TelexFree owner arrested, criminal charges filed
Ever since those forfeiture notices were issued at the Nevada bankruptcy trial, we’ve been waiting for the US Attorneys Office to show their hand. And on Friday morning they did just that.
TelexFree co-owner James Merrill has been arrested on “conspiracy to commit wire fraud charges and his partner in crime, Carlos Wanzeler is now a fugitive in hiding.
Wanted on the same charges, Carlos Wanzeler’s whereabouts are currently unknown, however it’s believed he fled to Brazil shortly before the arrest warrants were issued.
TelexFree and its management have always insisted they’re willing to co-operate fully with any and all regulatory investigations and related matters, but apparently that doesn’t extend out to the arrest of Wanzeler.
For those unfamiliar with the charge, wire fraud
is any fraudulent scheme to intentionally deprive another of property or honest services via mail or wire communication. It has been a federal crime in the United States since 1872.
With TelexFree being a $1 billion dollar Ponzi scheme that owed around $5 billion in monopoly money to its investors, it naturally falls under the category of a “fraudulent scheme”.
The US Attorneys Office complaint against Wanzeler and Merrill (right) is supported by an affidavit from Homeland Securities Special Agent, John Soares. Soares’ affidavit tells a familiar story. It contains the same information we’ve been publishing here at BehindMLM for nearly two years now.
Soares’ affidavit starts off by explaining TelexFree’s fraudulent business model, and concludes
(TelexFree) derived only a fraction of its revenue from VOIP services – about 1% of TelexFree’s hundreds of millions of dollars in revenue over the last two years.
The overwhelming majority of its revenue came from new people buying into the scheme. In fact, TelexFree was only able to pay the returns it had promised to its existing promoters by bringing in money from newly recruited promoters.
The affidavit then goes on to cover TelexFree running out of money, launching bankruptcy proceedings to try to escape their Ponzi liabilities and Joe Craft’s attempt to flee with what was left of TelexFree’s money. They also touch on the Brazilian regulatory investigation, mentioning that Brazilian authorities have $350 million dollars of TelexFree funds frozen by court order.
Details of the money laundering entities Joseph Craft set up for Wanzeler and Merrill are also revealed:
Wanzeler testified that TelexFree Financial was created to pay the employees of TelexFree because they “have so many problems with the banks”.
This appears to be a reference to US banks repeatedly shuttering TelexFree accounts in 2012 and 2013 because of concerns Merrill and Wanzeler were doing something illegal.
TelexFree used so many accounts in a roughly two year period because US banks, following their protocols for deterring money laundering or other financial misconduct, repeatedly shut them down and forced Merrill and Wanzeler to transfer the funds elsewhere.
Joe Craft, TelexFree’s financial advisor and CFO, would later argue with the SEC that he had no part in TelexFree’s fraud. As part of negotiations that would later “break down”, Craft demanded the SEC remove any verbiage that indicated he had any responsibility or had a hand in any of TelexFree’s criminal activities.
i-Payout, TelexFree’s last payment processor following stints with ProPay and Global Payroll Gateway (GPG), also come under fire.
Agents reviewed records provided by i-Payout. The records show that in 2013 i-Payout recorded 52,562 payments to TelexFree totalling $66,036,927.
Of these, there were 2153 invoices for $49.90 (the monthly VOIP cost), totalling $107,434, or less than 0.2%.
Despite helping to facilitate the obvious fraud taking place at TelexFree, in October 2013 i-Payout had the gall to write to BehindMLM to protest our TelexFree coverage. i-Payout sought to assure us that they’d conducted “complete due diligence on TelexFree”, concluding that the company was “compliant with all US laws”.
Both ProPay and GPG had the sense to boot TelexFree as a client once they realised what was going on. i-Payout though couldn’t resist the lure of fees generated from TelexFree’s Ponzi activities, ultimately sticking with TelexFree and cashing their checks until the end.
One would hope i-Payout have since terminated whoever was in charge of their due diligence dept.
