SEC: TelexFree is “disturbingly cult-like”
Yesterday saw the filing by TelexFree co-owner James Merrill, asking the District Court of Massachusetts to grant him pre-trial release. Charged with wire fraud for his part in the running of a $1 billion Ponzi scheme, Merrill was arrested on May 10th and is currently awaiting trial.
Merrill’s arguments for pre-trial release largely centered on ties to his family, the local community and comparisons to Carlos Wanzeler, Merrill’s partner in crime who fled the US upon realizing we was likely to be arrested.
The basic gist of the motion was that, $1 billion Ponzi schemes aside, James Merril (right) was a swell guy and unlikely to flee.
Hell, on face value Merrill’s motion more than successfully portrays him as a harmless old man who naively got caught up in something his long-time friend orchestrated. He even had me convinced by the end of it:
I do think Merrill might have a solid argument to justify a pre-trial release. Especially if any or all of the following proposed conditions are imposed.
I still think under condition home detention, GPS monitoring the surrendering of his passports that Merrill’s release might still be justified. But gone is any sympathy I might have had.
Today the SEC their opposition to Merrill’s motion, and with it comes a boatload of information that’s likely to enrage TelexFree affiliates wondering where their money is.
First and foremost, the SEC address Merrill’s heavy reliance on family ties and his alleged good-standing within the Ashland, Massachusetts community.
In his motion, Merrill argues that he has substantial local ties. There is no question that he does. But as analysis shows, highlighting Merrill’s local ties misses the point.
This is not the usual white collar case. It doesn’t matter how strong Merrill’s ties are to Ashland, Massachusetts, or how many of his friends or family express support or help post bond.
These are familiar elements of many white collar cases, since most white collar defendants live otherwise normal suburban lives.
You have close ties to your family and community? Yeah… and? So does every other white-collar criminal out there.
Ironically, it is these very ties (particularly to his family) that Judge Hennessy held against Merrill (right) in his detention hearing:
In my view, it’s a double-edged sword. The strong ties that the defendant has to his children and his commitment to them is both a reason he would stay here, but also a reason that he would flee, in order to avoid the fact that he may go to jail and be separated from them in that way.
If convicted, ‘Merrill faces an advisory Guideline range of life (by about seven levels)‘. At what point as the case progresses is it no longer credible to argue against him fleeing on the possibility of being permanently separated from the family that apparently means so much to him?
Judge Hennessy was fully aware of Merrill’s ties to the community, but, as that judge noted, they must be balanced against Merrill’s potential
connections abroad. That is, focusing on Merrill’s local ties is focusing on half of the evidence.
And that brings us to unavoidable reality pertaining to Merrill’s involvement in TelexFree. Specifically the fact that, should he choose to, Merrill would be quite capable of fleeing the US and “setting up shop” elsewhere.
Note that the following isn’t from the SEC, it’s from Judge Hennessy himself (he granted the original detention order):
As indicated at the outset, the offense, and I’m not saying that this was the defendant’s intention, but the offenses created a number of substantial ties for this defendant outside the United States: In South America, in the Caribbean and Europe.
In these places, there are bank accounts that may or may not be under the control of the defendant, or that may have funds that he can access, but as the co-owner of Telex, as one of its founders, as the person with signatory authority, as one of the faces of the company, it’s fair to infer that the defendant is in a position where he may be able to finance a life outside the United States to avoid the charges here, and that is probably the principal concern of this Court.
In contrast you’ve got Merrill’s motion, which focuses squarely on the known bank accounts he had his signatory privileges removed from as part of the TelexFree bankruptcy circus.
What about all the TelexFree bank accounts held “off the books” though?
TelexFree has substantial assets overseas. The government has managed to freeze millions of dollars in United Kingdom and Singapore accounts, but various accounts remain unfrozen.
There is a TelexFree account in Cayman with the Royal Bank of Canada. It remains unfrozen and the account balance is unknown. Similarly, the government has seized a $10,000,000 cashiers’ check made out to TelexFree Dominicana SRL – TelexFree’s Dominican entity – but no Dominican accounts are frozen.
Finally, in or about 2013 Merrill and Wanzeler traveled to Singapore, where we know there are three accounts in the names of TelexFree and Carlos Wanzeler. One of these accounts is frozen, but not the other two.
