TelexFree @ BehindMLM

Following a weekend of protests by TelexFree affiliates over the business crippling injunction granted a fortnight ago, a decision on TelexFree’s second appeal was expected early this week. Earlier today Roberto Barros, President of Acre Court announced that the appeal will be heard in court next Monday (8th of July). No doubt the conspiracy theories [Continue reading…]

With TelexFree expected to file a formal appeal against the injunction that has effectively shut down the business in Brazil, news broke today that police in Acre are now investigating the company for possible money laundering activity. The Acre division of the  Specialized Police in Combating Organized Crime Taskforce (known as DECCO), announced yesterday that they [Continue reading…]

Following TelexFree corporate’s attempts at shovelling a mountain of misinformation onto their US affiliates last Saturday, I thought we might begin to see some sort of coherency between what was pushed onto affiliates and what was actually happening in Brazil. Following the release of a TelexFree US affiliate conference call held last Sunday though, that [Continue reading…]

Despite anonymous authors hitting press release spam sites over the weekend to  announce TelexFree had won their appeal on Friday, an actual decision was handed down early this morning. Not surprisingly, TelexFree lost.

Following the granting of an injunction to Brazilian authorities which resulted in the effective shutdown of TelexFree yesterday, the company scrambled to put together a conference call assuring affiliate investors in the US that legal action in Brazil would not affect them. Convincing affiliates in the US, appreciated financially as the “wet dream” market of [Continue reading…]

When news broke back in February that TelexFree was under criminal investigation in Brazil, many TelexFree affiliates went into a panic with the company’s then recent attempt at US market penetration stalling. Then, after the Ministry of Finance came out and publicly declared that TelexFree was “not sustainable” and “a Ponzi scheme”, court action escalated [Continue reading…]

Behind the VOIP mask, e-commerce programs, hotels and whatever else TelexFree attach themselves to is a simple MLM compensation structure: Affiliates pay TelexFree $299 for an AdCentral account and TelexFree in turn pay that affiliate $20 a week for 52 weeks. These AdCentral accounts can be bought in bulk, which then increases the $20 a week [Continue reading…]

In mid February we reported that Brazil’s Bureau of Consumer Protection (Procon) had launched an investigation into TelexFree, an MLM scheme run out of Brazil, back in January 2013. Procon’s investigation was concluded in February, with the bureau identifying “several controversial issues and possible crimes” in connection to the operation of TelexFree. Following their investigation, Procon [Continue reading…]

Last Saturday night I received an out-of-the-blue email from attorney and well-known MLM figure Gerry Nehra. Somewhat cryptic in nature, Nehra’s email simply stated: I wish to talk to and email with a person or persons controlling this web site about a recent posting. I am an Attorney specializing in the direct selling industry. Gerald [Continue reading…]

Using the old “invest with us, do pointless tasks for us and we’ll pay you a ROI with new investor money each week” business model, it comes as no surprise that authorities in Brazil have launched an investigation into TelexFree. On the 11th of January the Brazilian Bureau of Consumer Protection (known as Procon), after receiving [Continue reading…]