TelexFree @ BehindMLM

In contrast to US TelexFree affiliate leaders busying themselves censoring social media groups of factual information and demanding artificial positivism from those who invested under them, Rwandan Telexfree affiliate leaders are considering legal action against the company. The news comes as yesterday Rwandan affiliates called on their government to intervene and recover losses incurred by Rwandan TelexFree [Continue reading…]

One of the more dangerous side-effects of making a lot of money in Ponzi schemes, is the blowback you get from your downline when the scheme inevitably collapses. An old-hand at scamming people in such schemes, Sann Rodrigues, being TelexFree’s top Ponzi pimp, is arguably now in the most dangerous position of all. His exit [Continue reading…]

Just a brief update on this (working on some lengthier articles for later publication). Earlier today TelexFree’s payment processor, iPayout, pulled the company’s ewallet services offline.

Over the past twenty-four hours I’ve been seeing a lot of genuine concerns raised by TelexFree affiliates being answered with the proclamation that tommorow April the 17th, the company will be given permission to restart business operations. Mostly pushed by Portuguese speaking TelexFree affiliates, social media related to TelexFree has been flooded with claims like [Continue reading…]

Ever since the SEC investigation into TelexFree was officially confirmed, I’ve found myself repeatedly pointing out to disillusioned TelexFree affiliates that the running of a Ponzi scheme for nearly two years cannot be negated by cosmetic product changes. Nor can it be erased by a “too little too late” compensation plan change. Hell, not even [Continue reading…]

In the wake of TelexFree’s emergency filing for Chapter 11 bankruptcy over the weekend, Steve Labriola was once again abandoned by TelexFree’s owners and left to face the company’s affiliates alone. Appearing telephonically on a hastily announced call and sounding more spectator than corporate management, Labriola tried to appease TelexFree affiliates with what little information [Continue reading…]

It wasn’t even a week ago that I wrote about the maths behind TelexFree’s 2013 profit and loss statement not adding up. Using conservative figures, I estimated that by the close of 2014 TelexFree would be liable for around $1.14 billion dollars. With the company taking in $689 million in 2013 (what would probably be their [Continue reading…]

A profit & loss statement recently filed in the US state of Alabama provides some insight into the financials of TelexFree. Marked as an exhibit of an “application for interexchange authority”, the statement reveals that for the year 2013, TelexFree took in $689 million USD from their affiliates. Affiliate commissions and other expenses ran up [Continue reading…]

No doubt as a result of the TelexFree narrative taking on a life of its own these last few weeks, ironically due to a complete lack of communication by the company itself, yesterday saw the release of two official TelexFree corporate marketing videos. Featuring Steve Labriola, TelexFree’s “Director of Business Development”, the two videos revealed [Continue reading…]

In Zeek Rewards, affiliates invested real money which the company then exchanged into “VIP Points”. VIP Points were an inhouse virtual currency that was used to manage affiliate ROIs and re-investment. 1 VIP Point was claimed to equal $1, until the SEC stepped in and shut Zeek Rewards down for being a $600+ Ponzi scheme. [Continue reading…]