And keep in mind these are the accounts that regulators in the US currently know about. At last count there was around $100,000,000 (down from an initial $300,000,000) of TelexFree funds that remain “unaccounted for”.
These same funds are what Carlos Wanzeler (right, with Merrill) is using to fund his new life in Brazil. Is it really a stretch to suggest he wouldn’t be instrumental in setting up his old buddy (in Brazil or elsewhere)?
Wanzeler has access to substantial funds and has been Merrill’s close friend for 20 years. Years ago, Merrill sponsored Wanzeler and his wife for their green cards. One witness has described the two men as “like brothers.”
According to bank records, in February 2013, Wanzeler gave Merrill a check for $865,000, using funds drawn from TelexFree’s Brazilian operations. In December 2013 – around the time he withdrew $3,000,000 for himself – Merrill authorized the transfer of about $7,000,000 to Wanzeler from TelexFree accounts.
The real risk here is not Merrill fleeing to Brazil, but Wanzeler helping him from that location.
And even if one were to discount Wanzeler, what of the vast global network of TelexFree Ponzi supporters scattered throughout the world?
Like many “multi-level marketing” companies, TelexFree has a disturbingly cult-like quality. Egged on by the company itself, promoters spoke of “reaching their dreams” and being “100% TelexFree.”
TelexFree’s promoter extravaganzas – in the United States, Brazil and Spain, among other places – were recorded and posted on YouTube. These events had a “boisterous . . . rock concert atmosphere,” at which crowds of promoters cheered James Merrill when he took the stage. Merrill would have the crowd “do the wave.”
As the “American face” of TelexFree, crowds of foreign promoters lined up to have their pictures taken with Merrill; his wife conceded that he was “treated like a minor celebrity.”
In or about November 2013, TelexFree rented a cruise ship and invited thousands of promoters to join a cruise off the coast of Brazil. Merrill addressed the crowd of (at least) hundreds from the promenade deck, helicopter hovering in the background.
Thousands of these promoters do not live in the United States, but in Canada, the Caribbean, and Central and South America.
Thousands remain fanatically loyal to the company which, despite the bankruptcy and three government enforcement actions, they see as helping hard working people make a little money on the side (see binder of hundreds of letters of support for TelexFree, submitted by promoters worldwide in the SEC civil action).
According to Canadian corporate filings, Merrill and Wanzeler are the directors of TelexFree Canada, the Facebook page for which lists 7,691 “likes” and shows dozens of supportive messages, all written after the bankruptcy and enforcement actions were filed.
Merrill and Wanzeler are also the directors of TelexFree’s Dominican entity.
This is nothing, however, compared to TelexFree’s presence in Brazil, where thousands of Brazilian promoters took to the streets in June 2013 when the Brazilian government sued TelexFree’s Brazilian entity for running a pyramid scheme.
This happened again when enforcement activity ramped up in the United States.
Finally, Merrill’s network of supporters is not just overseas. He knows several TelexFree promoters in the United States who made substantial sums with the company, and would be in a position to assist him.
Many TelexFree promoters, at least the earlier ones, made substantial sums from their involvement.
Furthermore to the SEC’s points above, evidence of TelexFree affiliates helping TelexFree management escape prosecution already exists.
The car Carlos Wanzeler escaped the US in was driven back from Canada to Wanzeler’s wife by none other than two TelexFree affiliates (surnamed Nunes). It is believed that while Wanzeler lay low and waited to board a plane to Brazil, he stayed with the Nunes and/or other Canadian-based TelexFree affiliates.
Should Merrill flee in the face of spending the rest of his life behind bars, that a support network exists for him outside of US jurisdiction is certain.
Add to that the hidden TelexFree Ponzi funds under Wanzeler’s control and Merrill could easily see out the rest of his days living comfortably off stolen Ponzi riches.
Given that phone records reveal that Wanzeler and Merrill were in communication on the day Wanzeler fled, and that he was arrested on Route 9, a local highway that runs between two international airports – is it really plausible that the above doesn’t even “remotely support (Merrill’s continued) detention”, as his lawyer suggests?
There is no “new evidence” that the Court must now consider. There is only new counsel’s conviction that he has a better handle on the case than prior counsel.