Undercover sting operations conducted by Homeland Security agents are also revealed in the criminal complaint. Detailing an attempt to purchase TelexFree VOIP (which took two hours), and the infiltration of a TelexFree promotional event:
On March 9, 2014, members of HSI, some in an undercover capacity, attended the “TelexFree New Compensation Plan”Conference at the Mariott Copley Place Hotel (in) Boston, Massachusetts.
Even as TelexFree’s management and top promoters sought to convince the affiliate-base at large that they were still viable (despite running out of money), US regulators were there amongst them building a case – recording everything that was said for later use as evidence.
While TelexFree management took to the stage in Boston to try and convince everyone their VOIP mattered, undercover agents observed
Neither Merrill, Wanzeler, nor any other TelexFree executive mentioned that the company actually generated only a fraction of its revenue from selling TelexFree’s VOIP product, and instead depended on generating revenue from new promoters that could be used to cover TelexFree’s payment obligations to existing promoters.
Wanzeler specifically, was caught out lying:
Wanzeler said, among other things, “Over 600,000 customers paid $49.90 to TelexFree99.”
Based on extensive review of TelexFree’s banking activity, credit card activity, and portions of its backoffice data, Wanzeler’s statement… was false.
In their testimony to the Massachusetts Securities Division, both Wanzeler and Merrill reaffirmed that 580,000 people bought VOIP packages in February 2014, and Wanzeler “guaranteed” that most of those people were “outside” retail customers.
But 580,000 customers each paying $49.90 would have generated $28,942,000 in revenue from VOIP sales, and thousands of $49.90 entries in TelexFree’s bank and credit card processing records.
That revenue does not appear in TelexFree’s bank and credit card processing payment records in that time frame.
As to “back office” activity, that would involve promoters, or people recruited by promoters, buying the product, and such persons would not appear to be legitimate “outside” customers.
And people wonder why I make such a big deal of pointing out retail viability in my MLM company reviews…
Accompanying the US Attorneys Office criminal complaint is a press-release from the Department of Justice, which sums up the criminal matters TelexFree are now facing:
James M. Merrill and Carlos N. Wanzeler, principals of TelexFree, Incorporated and related entities, were charged today in a federal criminal complaint, charging them with conspiracy to commit wire fraud.
Merrill, 53, of Ashland, Mass. and Wanzeler, 45, of Northborough, Mass., were charged in a one count criminal complaint filed in U.S. District Court in Worcester, Mass.
If convicted, each face up to 20 years in prison.
Merrill was arrested today by federal authorities and made an initial appearance in U.S. District Court in Worcester. A federal arrest warrant was issued for Wanzeler who is a fugitive.
United States Attorney Carmen Ortiz said, “The scope of this alleged fraud is breathtaking. As alleged, these defendants devised a scheme which reaped hundreds of millions of dollars from hard working people around the globe.”
“I am very proud of the tireless efforts of my special agents. Investigating the flow of illicit money across U.S. borders and the criminal enterprises behind that money is one of our top priorities,” said Bruce Foucart, Special Agent in Charge of Homeland Security Investigations.
“While pyramid schemes are nothing new, the potential scope of this case will hopefully serve as an educational lesson for all. The main point is clear; if it sounds too good to be true, it probably is.”
TelexFree reported sales of $1.016 billion, while known sales of the TelexFree VOIP product represented less than 0.1% percent of TelexFree’s total revenues.
United States Attorney Ortiz, SAC Foucart and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Cory Flashner and Andrew Lelling of Ortiz’s Worcester Branch Office and Economic Crimes Unit, respectively.
The DoJ close out their press-release by asking victims
of the alleged TelexFree, Inc. scheme (to) please send your contact information to the following address:
I’d also urge that if anyone’s in Brazil (or elsewhere) has seen Carlos Wanzeler, that they get in touch. Wanzeler is a wanted fugitive now who is up on criminal charges.
Meanwhile to the TelexFree “leaders” still uploading YouTube videos and Facebook updates: The time for filing silly “we love TelexFree” letters in court and putting out false and misleading information is over.
Shit just got real.
Footnote: My thanks to Don @ ASDUpdates for providing additional documentation for this article.
now Telexfree will fly behind bars
This made my day.
It finally happens!!!! This is the last thing that Telexfree need to finish it journey!!!
What Carlos Costa will say now???
