TelexFree mediation fails, sky also still blue..
Yesterday saw the mediation settlement conference between TelexFree and Acre’s Public Prosecutors take place and, not surprisingly, nothing came of it.
Public Prosecutors announced last month that they would accept nothing less than the dissolution of TelexFree and immediate return of invested funds to investors.
In addition to this, they also presented what appears to be a legitimate business model that would see TelexFree affiliates actually sell VOIP to retail customers, earning a commission on each sale.
The catch is that the company would have to first return all invested money to its affiliates.
Not wanting to give up their $20 a week ROI Ponzi business model, TelexFree rejected this proposal. Carlos Costa then presented two alternatives of his own.
The first proposal appears to be the continued operation of TelexFree (registered as Ympactus in Brazil). Why Costa even bothered to make this proposal I have no idea.
The second proposal was a little interesting. Costa again sought the restart of TelexFree’s Brazilian business operations, but only to the extent that existing investment contracts (52 weeks) would be honored. At the conclusion of said investments contracts, TelexFree’s Brazilian affiliates would then be required to re-register with the company via their US operations.
What’s interesting is that Costa seems to be of the opinion that the US has no problems with a company taking hundreds of dollars from affiliates and paying them $20 a week from newly deposited money, under the guise of placing ads on the internet.
It also signals a willingness by the company to withdraw officially from Brazil, giving up a registered presence in their largest affiliate investor market.
With both of Costa’s proposals being rejected by Acre’s Public Prosecutors, it now falls on Judge Thais Borges to make a decision on Carlos’ proposals. This decision is expected to be handed down within 10 days.
On one hand a decision in favour of TelexFree would effectively see the court sanctioned legalisation of Ponzi schemes in Brazil.
A decision against the company would see the greater legal case against TelexFree continue, with Judge Borges stating that due to the size of the case it would not be decided upon until sometime next year.
10 days puts us at next Sunday the 24th. I’d assume Judge Borges will have handed down her ruling by Friday the 29th at the latest (ten business days).
Thus far at least one Brazilian Judge has openly referred to TelexFree as a “pyramid scheme” in court.
Footnote: There was a civil case brought about by an affiliate that was dimissed yesterday for “lack of jurisdiction”.
In handing down her decision, Judge Menez remarked
There is strong evidence of the existence of a financial pyramid, formalized in the contract between the parties (affiliates and TelexFree).
The case was filed in the 3rd Special Court of Mossley by a TelexFree affiliate against the company, with its dismissal having no bearing on the Acre case.
Just a correction to the first proposal by Costa: it’s actually the continued operation in Brazil by means of an insurance (“seguro” in portuguese).
He says he is able to get one. It is in the G1.com.br source, as well as in the released video exactly at 0:54.
Good that you mentioned he seems to be of the opinion that the US has no problems with his company. In my opinion, the US should have already started an investigation. I don’t know what they’re waiting for.
The ONLY reason I can imagine is because TelexFree is still small in the US. They’re big only in Brazil for now. But hey, the company roots are strongly branched in the US.
BY THE WAY, did you know a new company called WOLRDTELEXFREE, LLC was recently registered in the US? Check out its information: http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=nSdP%252f1OdhJ3zZ%252bbDXJtNwA%253d%253d&nt7=0
If I understand well the “list of officers due” field”, the list of officers/owners (which is still not provided) should be sent before the end of the year. Only then we will know if it’s a brand new branch of TelexFree in the US.
Who on Earth is going to insure Ponzi investments?
I love this guy’s reaction to Costa talking:
Hahaha, obviously no one. Many months ago, Carlos Costa claimed to have signed an insurance contract with Mapfre, only for this insurance company to release a press note the next day, denying it. Costa never went back to the insurance subject again, until today.
And that image is hilarious! 🙂
Anyone who watches the HYIP ponzi scene for long enough comes to realize the “US authorities” very rarely reveal what they are doing WRT investigating and investigations unless and until charges are preferred.
IM(very)HO, at the minute TelexFree USA is a lot smaller than it would have you believe and it is more likely to self implode before any investigation could be concluded.
It should be remembered investigations of such schemes takes on average 12 to 18 months and consume large amounts of resources.