But new counsel wanting his own shot at it is not a justification for doing all this again.
Merrill is over 50 years old. He potentially faces life in prison or, even if something substantially less, still a sentence that may keep him imprisoned into his senior years.
Facing this kind of personal disaster, in light of available refuge elsewhere in the United States and overseas, bond is not reasonably likely to keep him here.
Also note that, as Judge Hennessy observed, this case is fundamentally about deceit. As Merrill and Wanzeler revved up investors, they hid the fact that TelexFree was a huge, teetering, pyramid scheme.
See 5/20/14 Trans. at 14 (“The second thing about the offense is that it involves deceit. This was a scheme that depended on TelexFree constantly recruiting new promoters, and the defendant played a very large role in that deception.”).
Someone willing to maintain that deception for months and years is someone who would consider finding ways to avoid this Court’s reach.
For better or worse, Merrill was one-half of the ownership team that ran TelexFree. With his partner avoiding prosecution and continuing to live off stolen investor money stashed away in hidden offshore bank accounts, despite a preliminary injunction in place, it’s an incredibly difficult argument to make that, should he be released, Merrill won’t uproot his family and follow suit.
Perhaps not in Brazil, but when you’ve got potentially millions in Ponzi funds stashed away, the possibilities are endless.
With a hearing set for June 5th, stay tuned for a ruling on Merrill’s pre-trial release later this week.
Footnote: Our thanks to Don @ ASDUpdates for providing the SEC’s objection to Merrill’s pre-trial release.
Did Merrill hold citizenship in Brazil?
IMO, it would be very hard for Merrill to leave the US if all the conditions of his pre-trial release are met.
Also, it’s not like people are in love with him everywhere. If he chooses to flee, it is possible that he may have worse coming to him in another country in terms of punishment or even vigilante justice.
In which case, he (and Wanzeler) would come running back to the US to spend their time in a relatively cush prison here.
The risk is too great – keep him in jail.
The “cult-like” features aren’t the major problem. First, cults are NOT illegal, it’s the real crimes that are committed within the cults, such as illegal pyramids and RICO fraudulent tool scams.
Secondly, many legitimate non-MLM sales organizations have similar features, even fans at football games partake in activities that could be called “cult-like.” I encourage everybody to focus on what is illegal, not on the “cult-like” features, which is merely a diversion and enabler of the criminal behavior.
In the respect that Merrill enjoys cult leader like status and it might be assisted to escape or hide by cult members, its a relevant to the Motion to Deny Bail.
Agreed. I never said it was irrelevant.
The cult-like features are among the major dangers. Prime-bank and HYIP swindles thrive — despite obvious internal inconsistencies — owing to conspiracies of silence and attempts to hoodwink or blackmail people into not filing complaints or not interacting with the government.
Such was the case with AdSurfDaily, Zeek and, now, TelexFree.
Surf’s Up, the ASD shilling site, was infamous for railing against Big Brother while simultaneously serving as the Thought Police. People were denied access to information they needed to make informed decisions. Various misinformation/disinformation campaigns were waged. The cultists believed they could suppress the victims’ count.
Same thing happened with Zeek, starting with bids to poison the well against the receiver.
With TelexFree, I’ve seen everything from pre-SEC, pre-raid claims that the “program” was backed by President Obama and the SEC to post-SEC, post-raid claims that the government was trying to dupe people into providing evidence against TelexFree.
Throw in political extremists, organized criminal downline groups and “sovereign citizens,” and you get an extremely dangerous cocktail. Anarchy is at the end of that road.
Over time I’ve come to believe that the presence of the cultists improves the odds we’re eventually going to see a criminal RICO prosecution.
There is precious little doubt that some of the folks are going to have ASD, Zeek, WCM777, Profitable Sunrise and other “programs” on their fraud bona fides. And there is no doubt that these schemes create an untenable security situation.
Well, they’re both symptoms… and methods to KEEP people in the scam. I’m sure you’re well aware of the tactics employed by various “Amway Sales/Support Organizations”, so I won’t repeat them here.
It could be argued that the tactics employed, esp. if done on the Internet, constitutes wire fraud, and if perpetrated by a group, racketeering. One hopes the Feds will go in that direction: charge all of the top promoters as a group.
