SEC TelexFree investigation began in April 2013?
Despite Steve Labriola, TelexFree’s International Marketing Director, promising affiliates that “if there’s something going on we’ll let you know,” at the time of publication the company has failed to make any official announcement on the Massachusetts investigation.
Fresh from partying it up in Spain, Monday has all but come and gone in the US and nothing has been communicated to TelexFree’s affiliate-base. Well, nothing official anyway.
According to one Brazilian TelexFree affiliate, who had a “private meeting” with company owner Carlos Wanzeler at the recent Madrid bash, turns out Steve Labriola might be telling porky pies.
In a blog post subtitled “Carlos Wanzeler reassures everyone about the SEC investigation”, TelexFree affiliate Marcondes Domingues writes
I and my friend Fabio Fernandes had a private conversation with Carlos Wanzeler about the new compensation plan and on investigations in the US.
Wanzeler made it clear that the current plan is not outside the law, but (that it) draws attention no world market is prepared for the size (of the) gains (TelexFree pay out), and that creates suspicion in some countries. (This results) in the inevitable requests for documents and clarification, which is bad because the media report on these investigations.
In April 2013 the SEC requested documents which were delivered to them (by TelexFree) within the allocated timeframe. This happened again in last January (2014), but this is a normal procedure.
Domingues claims that Wanzeler “has no concern” with the SEC investigation.
First and foremost, April 2013?! And you’ve got Steve Labriola running around back in January telling affiliates
There is no investigation started or presented to TelexFree in any shape or form. There has been no initiation of an investigation.
What a crock!
With the SEC having contacted TelexFree for documents back in April, that means everybody in management knew they were being investigated. I find it hard to believe Wanzeler is having “private meetings” with top Brazilian affiliates yet his own International Director of Marketing has no idea of a US investigation.
The second request for documents in January appears to be behind the subpoenas ordering TelexFree officials to appear before the Massachusetts SEC this coming Wednesday. Unverified reports are claiming those issued with subpoenas to appear include TelexFree co-owners James Merril and Carlos Wanzeler, along with several top affiliate-investors.
Long time readers of BehindMLM will note the startling similarities between Wanzeler’s response to the SEC investigation and that of Zeek Rewards’ management, who infamously claimed an SEC investigation was part of “normal business operations”.
Following the revelation of a Zeek Reward’s regulatory investigation, affiliates, acting on information supplied to them by management, were claiming
the regulatory investigations were going to be “the best thing that could happen” to Zeek, (the company will) pay a minor token “admininstrative fine” that (the investigation) was just “standard business practice” and “nothing to worry about”.
Just a few short weeks later, the SEC shut down Zeek Rewards and filed court documents revealing it to be a $600M Ponzi scheme.
TelexFree have been accepting $289 from affiliates for investment positions on the promise of a $20 a week ROI for 52 weeks – for almost two years. Does anybody really think this SEC investigation is going to end well?