Oz, just a quick note:
The decision the judge is “going to give within 10 days”, is not the “final” decision over the case. This decision is to take in consideration Carlos Costa’s suggestions to stop the “cautionary blocking” of the company’s assests and operations.
There is still the “main” court case, which is going to be held sometime next year, to officially determine wether Telexfree is a Ponzi Scheme or not.
Thanks for the clarification Frontier. Article updated!
Someone in Costas imagination, of course.
But that’s his excuse… He promises to find this “unicorn”, but in the mean while, let him operate the Ponzi. (roughly speaking)
Vantone Insurance Agency out of Hong Kong?
Lol!! The water is up to Costa’s nose in that sinking ship and he’s still gurgling something about “Let a Ponzi be a Ponzi” something or other.
The guy in that pic seems to have heard it all before. Time for a nap.
TelexFree’s Brazilian affiliates are furious at the prospect of their Ponzi scheme being shut down for good. At the mediation hearing yesterday Flávio Arraz (a TelexFree affiliate) was arrested for “contempt of authority”.
During the mediation hearing Arraz interrupted the hearing by announcing that the regulatory action against TelexFree was “nonsense”. Arraz also called Acre Public Prosecutor Alessandra Marques a “blonde she-devil”.
Apparently, at least according to Arraz, stopping people from losing money in unsustainable Ponzi scheme scams is nonsense.
Is there something in the water down in Brazil? What’s going to happen when they accept that TelexFree is a Ponzi scheme and turn on Costa?
I’m surprised he hasn’t already flanked himself with 24/7 security.
Disembowelment is the usual and customary.
Secretary William Galvin, please halt TelexFree the same way you did with WCM777!!!!
Having TelexFree operations interrupted in USA is KEY thing for accelerating its end. TelexFree still resists because its spreading to Dominican Republic, Peru and Portugal. And people from these countries are joining the Ponzi by registering with the american TelexFree LLC.
Killing its american version would leave only the troubled brazilian version alive, which is clearly unable to resist anymore.
I’m following the case telexfree, in practice they have postponed the decision to dissolve the company and return the money to Brazilian investors next year.
according to you if you dissolve the company in brazil because they affirm the ponzi, even telexfree america will be closed? and stops working? bisognera or wait for the SEC investigate?
but because in Brazil we bring a lifetime to figure out if telexfree is a ponzi or less, while in bbom are going to reopen their business with a new marketing plan?
I do not understand why the case telexfree hard to June, and have not yet made a decision
if telexfree america is independent of the Brazilian case, because the pay-processor says he has made of the checks is the company’s attempts to crystallize, because the SEC has not stopped it?
What awaits the more reason Telexfree and much more known than wmc777, they should stop immediately and instead, it is that we are all wrong and checks in America were already made and comply with the regulations is American? you know that start with packs on loan next year to prove that the product exists?
necessarrio will not put the money, the institutions make people laugh, we talk about ponzi for months, and all the companies are still standing in the world and are paying :))
Roberto, you do not seem to realize the way justice seems to work in the U.S. It makes no sense to go after small fish while they’re still small. It would be a waste of resources.
They wait ’til the fish grow big and heavy, then they go after them hook. line, and sinker. By that time, everyone is distracted with the money being generated.
When the doo doo hits the fan, they won’t know what hit’em and they’ll be scrambling for cover.
Is constantly living on the run some sort of wonderful way to live?
Roberto expects the Security and Exchange Commisssion to monitor every boardroom and meeting place on the planet and intervene immediately (if not sooner) to stop any suspicious or illegal activity.
Roberto is not very realistic.
There have been PLENTY of decisions made in Brazil.
TelexFree US is merely a “legal fiction” to keep the victims hoping.
If you want it shut down faster, send complaints to the SEC in the US via their website (one per person, only once) detailing your possible losses and emphasize you are talking about the US company that may be receiving funds from Brazil. And have your “friends” also do the same. When they get hundreds of complaints they’ll assign an investigator and take action.
My personal feelings is they already know, but it generally take several months. WCM777 case shows that Massachusetts know about WCM777 for several months before they sent WCM777 the cease and desist letter in September 2013. And we don’t know anything until yesterday when they made it public.
So in the meanwhile you complain to US SEC, with detailed documents explaining the problem, one per person, proof of loss, ONCE (no spamming), and have faith that justice will be served… eventually.