Yes, technically being a “cult” is not illegal in itself, but the lies being told by cult leaders would be fraud, as can the various “community reinforcement” be considered fraud as well.
Looks like we all agree.
I do agree, the problem will be the burden of proof by the prosecution, it´s not going to be easy to prove that there was an organized criminal structure set and used by the top promotors, that is the 101 for a possible “RICO” prosecution….
Remember that “RICO” prosecutions only started to work when some “weasels” started to plea bargain in exchange for legal protection from crimes they committed our from fear of the “Cosa Nostra”, so unless some of the “big birds” of Telexfree start singing there is very little chance of a “RICO” charge…
In another matter Sann Rodrigues is in Brazil and he is not coming back to the U.S.A…so one less bird to sing…
I don’t see a strong RICO case here, either. But there are plenty of other charges, so don’t be pessimistic.
Quick, somebody take a photo before the moment passes!
You’d think that, yet we have Rodrigues, Costa and Wanzeler living it up in Brazil – the country they duped the most people and stole the most from.
Carlos Wanzeler has been seen a plastic surgeon in Poços de Caldas MG. I believe he may be changing his appearance and fingerprints.
He come wearing wigs with ponytail as disguise.
^^ Seen by whom?
I would have to agree.
If not in the Telexfree case, certainly sooner rather than later.
When revenue from the nominated “product” is less than 1% of total revenue, said revenue is over $1billion, there is more than one person driving the scheme and the scheme has been running internationally for more than two years, it is going to be almost impossible to claim a scheme is an MLM gone bad or mismanaged and is NOT racketeer influenced and corrupt.
When we’ve already seen several of those behind schemes charged not with running a pyramid or ponzi, but with fraud, wirefraud, money laundering and conspiracy, the jump to adding RICO charges seems a natural progression
Well the only indicator of the remote possibility of “RICO” charge is in my modest opinion the involvement of the FBI…but once again some top dog whit credible information of the inner works of the scheme would have to give testimony and taking in to account the kind of persons running the scheme.
Looking at their background, I can only think of one that could manage to do real damage and that person is “Joe Craft”…also i think that the (IRS) is being way to quiet in all of this maybe telexfree promotors will have a nasty wake up call by the end of the year…
There seems to be a lot of posts at cross purposes here.
PPBlogs’ original comment was:
(capitalizing and bolding of “eventually” mine)
To which my reply included:
Neither post indicates RICO charges will or would be be taken against Telexfree.
To expand on my original comment, since the involvement of the Financial Fraud Enforcement Task Force, there has been a progressively noticeable difference in the way ‘net fraud cases have been handled, and it’s hard to see RICO charges not being on the horizon.
This (Telexfree) is not simply a group of “good ol’ boys” making a few bucks on the side.
On the contrary, it is precisely the type of multi million dollar Racketeer Influenced and Corrupt Organization for which the RICO Act was designed to combat.
RICO is hard to prove, so normally only blatant cases are prosecuted.
Companies like Herbalife and Amway that have well established tool scams are more likely targets. These “side businesses” are normally run by the upper level distributors, and supposedly exist to provide training and motivation for the downline; they also secretly (at least secret/unknown to the prospect and downline, the internets has shined a bright light on them) throw off 10 times or more the profit for them than the advertised MLM business does.
Yet, the upline pretend and lie by omission that their lifestyle comes from the MLM profit.
The MLM company goes along with this lie and profits as follows: these upper level distributors don’t want to rock the boat over high MLM product prices and low bonus payout, both of which increase the MLM company profit, because they’re cleaning up on the tool profit.
The MLM company doesn’t want to clamp down on the tool scams because then the tool sellers would take their groups and leave to another MLM that is okay with this lie, and then the MLM company would lose volume and profit. And both the companies and the tool sellers like the high downline turnover rate that results from high MLM product and tool prices; this maximizes cash flow and the rate that new people, with relatively full bank accounts and lower credit card balances, the MLM company and tool sellers can feed on.
THIS is RICO fraud, and even the author of the RICO law agrees: http://www.amquix.info/blakey.html
I don’t think TelexFree had the time to develop such sophisticated systems, but I’m sure they would have gotten around to it eventually.