Hey OZ, do you think the bankruptcy review meeting for the 27th will still happen, or will it be considered moot? WIth all these criminal charges it would make sense to just throw away this ridiculous bankruptcy petition.
It’s scheduled so yes. The hearing will probably last about 5 minutes to allow for the bankruptcy application to be formally rejected.
Oz, where is the criminal complaint??
And this can be 20 years!!!! Wow… This dude don’t know that this can happens when he start all this? I am trying to imagine their mind now in the cell. Is it a federal cell?
Lol, why we don’t start a campaign to send letter to him!! He will be alone now. Where is he?
By the way, oz, how difficult is get harbeas corpus? He will be indefinitely in jail now?
The spelling is ATROCIOUS…. It’s having the GALL to do something, not the GAUL.
Thanks for the pickup. Must have had Asterix on my mind when I wrote that.
Crim complaint was sourced from ASDUpdates @ https://sites.google.com/a/asdupdates.com/files-website/telexfree-criminal-case
What is happening with carlos costa, its he safe from jail?
As of yet no formal criminal charges have been filed in Brazil. They’re sitting on $350 million dollars of frozen funds however so I imagine something will be filed eventually.
The civil case has been predicted to be ruled upon by mid-year, which is coming up. Last I checked they were preparing expert testimony.
TelexFree and Costa are likely to be less confident going forward though, and with the added possibility of Brazilian regulators striking while the iron is hot (as in the next few weeks) with criminal charges of their own, deals could be made.
One also cannot rule out the possibility of regulatory cooperation between Brazil and the US. Acre Public Prosecutors mentioned this last year (alluding to an SEC investigation) but it was ridiculed by TelexFree at the time.
At this stage other than that, we know what you know.
It should be noted Costa was singing the praises of the US judicial system just last week or the week before. I recall him stating that, from a regulatory standpoint, he wished Brazil was more like the US.
Dear mr. Oz; you’re doing a fantastic job! is it any possible to me – or anyone else – making a donation to you?
Here’s what Sann Rodrigues posted on his FB page a few minutes ago (translated from Portuguese):
Careful what you wish for, Mr. Costa… 🙂
I appreciate the thought but we’re good. BehindMLM is a free information resource and I intend to keep it that way. Sit back and enjoy the coverage!
If you do have spare money lying around, use it to buy your mother something special for tomorrow!
I think Rodrigues must have spent the last few days watching Gerry Nehra compliance videos…
There’s no other way to to promote TelexFree… it’s a Ponzi investment scheme (AdCentral positions) with a pyramid scheme component (the recruitment/referral commissions).
Call it “mother’s milk”, “happy time payments” or whatever you want, you’re still pimping investment positions in a pyramid scheme.
Oh get the fuck out of here Sann. Enough bullshit. Time to sell the Ferraris, the house, kiss your wife goodbye and tell your kids “daddy’s a lowlife scamming shyster”.
You’re going to jail. Goodbye.
My question is, with all of the stolen money they stashed, why didn’t these guys just take some time to at least put a down payment on two cots in a prison somewhere for a “rainy day”?
It’s like these clowns planned all along to end up in prison, but they just wanted to play “Catch Me If You Can” for a little while until the feds caught up to them.
Guess the thrill of the moment and the 15 minutes of fame is too enticing to pass up for some folks.
One need only look at the twenty something rejected appeals in Brazil to ascertain TelexFree management aren’t the sharpest tools in the shed.
Perhaps they figured they’d have months to escape, after all the Brazilian civil case has dragged on for some time now. An inflated sense of self-confidence is all too evident in Carlos Costa’s YouTube rants (turns out God doesn’t step in and save Ponzi schemes after all).
I figure Wanzeler jumped on a plane the second the Nevada bankruptcy verdict was handed down. He was probably already at the airport waiting for a call from his lawyer.
Those forfeiture notices issued on May 2nd were as clear an indication as any of what was coming…
Dear mr. Oz. so, if its free of charge, and taking this chance you’re reading the comments, I suggest you to take a step closer to another brazilian (who would say that?!) mlm coming in your way. it’s called “paymony” and they advertise it’s own currency (called emony) as some sort of crypt-currency as bitcoin.
weirdly they’re currency is largely accepted in their own trades! (who would thought that(2)?!). there’s a 4 hour video on the web in which one of their “associates” try to sell a land rover and helicopter – I mean, emony – to one undercover expert – better than watching forrest gump..
