TelexFree Brazil ruled a Ponzi scheme, fined $782,512
There hasn’t been much news out of Brazil this year regarding the TelexFree Ponzi case.
Earlier this year the court-ordered expertise from independent auditor Ernst & Young was filed, citing evidence that revealed TelexFree was a Ponzi scheme.
TelexFree immediately tried to bury the report, but failed. Judge Thais Borges later remarked the report was “conclusive” enough for her to make a ruling with.
And on Wednesday the 16th of September that ruling was finally made, with Judge Borges concluding TelexFree is indeed a Ponzi scheme.
The first action taken against TelexFree in light of the ruling was the issuing of a $782,521 USD fine.
The fine is reflective of compensatory damages, and is in addition to TelexFree now having to pay back its Brazilian victims.
All TelexFree contacts between affiliate investors and the company in Brazil have been declared null and void, following Judge Borges finding that TelexFree is ‘a financial pyramid, not a multi-level marketing network.‘
As a consequence of the nullity of contracts, (TelexFree) was ordered to return to partners and publishers the amounts received by them by way of acquisition AdCentral and AdCentral Family positions.
How much TelexFree Brazil are going to be up for has as of yet not been disclosed, but I suspect we’re easily talking at least tens of millions of dollars here.
If any TelexFree contracts are found to have been created involving Brazilians, the company also faces potential $26,000 fines per account created.
Following the suspension of TelexFree’s business in Brazil, a number of top Brazilian affiliates continued to market the scheme through the US and Peru.
As of yet no word on potential clawbacks, but individual Brazilian affiliate net-winners will have their earnings deducted from any amounts claimed.
TelexFree’s Brazilian arm Ympactus has also been dissolved by the court.
The Acre Public Prosecutors case against TelexFree was first filed back in June 2013, with Judge Borges decision bringing a close to proceedings. Whether or not criminal charges are now filed against TelexFree insiders remains to be seen.
James Merrill is current under home detention in the US, but Carlos Costa and Carlos Wanzeler are believed to be living in Brazil (Wanzeler fled the US as a fugitive last year pending his arrest).
Brazilian publication Globo sought comment from TelexFree’s lawyers regarding the decision, but were only told:
Telexfree has not yet been formally notified (of the decision) and would only form a position after formally learning of the decision.
One can probably expect a few more sweaty videos from Carlos Costa… after which TelexFree will still be a Ponzi scheme.
Stay tuned…
at least. Justice condemns Telexfree by financial pyramid. Now we await hungry for news in the criminal case
i, for once, cant wait to see the next costa vid. what will he say now? the ‘natti are against him? lol
Thats Costa answer:
youtube.com/watch?t=1&v=LB86kpaLbNs
He accepts the decision to return the money to the persons involved…He asked that for over a year…. and afterwards he will still go to court…
Anyway, its probably the first time in the history of the world economy that i see a ponzi scheme paying back, all its victims!!!
Its my opinion anyway…
1. TelexFree doesn’t have enough funds to make all their investors whole.
2. How payments from TelexFree Brazil might be interpreted within the context of TelexFree US and related litigation remains to be seen.
Hi Oz, according to his statements, he can pay all the investors the full amount of their losses… Not the astronomic gains, obviously.
Do you have any other official info regarding telexfree funds? About number 2, I have to agree with you!
Not after all the net winners and Wanzeler and his lawyer spent a good chunk of that money…
Clearly, he’s just spewing… how do you say “caca” in Portuguese?
TelexFree paid out more than took in. Mathematically they can’t refund investors.
I joined TelexFree over a year ago … losing out on about $4000 dollars in my back office when they got shut down!
I certainly hope those FUCKERS get what they deserve !!!
It looks that the court has decided…
You can find it Here: diario.tjac.jus.br/display.php?Diario=3489&Secao=374
IN BRAZIL
economia.ig.com.br/telexfree/2015-09-24/telexfree-multa-bilionaria-da-receita-poe-em-xeque-ressarcimento-de-divulgador.html
if the government collect the fines and taxes there will not be a penny the promoters of Telexfree.
and more
joaldro.wordpress.com/2015/09/24/vitimas-da-telexfree-podem-processar-o-aliciador-ou-patrocinador-que-a-colocou-no-golpe/
Prosecutors guides that people who have not deposited in the accounts Telexfree that process who put them in the coup. already have a court decision in this sense that decided in favor of the victim and the offender fell foot the bill
I don’t they should be taxing fraudulent income. And I think it’s high time criminal charges were filed against Costa and Wanzeler in Brazil.
As to the victims, they’re unlikely to be barred from making claims in the US civil case. Unfortunately they have to first wait for the criminal proceedings to conclude.
Such is life when you buy into the Ponzi dream, I have little sympathy. Investors will be able to get some money back, they just have to wait it out.
Also,
That’s auto-translate, but doesn’t that mean not all the funds will be put towards tax?
Clearly, if the contracts are void, any taxes due on profits realized on such are void too.
What the audit did may be good enough to file a REAL tax burden, AFTER all the money had been returned…
Which clearly means there’s no tax to collect, esp. when the net winners had been paid out and can’t be clawed back.