Look up TelexMax, operated by Lelio Farias. From what I understand, it is, or used to be, exactly the kind of tool you have described. It was specifically and publicly designed to maximize Telexfree gains, and is now being used to promote other scams, like a GDI based one.
Hard to tell what it is, did they sell tickets to meetings, books, CDs, websites, voice mail, etc.? If so, you’re right.
There were a few different products that were being offered to Telexfree affiliates. First was the service to clear up members credit. They said time and again that they were offering this so that you would know how to handle your money when it started flowing in.
Then there was the program that would place your adds for you for a small charge. This was necessary because placing adds is so back breaking.
They did charge people to attend rah rah meetings. The whole Best Western investment scam blew up on them.
There was talk several times about bringing in a coffee product. I giggle when I hear the Telex management and lawyers trying to make it sound like Telexfree is a legit business. What communications company sells coffee lol.
Dorothy, these items were related to TelexMax?
Here in Brazil there were people pushing some “telex energy drink”. That always made wonder: what a crappy marketing team is that to associate telecomm + energy drinks? Maybe IT professionals need it? WTF?
I heard at one point that Steve Labriola was working with a wig company to market hair pieces for men….lol…lol.
Ok, I’m just kidding.
No, if you are looking for that, maybe it doesn’t fit.
TelexMax is a tool designed by Lelio Farias – Brazilian TelexFree big fish, formerly from DiskaVontade, used to run a cleaning business in Sarasota, FL. It was designed specifically to maximize TelexFree gains, but can be used with any MLM system, and is currently being used with GDI.
It optimizes all marketing/spam operations, assists you in team building and allows you to bring your entire downline with you each time you jump from one scheme to another. It also allows to run many schemes at the same time, with centralized management at TelexMax.
It has its own backoffice, with a considerable degree of sophistication.
It is used to hide and conceal the real company where the scheme operates, replacing it with the TelexMax frontend.
It allows you to design your own ponzi or pyramid on top of an otherwise apparently harmless business opportunity, by calculating binary compensations, bonus, etc. in TelexMax based on the investment you design, while the money is still paid by the target company, never TelexMax.
It seems to be used mainly to design personalized ponzi/pyramids on top of MLM companies (or other Ponzi/pyramids) maximizing gains using self consumption (the affiliates buy the products in order not to use them, but to get the commissions, and pay their upline comissions, etc).
Sounds like RICO 2.0!
Only the first tiers of the team are organized in TelexMax, and only them travel from scheme to scheme.
They “work an MLM opportunity” (in their own words) until it is exhausted, then jump to the next.
They work the scheme using the best possible approach to maximize gains (investment vs return) and use it systematically in the downline, allowing for a quick and guaranteed return until the thing breaks.
Since the money flow never passes through TelexMax, which is a platform, and not a company, they possibly are shielded from regulators interference.
I’ll bet the right regulator could figure out a way to prosecute the platform. There has to be people behind any platform.
A trustee has just been appointed!
The person behind it is Lelio Farias, and it is registered at his Sarasota, FL residence. But he lives in Brazil now, and seem to only go there in vacation – he was there last Christmas, promoting TelexFree / TelexMax.
He is a close friend of Carlos Costa, BTW, though considerably more clever and less annoying than him.
No decision on Merrill’s pre-trial release yet:
And with Stephen B. Darr accepting the role of US Trustee in the bankruptcy, we now wait for his first course of action.
Once again…I feel confident the case is in good hands. Boston Strong!
Oz, TelexZombies are one step ahead of everyone (as always, hehe) and already spamming the web saying that the BK as been accepted and there’s even an official document to prove it:
Oh, ho……I can’t hold myself……….
This proceeding is only the begining. There is tax fraud and many other legal actions to follow. Claw backs to those that think they’re free and clear.
If the main 8 don’t go to jail they will still have years of misery and legal bills that will be breathtaking. Hope all these guys have wives with good jobs to support the future legal fees.
Steak on the grill tonight honey? Ummm well nooo but I shot a squirl in the back yard today….hear it tastes just like chickin…
I saw Globo put out an article with the headline “US Court accepts TelexFree bankruptcty”. That was a bit disappointing to see coming from a major newspaper.
