TelexFree @ BehindMLM

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…]

Yesterday saw dramatic scenes unfold at TelexFree’s Massachusetts’ head office, culminating in police being called to the scene to remove the company’s affiliates from the building. What we weren’t sure on at the time was who called the police. Luckily local Boston media were on location, with Wicked Local’s Daily News Staff reporting it was Steve [Continue reading…]

Despite the uncertainty over TelexFree’s ever-changing new compensation plan, those that had previously invested funds before March were reassured their weekly ROIs would continue to be paid out. This made little sense considering the company was under SEC investigation, but was largely seen as a way to keep their existing investors happy. I haven’t seen [Continue reading…]

Earlier this month, Massachusetts Secretary of State William Galvin’s office revealed that they were investigating a Marlborough-based telephone marketing company that has already been banned in Brazil for running a pyramid scheme. The inquiry stemmed from the office’s investigation into a similar company that was accused of targeting Brazilian immigrants in Massachusetts with a multi-marketing scam, [Continue reading…]

Confusion surrounding TelexFree’s new compensation plan is still abundant, but general consensus among the company’s top affiliates seems to be the adoption of either a three or five position approach. Affiliates purchase three or five positions within the company (a minimum of one primary plus two secondary positions is required for commission qualification). Provided enough [Continue reading…]

There’s been a lot of talk over the last few weeks over the R$500,000 the state of Acre has been ordered to pay up in the TelexFree case. General consensus is that it’s a legal strategy with TelexFree hoping that the case will be dismissed because Acre, one of Brazil’s poorest states, won’t foot the [Continue reading…]

Following a month-long investigation into TelexFree, Rwanda recently decided to ban the scheme. Upon announcing the decision, the Rwandan Ministry of Trade claimed TelexFree’s activities were “similar to that of a pyramid scheme” and raised concerns it was facilitating money laundering. Now, in a followup report released by the Ministry, the Rwandan government is accusing [Continue reading…]