I do not know why Governments want to call any company that is helping poor or second class people just by putting their money is called ponzi.
Anyway, those ponzi are good to me.I am aware of the risks just like ti could be for any real business. I am only making $1000 a week in this business, but I have seen lives changing in this business with friends making and got paid $10000 a day. I say, a day.
My friends have promoted those businesses ( telexfree and WCM77) and he is now making over half of a million a month.he thinks that he would care if you keep calling them ponzi.
Me, I do not care because most companies become ponzi because of the Goverment and behindMLM. Why? if you want to destroy any good business even Walmart, start making big noise, call it Ponzi and start an investigation.
This is the problem: the most used argument for this Ponzi Scheme here is that it “is allowed to operate in U.S., and we all know that U.S. Justice works much better than our own”.
Carlos Costa, as you know, did announce the possibility to cancel all operations in Brazil and to operate only in U.S.: he has already his own network operating, as all the greatest “leaders” in Brazil.
It is only a matter of time…I believe Telexfree will operate no more in Brazil and they will try to maintain the scheme in U.S. and Dominican Republic, Paraguay, Colombia(?), etc.
There is still another problem. No one can complain about loss, because as the scheme expands (through many latin american countries) it is still receiving and paying.
The only thing we know is that someday it will crash and this is exactly why brazilian justice department cancelled all operations, fearing that more than one million people would lose a lot of money.
They don’t. Ponzi schemes are defined by their business model.
No doubt. Those who invested last will be in for quite a life changing experience. By “good to me”, I take it you invested early.
Never met an early Ponzi investor who didn’t sing the praises of their scam.
The world is full of all sorts. Some people have no problem sleeping at night with the knowledge of where their money comes from. You being friends with such people comes as no surprise.
Right. So I take it education was optional where you’re from then…
Because that’s illegal fraud, but I guess that’s not good enough for you?
They are not a bank, nor are they investment.
Yet they said if you give them money, they give you your money back over time, and a little more if you wait long enough. And do some tiny bit of work to delude yourself that you’re “working” for that extra money.
is that not fraud?
And where is that extra money coming from? As they don’t sell something that actually produce profit?
Do you not learn anything from DMG over in Colombia? Or is Spanish that much of a language barrier? At least DMG may be laundering drug money so average citizens may have lost a bit less than if it’s a PURE Ponzi/pyramid, but it’s still illegal.
Yet you sound just like one of those DMG believers who went on hunger strike for DMG. “Lo cree en Dios y David Murcia” was their chant (“I believe in God and David Murcia”)
You are operating on fe, or faith. That is a RELIGION, not a business or opportunity.
Perhaps, but submit the information ANY WAY, and just say it’s SUSPECTED Ponzi scheme, including all the alleged US information, all the Brazilian contacts, etc.
US *does* watch financial crimes. Massachusetts sent a consent decree to WCM777 in September, which caused it to depart the US and ran for Hong Kong. The consent decree specified that at least 160 victims, mostly Brazilian Americans. Start complaining, and have faith that justice will be served.
Oz: Something about the proposed insurance…
As Maurico Gomez has already noted, Carlos Costa did speak about an insurance from “Mapfre” some months ago.. He (and the so called Top 10) showed in different videos some papers as a “proof”.
Some days later “Mapfre” denied and Carlos Costa said that they were only analyzing his proposal. And he never spoke about this “fiasco” till now.
He told the press, that he proposed a Ponzi-insurance to the magistrates, but again, he DIDN’T show any proof that he already got one or any possibility of getting one. That is, he came only with the promise and only that.
If the magistrates accept, he goes on for some months with the Ponzi, takes all the money, etc.
The problem is that the poor people first will have to pay money OUT of their pockets, and most of them will get less money back. The “evil gub’ment” doesn’t like ideas like that.
That would string things out, but the more delicious possibility is that his cronies establish or take over an existing insurance company, the Court agrees to allow Telexfree to operate now that it has an insurer and Telexfree collects and pays enormous premiums to the newly established company.
Then Telexfree operates until it goes bust, declares bankruptcy and the “insurance company not only can’t pay on the policy but bankrupts itself too.
In a very crooked system this would work, but its also so obvious a ploy that an independent judiciary would not be fooled…at any rate I should hope not.