That is totally not what is happening. TelexFree functioning normally? I wonder how much Kakay had to front to get them to publish that…
They did state TF’s lawyers were unable to state how the bankruptcy would affect the SEC freeze (surprise surprise), so it seems they’re got the background info for that writeup from TF’s Brazilian lawyers:
I get this kakay clown might have some political clout in Brazil, but he’s clearly not a reliable source of information.
This translation has not the intended meaning of the original:
The intended meaning is more like:
As you see, this is a lot different.
I’m brazilian and I’m not familiar with the “bond” meaning in this context. What is this? The minimum value the trustee can try to recover from any single person?
Thanks for the translation Ryan.
So basically TelexFree’s Brazilian lawyers think the US Trustee is a good thing. Man, heads up asses much?
You can’t really blame Brazilian affiliates for being clueless if these lawyers are making public statements like that.
I think the bond is some sort of liability insurance thing.
Yes, we can!
Lawyers here are allowed to say all kind of BS. Any brazilian that put trust on what a lawyer says over evidences and clues deserves to be scammed.
He has posted on his FB wall, 17 hours ago, that “After two weeks on our beloved Brazil I’m back to the United States.”
There’s a vídeo of him saying something about MLM regulation in Brazil, thanking his “amigos” and NOT mentioning or showing any medal.
Unlike a US Trustee who is an employee of the Department of Justice, Stephan B. Darr, the appointed case trustee is not a government employee but a DOJ approved and Court appointed administrator. He is a private citizen and thus capable of being sued for his actions.
A bond is similar to an insurance policy which guarantees that judgments against the trustee will be paid up to the bond limit.
Potential claims against trustees are many but allegations of self dealing and favoritism to the detriment of creditors are perhaps the most prevalent.
It has nothing to do with recovery limits from any single person.
Nevada denies TelexFree’s telecom application:
Somebody needs to inform the clown attorneys in Brazil that their restructuring fantasy isn’t happening anytime soon.
You mean, it was accepted AGAIN? The US judges must be a sorry bunch of senile old man, they keep accepting the same thing over and over again… In the eyes of TelexDorks, of course.
The new Telexfree Trustee is from Mesirow Financial a consulting firm that handles LOTS of big bankruptcies (they did United Airlines for example)
Stephen Darr is pictured in this webpage
We try… we really try. But look what we have to fight against. All these “breaking news” are published on a blog called “Encontrei na Rede” (translated into “Found on the Web”, more like, “Found on a Trashcan”). Their news crew is like telexdorks on steroids.
Here’s the latest news published in the last 2 days:
After every “amazing news” there’s tons of comments like “yeahhhh… we won!”, “suck it SEC!”, “woohoooo… so long pyramid accusations!”.
It’s very, very pathetic to watch…
Usually it’s not worth the efforts fighting against campaigns, at least not before you have solid information contradicting the other information.
“Solid information” = court documents and other offial sources, or articles based directly on “quality sources”.
You will also need to find the right type of audience, “the ones interested in your information”.
Here’s a tip from me.
Use Ponzitracker.com as a primary source (before BehindMLM) when you offer sources. It’s much easier to get an audience of ANY TYPE to accept him as a source.
He operates under full name Jordan Maglich. He’s a qualified lawyer. He writes for Forbes.com (Forbes Magazine). “If he’s good enough for Forbes, then he’s probably god enough for you” is a valuable argument.
If THEY have got a famous Brazilian lawyer to add credibility to the information, you should get something similar. Ponzitracker is exactly that (in the eyes of an audience).
Here’s one article:
You only need methods like that as “ice breakers”, simply to get people to accept your first post / your first few posts.
I have some other tricks too, but start with that one.
A third tip.
Offer ACCESS to information rather than writing long posts yourself. Try to find out what people can be interested in, and link to “valuable sources”.
People will manage to find themselves what they’re interested in, but sometimes you must point them towards something specific (e.g. point people directly to specific (relevant) documents rather than to a general list of court documents).
ASDupdate –> SEC v Telexfree
ASDupdate –> TelexFree criminal case
KCCLLC.net –> bankruptcy documents
I can probably find some other sources too. Only a few people will be interested in court documents, but those people are important. They’re the ones making trouble if you don’t offer the right types of sources.
Does anybody believe this or any other blog making comments will have any impact on the legal cases? I surely don’t.
What kind of real “trouble” are these people causing?
