Following the business crippling injunction won against TelexFree, Public Prosecutors in Acre have followed up with a civil lawsuit filed against the company.

Alleging that TelexFree is a Ponzi scheme, the case was filed in the 2nd Civil Court of Rio Branco and is being heard by Judge Thais Borges. As is required when all public civil action cases are filed in Brazil for the benefit of consumer-awareness, Judge Borges published the notice last Monday.

TelexFree have presented their defense and I am currently hearing from the Public Prosecutors.

Then I will evaluate whether any further evidence is required to be produced, if it is, I will request it produced, if not I can pass judgement.

The notice is valid for twenty days, indicating that one way or another the case will be resolved by Saturday the 21st of September (more likely to be either Friday the 20th or Monday the 23rd).


Update 7th September 2013 –After some initial confusion it appears that the twenty day period is granted to allow consumers to respond to the case.

After the twenty day period the case will progress forward with the further presentation of evidence (if required as per the Judge’s comments above) /end update


In continued attempts to get the injunction against the company lifted, thus far TelexFree have presented no less than thirteen separate defences in Brazilian courts, with each having been rejected.

Having not seen the defense filed in the civil action case myself I can’t say whether or not a defense they have already used has been recycled for the case. One would think after thirteen lost appeals that the options left open to TelexFree to defend their business model and compensation plan would be all but exhausted.

In the past TelexFree’s lawyers have claimed that ‘should the company spend a few more days being prohibited from signing up new investors, they would have no money to pay the old ones‘.

Meanwhile TelexFree and its Brazilian affiliates don’t appear to be confident in how the Acre civil action (and no doubt subsequent criminal action) will turn out.

In addition to top Brazilian TelexFree affiliates publishing YouTube videos in which they urge their downlines to create new American TelexFree affiliate accounts to continue to invest in the company, last week an address in the UK quietly popped up on the Brazilian Portuguese language portal of the TelexFree website:


As of yet the company has made no official announcement explaining why the address appeared. Prior to the publication of the address, TelexFree wasn’t known to have any publicly known executive presence in the UK.

With James Merril and Carlos Wanzeler still currently hiding out in the US, perhaps Carlos Costa is planning to announce an extended European vacation over the next 20 days.

Stay tuned…