You have clearly got the idea. First you started to talk about poor people, and then you’re talking about $10,000 per day. “Being poor” isn’t about money, people can clearly have a lot of money and still be exactly as poor as they always have been.
I have a simple trading way in trading CFD to allow anyone who has knowledge and training in trading Google to double your account.
I doubt that you are, because the risks are not the same as with a real business which generally do not face a government shutdown.
Additionally even if you are aware as you claim to be, are the people you recruit equally aware? I doubt it. This type of “business” depends on misdirection, lack of disclosure and uneducated participants who believe what they are told.
You are a perfect example of this since you believe your friends are making $10,000 a day, even though you can see for yourself that you are “making” only $1,000 a week. By the way I hope you are converted all of what you think you were “making” to cash because until you do that you have not “made” anything.
Oh wait, I almost forgot. Now that Telexfree is shut down, you can’t withdraw any cash anyway.
I suspect you are a net loser carrying around big fat unfulfilled ponzi hopes which someone put in your head. Fortunately you apparently had little time to sell those false hopes to others.
Outstanding. I some swampland to sell you.
I see there are many haters on this place who are talking not on facts, but on emotion.You are probably the ceo or the big winners on those businesses that are not scams, but that are wasting people time.
They are makin money on fees and junk products that never work in most cases. I would better 10000% times to see that I waste my money that I could afford to lose any way, but at least I can get back 5 times if your predictions do not come true.
How about all those businesses that are paying over 30% a month and that do not accept us clients. They are doing pretty well.
What is SEC? SEC= USA only. I mean by that not all countries have the same rules. Not all businesses with are paying good and passive income are Ponzi.
For example, I had a business model that could allow people to make money from trading with no money from their pocket. I would loan them $200 and they will only pay me after they make money. With my strategy style of trading, I expect them to make $1500 for the month, they would then pay me $500 only if and after they make money.Otherwise, they do not owe me nothing.
Guess what? SEC has sent me a letter telling me that I am doing something that could be illegal without telling me what to do and how to fix this issue. I have contacted my lawyer who have sent them a letter and contacted them. i never got an answer.
Since I do not want to be in trouble even while I would have helped people and make millions at the same time. I shut the business out for US people and plan to make it hue overseas.Especially in poor country where people are in need of the $200 loan to start a life.IN USA, trading CFD or binary options are considering illegal.
Many Government from many others places do not have a clue about what it is?. Why they hate them that much? They are afraid Tax evasion and you won’t believe how many people will fight to keep you in poverty even the Government.
Remember, my lawyer has told me that you can tell people where to invest and what to trade even if I will be giving them my own money. You must be a registred broker with a license. Only in USA or not in my country anyway.
Hoss. Thanks for that.You will be surprised to know how many real lands that I owned In the Highland. As a man of God, I can’t simply believe in everything. I just can’t call something a ponzi without seeing their financial records deeper.
The so called legal ponzi does not work for me. I have tried them all. Amway, melaluca, herbalife, organo etc. I would better put money instead of wasting my time to sell their products.
I doubt anybody hates you personally, but your ignorance can not go unchallenged or it will spread.
For the record no legitimate company pays out 30% a month However, if you can identify and buy stock in the next Google, Amazon or Priceline type companies you could make several thousand percentage points on your invested capital. If you’re smart you will concentrate on doing that rather than spending your time with ponzis.
If your Google trading idea worked you would already have all the money you could ever dream of, so yeah, then there’s that.
Now about that swampland. I do not recommend it.
Logically it sounds interesting but if as you say, CFDs are illegal in the US then you need to go elsewhere (generally these are pitched to unsophisticated investors) and you should easily be able to discern why its illegal in the US.
See bucket shops** leverage, margin, speculation gambling and betting against the house.**
Now if you could really turn $200 into $1500 every month consistently it would certainly be a marvel…and humorously enough, more than you said you were “making” with Telexfree. So yeah, go to Australia or Great Britain where apparently you can write binary options for your own account all day long.
Unfortunately for your business plans, there are already about 3,000 “systems” for running CFDs already being pitched on the internet, which means you are starting with a pretty big disadvantage even if your system is the miracle you purport it to be, because its pretty obvious that everyone says the same thing.