Faith Sloan still pleading her complete innocence and shooting in all directions to dismiss her preliminary injunction.
She even says she kicked up a row publicly with Labriola and Merrill about the mismanagement of Telexfree, and was menaced by them with expulsion from the company shortly before 13 April.
She says she wrote it in her FB page, but I don’t recall ever seeing anything even close to that there…
Did you look at her FB page?
My friend Faith Sloan is not guilty of any of those charges and she is not happy with your comments guys.
And I am 99% Telexfree.
She’s charged with being a “prominent promoter” of TelexFree, and all the details related to that.
You accepted the March 9th changes in the compensation plan, the conversion of back office funds to TelexCredits, the stop in withdrawals, the bankruptcy where they try to eliminate all debts to the promoters, and only lost 1% confidence in the company? 🙂
Yes, I used to see it before all this fuss, but I don’t recall ever seeing there anything like what she describes.
What’s the other 1%?
We’re not happy with you and her being scam artists. Now what? LOL
ROM, – So she took it all down?
After all that has happened the past 2 months – how can anyone with a pea sized brain be 99% Telexfree still? 1% I might understand….but not 99%
She seems to have take down almost all entries before 14 May. In any case, I never, never recall seeing there anything close to what she claims. She seems to be lying with all her teeth there. In any case, the court only has her word for that, which is the same as nothing.
I don’t think it was meant to be interpreted literally as 99%. It was probably meant as “I do still have some confidence in TelexFree (or do still support it), even if I’m not happy with all the things that have happened in the last few months”.
If she took down things that exonerated her, then she’s stupid.
I think the 1% is an admission of stupidity.
At this point, it looks like she has taken down her entire public Facebook profile. We’ll miss FS sharing her wonderful (and incriminating) life with us… NOT
See the below blog post which shows FS going on a rant about the changes in compensation plan.
She doesn’t specifically mention Merrill or Labiola in her rant but it is believable that she many have pissed off the management and possibly been threatened with expulsion. In the days after her compensation plan change rant, she did take a softer tone and appeared to be more supportive of TF in general.
FS: Yo, TelexFree has always been about selling VOIP, that’s what the owners and their lawyers told me.
Judge: So, what happened when TelexFree changed their business model to force you to actually sell VOIP?
FS: I got mad and started looking at Lucraz- I mean… wait, what? Oh you meant VOIP, not VOIP. Booyah?
Yes and after Merill, Wanzeler, and Costa personally come to your house and gang rape you, I’m guessing that you might bump it down to 98% TelexFree hahahaha
If that happened, it would go back up to 100%. LOL
She’s actually pleading to TelexFree to launch a real product, instead of being all about compensation plans.
I admire her guts for writing that rant. I wonder how someone apparently so smart, educated and intelligent seems to dedicate her life to this kind of mediocre schemes like TelexFree and the others she’s been in.
I stand corrected, she seems to have challenged the company at some point – although, as you say, such attitude seems to have faded our very quickly.
In any case, it’s impossible to believe that the same person who does such a fuss and so many calculations about the comp. plans change, has failed to understand that the first comp. plan was plainly a Ponzi, as she claims now.
She’s still quite active in FaceBook.
Possibly she has two accounts and you’re only seeing one of them. The one she’s active in has a picture of her with a red shirt and a yellow turban.
Whoa there Kemosahbee! I think that you are giving this scam artist too much credit 🙂
She definately did not plead TF to launch a real product. She just mentioned this in passing as part of her rant expressing her frustration with
1) the new comp plan (where she and her sheeple recruits would actually be responsible for selling product rather than memberships) and
2) the general lack of communication by TF management toward their promoters even after massive changes in company direction (I don’t think that TF ever provided official details about the new comp plan even up to the point they were shut down).
Lets just look at what she said in reference to TF focusing on the product:
I think that this is actually incriminating for her as it shows that she knows that TF did not have a viable product in hand and YET she was openly and enthusiastically promoting the company.
BTW regardless of what she said at one point in the past or how you interpret it, the overall picture is clear- of a serial scam artist that uses her business knowledge, experience, and intelligence to get people to join fraudulent business opportunities.
Found it… You’re right she does have 2 accounts. I wonder if she will so openly continue to share with us when she is behind bars.