And I guess they’re just a bunch of dumb, unethical guys who got lucky. I bet they thought it would be just another small scheme, as the others they have previously done, and that it would end just like so many others: people disappear and justice could not do anything.
Remember: Costa, Wanzeler and Merrill were partners in crime for a long, long time.
Don’t think of those as the “three musketeers” ’cause they’re nothing more than “three blind mice”.
Ask him to preserve all his net winnings for the clawbacks? 🙂
Search bar is at the top right of every page.
Another upcoming MLM crap is one calles LUVRE .. Which is supposedly about reforestation and contracts regarding such.. My neighbor made over 30.000 REAIS in a month.. He keeps inviting me in… It’ll be interesting to know more about that scheme..
And OZ you are the man bro.. Thank you for this blog and all the info..
Here’s our friend Robert Love on May 7th. He’d just heard that the Nevada bankruptcy proceedings had been moved to Massachusetts:
Here he is again 27 minutes ago, upon learning that James Merrill and Carlos Wanzeler have been criminally charged:
When Love first learnt about the SEC investigation?
Oh and let’s not forget:
And you Brazilians thought your affiliates alone had a monopoly on stupid. Ha!
It has been reviewed:
I don’t believe anyone have had the time to look more closely at Paymony after that review.
“Internal currency” is normally one of the signatures you can expect to find in a Ponzi scheme, e.g. payouts to a back office that can be used for reinvestments.
A payout to a back office is similar to a PROMISE = “we promise to pay you this amount (if we have enough money coming in from other investors)”.
In TelexFree, you could use that promise to purchase more AdCentrals or to pay for VOIP subscriptions. It doesn’t make the promise worth $289, $1,375 or $49.90, but people can clearly BELIEVE in ideas like that. It failed when too many people wanted to withdraw MONEY rather than having PROMISES in their accounts.
If I promise to pay you $100 per week for posting ads, and you can pay me back with my own promise when you purchase something, it will eventually become a lot of empty promises.
Merrill’s in jail till a bail hearing next Friday. Govt considers him a flight risk and the court agreed. No news on Wanzeler yet.
See update note at PonziTracker:
Oz, you’ve become popular and our best source of info for Dominican Republic via Twitter.
An economist by the name of Alejandro Fernandez had been warning people about TelexFREE in Dominican Republic for some time now and has received many death threats. Also, the most popular investigative reporter in DR did a piece on her show about TelexFREE…
The Dominican authorities are doing a good job so far of going after the top “promoters” that are spread throughout the country and their properties will be seized. I think if this goes through and there’s justice in this case, it’ll be a first in DR and it will change the way people view the justice system.
It’s a big opportunity to step up to the plate. We have a great Attorney General Francisco Dominguez Brito so things are looking up and up. Thanks so much Oz!
Oz, I’m sad to say but it’s unlikely that a similar arrest would happen to Carlos Costa in Brazil.
The current penalty for Pyramid Schemes is 2 years maximum, and usually they cut a deal to fulfill it otherwise, with community service, etc. Because the maximum penalty is so short, it’s really rare anyone will get arrested for that.
BUT… if they accuse him of evading or laudering money, escaping taxes, or any other charges, then we CAN be arrested. And God knows when that’s gonna happen…
Let’s just hope that justice is done! But it’s only a hope for now…
Glad to hear the DR isn’t a complete writeoff.
That’s a bit depressing.
I’m guessing “I’m better off facing Brazilian regulators than 10-20 years in a US jail” is what went through Wanzeler’s mind as the bankruptcy ploy failed.
How do dual-citizenships work? Does Brazil still refuse to extradite?
I assume by fleeing Wanzeler also intends to keep his stolen money (guessing he hasn’t repatriated any of what he’s apparently stashed in Asia).
Here’s hoping they’re all eventually brought to justice.