You guys wanna know what everyone is talking about right now in Brazil about TelexFree?? There is a controversy about its logo.
A soap opera in Brazil aired yesterday showing a character accessing his international bank on his computer, and the bank logo appeared on his monitor… very similar to TelexFree logo. Take a look: http://tvg.globo.com/novelas/alem-do-horizonte/videos/t/cenas/v/thomaz-convida-fernanda-para-jantar/2958772/
TelexFree supporters are very angry for that. They say Globo TV (producer of that soap opera) is trying to link TelexFree to illicit bank operations through a subliminal message.
And there’s more!! Some guys discovered that TelexFree logo is not original. It’s actually a copy of the 2010 BWF World Championships logo. It’s a badminton tournament, as can be seen here: http://en.wikipedia.org/wiki/2010_BWF_World_Championships
It’s amazing to see that those Ponzi guys are not even capable of creating its own logo!!
I just want to give my 2cents in reality if you buy adfamily in telexfree it cost 1375$ and you have to put 1825 ads in a year and your real profit if you dont bring people is 1605$ in a year.
So the real moneymaking is in buying more packages in the company or creating a big network (buying more packages).
I don’t know where these people in Brazil figured out that every criticism to Telexfree is motivated by “emotions” (most times by “envy”).
Hoss: Your theory about the insurance company and Telexfree is really terrifying.
The fact that you haven’t found any law doesn’t mean a law doesn’t exist. Which country are you talking about?
Just a note: recently a major television soup-operas (“Novela”) producer showed a symbol that resembles the Telexfree Logo. Some people thought about suing the television network, and then we recently saw, that Telexfree Logo is a copy of this one: http://en.wikipedia.org/wiki/2010_BWF_World_Championships
Oz: have you or has anyone here noticed that ?
He’s talking about the US. I am not a broker-dealer but I know that those who are must take a State Exam and be licensed before they sell securities or manage the accounts of others for compensation. If he invests his own money this is not required.
What legitimate reason anyone would have to invest through others is not clear (tax evasion?), but His funding of people for a percentage of there profit clearly involves some kind of compensation. The investment system and control he would need to fund others is also a form of account management.
I am no expert but if he has an attorney that can not tell him what he is doing wrong I suggest no one is looking very hard. I think its more correct to say that he has not found a way around the law.
I knew I had seen that logo before.
“Only in USA, and not in my country anyway” was his statement.
Finanacial markets (e.g. banks, insurance, pension funds, stock exhange, etc.) are most likely regulated by laws in each and every country or state all over the world. That’s why I asked him to identify which country he was talking about, i.e. the country where he doesn’t need a license to sell CFD.
Overseas? Poor countries? His country? Everywhere but the USA. In countries where the people and government won’t fight to keep him in poverty. Who knows. He’s all over the map.
Its at least instructive that of the 100s of ways to make money legally in the markets, this guy chooses a method that the SEC prohibits hands down.
That’s why I asked him to identify it. 🙂
TelexFree is a Ponzi scheme based on its business model. It has nothing to do with emotion.
You want emotion?
Carlos Costa declared late last week that “God used him” to create Ponzi schemes.
When you have to start making stuff up, credibility = 0.
Have a cry son. Feel better? TelexFree is still a Ponzi scheme.
You are brainwashed for sure. Very few people envy Telexfree because most people see it for what it is and want no part of it. That is not that they would not like the money, but they are not willing to lie to themselves and others to obtain it.
Kinda reminds me when Craddock tried to silence me with “trademark infringement” of ZeekRewards when they don’t even own the TM (belongs to some “Ebon Research”)
however, all these guys online scams or ponzi also arise because there is no regulation of the law, if there was a law that would put in prison those who create these ponzi once discovered, no one would create more.
it is absurd that these characters become millionaires by putting on scam sites and then get away with it great, while the last aggreggano victims who lose money and ruin themselves, or even the contrary those who enter before it gets rich, or make laws to abolish these things or break out a pathos in the distribution of world wealth.
the banks are likely to not really serve more to nothing if it continues this way, for sure when the phenomenon will become big in Europe, in America, in Asia, the states will intervene too hard to protect the economic interests of bank.
That is an oversimplification of what is a very real world problem.
* There are tens of thousands of HYIP ponzis running on the ‘net as we speak.
