [Continue reading…]

Operation Orion was launched by Brazilian Federal Police back in July. The launch of the operation saw Brazilian regulators execute search warrants on multiple properties connected to TelexFree’s Brazilian operations (Ympactus). As of yet the results of those raids are not clear, however it is understood that the “second phase” of Operation Orion is now underway. [Continue reading…]

News broke a few weeks ago that the firm charged with conducting an audit of TelexFree’s Brazilian operations had requested an additional 120 day extension. By my records this is the second extension Ernst & Young have sought, with the first requested and granted back in July. Ernst & Young trotted out the same reason [Continue reading…]

Early last month the Department of Justice, who are currently handling criminal proceedings against TelexFree owners James Merrill and Carlos Wanzeler, asked the District Court of Massachusetts to order a stay of discovery in the SEC’s civil case. The DOJ argued that Without a stay, Merrill and perhaps Wanzeler – charged in both actions – would use the [Continue reading…]

It was always a bit ridiculous that the owner of a billion dollar Ponzi scheme fancied himself a viable candidate for Federal Deputy… but it was one we had to watch play out nonetheless. Widely seen as an attempt (miscalculated or otherwise) to dodge legal responsibility for his role in TelexFree, over the last few [Continue reading…]

As part of our continued coverage of the aftermath of the TelexFree Ponzi shutdown, today we again focus in on the claims of defendant Faith Sloan. Sloan, along with several other top investors is currently being sued by the SEC for her involvement in TelexFree, a billion dollar Ponzi scheme.