What’s going on with telexfree site in China, its up and running? telexchina.com
Isn’t that just some random Chinese affiliates website?
It’ll be up until they pull it down.
(Ozedit: Yeah it is. Click the second navigation menu and then the fourth option. It tries to redirect you to the TelexFree website under the account “whf888”. Returns 404 because of the TelexFree shutdown.)
Oz, Do you know if Wanzeler was learning chinese lately, to me that chinese webpage has a login for some reason.
Local Chinese-language downline support group?
I remember the SEC mentioning Chinese banking but other than that I don’t recall a Chinese (Hong Kong) link.
With the amount of scams using i-Payout, I’m starting to think they offer Chinese banking services as part of their regular MLM payment processor offering.
They use a bit of Chinese in Singapore too.
I wish to see the mugshot of James Merril.
Good point!!!! In USA EVERY one that was arrest has a mugshot? And this is public? Great idea, maybe we can get it.
OZ, what about it?
Anyone, no one know how to get it?
I read one report that said they arrested Merrill while he’s travelling on MA Route 9, which is a state highway that parallels Interstate 90. To the east, it goes straight into Boston… and Logan international airport. To the west, it goes into Worcester, and Worcester regional airport.
Have no idea where Merrill is actually going, but it’s clear that HSI scooped him up before he *could* go anywhere.
Hey, what about it? Is James merril being arrest? Look here: telexfreedricontabil.blogspot.com.br/2014/05/suposta-foto-da-prisao-do-james-merril.html
He had completely changed look and style when he was arrested. 🙂
thanks god I never signup for telexfree … I felt that the company was a scam. but a lot of people that was involved they know that was a scam but everyone was happy making money with simple 20 mim job published ads..
but carlos is not the only guilty I think all the people that signup they also should be held responsible too. they all eat together and party together..
I am from brazil and I had people from brazil aksing me to enter the company and thank god I never enjoy them .. plus the owner was cristian believer 90% of the telefree member was from cristian church. that is a shame….
LOL but i want the real one.
Unhappily not true: Arrest Date: 2013-09-17 3:10 am
Sorry is a Fake, the original photo is here:
Picture from a Telex recruitment blogspot? Seems legit. 😛
For those who are interested in the amounts involved, the Affidavit by John S. Soares in support for criminal complaint has some additional info about the amounts, e.g. in point 57 (page 18 of 28).
BRAZIL – $446 MILLION “KNOWN TRANSACTIONS”
According to Wanzeler, the government of Brazil froze around $350 million in June 2013. Total amount paid in to TelexFree through bank was $446 million. In January 2013, TelexFree had $200 million deposited in bank accounts. All amounts are for Brazil.
USA – MANY DIFFERENT INTERPRETATIONS (TelexFree’s own numbers)
Income through bank
LLC $119 million + INC $56 million = TOTAL $175 million
Income through “system” (back office)
LLC $572 million + INC $169 million = TOTAL $871 million
Commission payouts through bank
LLC $50 million + INC $20 million = TOTAL $71 million
Commission payouts through “system” (back office)
LLC $572 million + INC $279 million = TOTAL $841 million
1. “System” is probably back office AND e-Wallets.
2. All amounts are from TelexFree’s “Profit and Loss”
BANK ACCOUNTS (money IN from promoters)
a. Bank of America, June 2012 – May 2013 $12.2 million
b. TD Bank, October 2013 – January 2014, $6.2 million
c. TD Bank, 1,550 * $1,425
d. TD Bank, 1,800 * $1,425
CREDIT CARD PAYMENTS (money IN from promoters)
a. ProPay, $29 million
b. GPG, $37 million
c. i-Payout, $66 million
Unless it’s made public I don’t have access to Merrill’s mugshot.
That’s obviously fake. Who wears a shirt with a purple color that transitions to bright white at the waste? Additionally the head angle is off, aside from being out of proportion with the rest of the body.
And now, due to that fake photo, telexzombies are celebrating, saying Merrill was not arrested and/or that he was just “called to explain some things to police”.
Looks like “telexfree syndrome” is hard to cure.