* If you check the “usual suspect” forums, for example, there are probably two or three thousand “active” HYIPs listed there at any one time.
* Many / most of them are run by criminals who purposely hide their identities and locations.
* Anyone reasonably proficient and with access to the ‘net can have access to the instructions for how to manufacture explosives. Hiding a HYIP ponzi and its’ owners is mere childs’ play to those so inclined.
* It takes as much time and costs as much to track down the people behind a $1000 HYIP fraud as it does a $1 million fraud, ESPECIALLY when the fraudsters use the latest technology and resources to conceal themselves.
* More than ever before,internet age consumers are required to accept more responsibility for their own ‘net security than ever before. Sad, I know, but a reality.
* Taxpayers quite legitimately would complain endlessly if resources were diverted to chasing down every penny-ante internet scam.
* Would YOU be happy to pay higher taxes to set up a bust-all-the-small-internet-frauds government department or fund the FTC to employ an extra couple of thousand MLM investigators ??
* That is why forums and blogs such as BehindMLM are so necessary and continue to exist.
They arise because there is a market “out there” = a lot of people believing in the idea that internet is a good place to look for income opportunities, and that the best way to make money is to join some type of opportunity, and that ideas like that are “smart”. You will also find people addicted to ideas like that in that msrket.
Anywhere you can find a market, you will also find all sorts of people trying to make a profit from it, directly or indirectly.
A market will normally regulate itself, in terms of growth potential. How profitable a market can be will normally be determined by the VALUE it’s able to generate. Low value = low long term profitability = the problem will actually resolve itself in the long term.
That problem will resolve itself too. When a scheme collapses, they will lose most of their downlines. After a few yearss, most of them will become “former millionaires”, desperately trying to replicate the success they once had without succeeding.
Take a look at the video in the first comment by Mauricio Gomes. At approximately 2:00 (near the end of the video) someone in the crowd starts talking about TelexFree’s battle against the Brazilian justice as if it were a battle against the devil.
(O diabo nunca venceu Deus, e o diabo vai ser derrotado = “The devil has never defeated God, and the devil will be defeated”).
It is the guy that “fell asleep” in your picture hahahahaha
Funny thing is that I saw this video right after reading the post that says Costa said God used him to create TelexFree:
Your very right, I am joining Telexfree today and nothing these people will say that will STOP me.
Don’t forget to empty all of your bank accounts, mortgage the house and sell off any assets first. By all means, deposit as much money as you can into the scheme. Borrow from your family and friends, take out a loan, max out those credit cards, raid the trust funds…
I mean hey, if you’re going to go Ponzi why stuff around? Go the whole hog.
Has anyone here ever wondered why ???
1. In over 10 months of investigations no Brazilian public agency (including PF – equivalent to the U.S. FBI) got a single proof that the business of Telexfree’s to be in fact a pyramid scheme ?
2. Why does not exist no complaint or even a single complaint in court coming from at least ONE of the almost 1.5 million telexfree’s promoters in Brazil ?
3. Why 98% of the telexfree’s promoters in Brazil NOT WISH RECEIVE YOUR CASH BACK, BUT keep working on the Telexfree ?
4. Would be pyramid scheme a company which paid nearly $ 25 million (only in April and May of this year) to the Brazilian government in income tax; which has acquired its own headquarters in Brazil for more than $ 50 million; which has partnered with Western Union Hotels for building many hotels, one of them already in the final stages of construction in Rio de Janeiro, Brazil; which bought Vozbras (value – undisclosed), an operator of fixed and mobile telephony, Internet and TV in Brazil; that it has signed a partnership agreement with the 4 major networks in the United States to launch TelexMOBILE the next 3 months?
What are you talking about? TelexFree’s business model is all the proof they need. Some 40,000 plus pages of evidence have been submitted to the Acre court for review by Judge Borges.
Because the Ponzi hasn’t collapsed yet. And there have been complaints, several court cases have been filed but deferred or dismissed until the Acre cases are resolved.
Because, to put it bluntly, they are uneducated morons who fail to grasp how a Ponzi scheme works.
Sure. The only reason they did all that was so clowns can rave about it online in an attempt to divert attention away from TelexFree’s Ponzi scheme business model.
I never did. Why do YOU think the Prosecutor brought charges against Telexfree?