Despite the widespread belief held by TelexFree affiliates that the three judges hearing the company’s injunction appeal today would overturn the decision, this did not take place.

In what appears to have been a rather brief hearing in Acre’s 2nd Civil Chamber Court, a unanimous decision was handed down denying the company’s appeal.

For now, the injunction that has effectively put a stop to TelexFree’s Ponzi operations in Brazil remains in force.

Not to be deterred by having two appeals rejected thus far, TelexFree’s lawyer Djacir Hawk ‘confirmed that the company will make an appeal‘.

From one of the Judge’s comments today however, it is pretty much guaranteed that any such appeal will be a complete waste of time:

“The law is the rule of the game and we can not go against the law,” said federal judge Waldirene Lamb when giving his vote.

To date, TelexFree have repeatedly argued that having a product automatically disqualifies them as being a Ponzi scheme. The reality that having a product or not has nothing to do with being a Ponzi scheme appears to be totally lost on them.

Shortly after the injunction was handed down TelexFree attempted to transfer $88M USD out of Brazil. Luckily, due to the injunction being in place, the transaction was thwarted.

Despite the attempted transfer clearly looking like an attempt to shift TelexFree’s funds offshore in breach of the injunction, the company’ lawyers attempted to explain away the transfers saying the funds were to “pay suppliers”.

Why TelexFree allegedly owed suppliers $88M USD was not clarified.

Going by Globo’s translate Portuguese article however, it appears Public Prosecutors are still conducting an investigation, the conclusion of which will have some bearing on decision(s) yet to be made by the court:

The TJ-AC will still wait for the opinion of the State Prosecutor to prosecute the interlocutory appeal.

Despite evidently having clearly breached the conditions imposed against the company by the granting of the injunction, TelexFree’s lawyers remain optimistic. In the face of being charged with being one of the biggest, if not the biggest Ponzi scheme in Brazilian history,

Djacir Hawk said that Telexfree is going through a ‘difficult situation’ because the locks but not at risk of bankruptcy’.

Horst Fuchs, another of TelexFree’s lawyers went even further, declaring

the new defeat (does not) endanger the survival of the company. There’s no chance of that happening.

Given that the injunction temporarily absolves TelexFree of its weekly ROI liabilities owed to Brazilian affiliate investors, I thought Hawk was stating the rather obvious.

How long TelexFree can continue to pay ROIs international affiliates based elsewhere in the world is unclear. As of yet no US regulator has announced any action against the company.

With TelexFree affiliates in Brazil urging their downlines to create fake accounts based out of the US in order to continue to withdraw their weekly ROIs though, there’s an increasing probability that TelexFree is going to pop up on the regulatory radars there.

Going forward, as I understand it TelexFree owner Carlos Costas has been subpoenaed for questioning by Public Prosecutors in Acre. TelexFree’s other two owners, James Merril and Carlos Wanzeler, appear to have fled Brazil following the injunction being granted but Public Prosecutors are attempting to bring them in for questioning.

Pending the outcome of those subpoenas, ‘the Federal Prosecutor has followed the case and possibly will also file a lawsuit against the company’.

Stay tuned…