TELEXFREE Breaking News #777 with Carlos Costa(Just for fun):
in view of the present situation of things with Telexfree, where do I stand as a promoter who has just joined? How do I recover my money back….?, Or will the organisation still continue to exist despite the arrest of the Principal actors..?
Can someone help me out with an answer as I never got nothing from the advert placement I did for the organisation since I started.
Steve Labriora, Randy Crosby,Faith Sloan, Kelly Tolar and others should also go to prison.
ASD Updates have a ton of documents up now in their google docs page. Document 97 stood out for me. People sending their “seal of approval” of telexfree to the Boston Court. Some letter are a joke, with drawings and doodles…. come on folks, this is serious stuff! You’re not sending homework to your 1st grade teacher… this is a federal court for pete’s sake! Judging by those letter, I can see why they felled for this scam in the first place.
Preliminary injunctions (via endorsed/consent orders) have been granted against all involved (including TelexFree itself).
Craft tried to demand the SEC exclude his accounting firm, they agreed but only at a later date (details need to be worked out. Craft objected and that’s when communications broke down.
Judge sided with the SEC and granted their version of the proposed order. Now any and all of Crafts’ employees are subject to breaching the TRO. One interest side-effect concerns whether or not Craft quarantined the TelexFree money.
If he didn’t, he just exposed all the staff at Craft Financial Solutions and Craft Trust services to a boatload of problems (everyone has to declare and return if they have TelexFree money).
TelexFree is dead and facing criminal charges.
You will have to wait and see what develops re. recovering of funds.
….and to “those persons in active concert or participation with them that receive actual notice of this Order by personal service or otherwise…” etc etc.
In other words….to every promoter with ears.
A couple of friends just introduced me to LIBERTAGIA .. which is supposedly a MLM in which there is no initial investment involved..
c’moooonnnn!!! they said you get 3 dolars a day.. just by clicking on stuff… GET A JOBBBB!!!!
So are they now going to change the name from TelexFree to TelexIncarcerated?
Another interesting thing is how the court will deal with Joe’s “My Financial Advantage” (MFA) product and affiliate membership sales made through the TelexFree website.
As far as I can tell MFA is a legitimate service with a pretty clean affiliate comp plan but the issue becomes money flowed from TelexFree members into MFA (I believe through the TelexFree website).
An argument can be made those were legitimate transactions (and I’m sure it will be made) but we all know where that money came from. Be interesting to see how that plays out.
How about … “Telexacon”.
Where did they hide them money? Does anyone really believe that top cons didn’t put money away for a rainy day (more like a storm now)?
Well, I’ll wait and see what develops re. recovering of funds. I know that God will help me in recovering my money from TelexFree….
I won’t get a good night’s sleep until that asshole Wanzeler is caught and goes to jail. I can’t imagine the US authorities letting that scumbag go free with all his millions.
This list is huge, San Rodrigues, Julio Silva, Marcio Pinheiro, just to name a few… If the authorities really want to stop this type of scams, they should use telexfree gang leaders as an example since this was such a big scam.
It’s getting ugly in Uganda. Local cops caught a TelexFree promoter in hiding and paraded him on TV.
Ponzi schemes can quickly turn a perceived “success” into a miserable failure. At least the promoters in Uganda seem to have realized the situation.
I agree with you 100% I these guys have been scamming the community for years and always getting away with it!
Due to the fact that the Brazilian community are too afraid to go to the cops! First with mortgages now with Telexfree. Pr. Julio has now moved to a new pyramid/pony scheme!!!
Here in Madeira things happened the other way around…TF promoters first used the local public tv station RTP Madeira (some inside help?) to atract even more suckers into the scam, after the “freeze”, none of them have been seen since…nor the local authorities have done anything to change that (why is that? hummmm…).
I thought that being a western europe region, Madeira Island, its government, authorities and people would have their personal and colective standards up there next to other european first world countries…I was wrong…
The same cons are now promoting a spinoff of TelexFree called banners viewer (based on cloud storage sales).
They even copied telexfree slogan… Marketing & Technology… Its cheerleader and San Rodrigues friend is already promoting it to whatever is left of his TF downlines.
Bruno…bro, Madeira is akin to Shetland islands on north of Scotland. Isolated and inbread!…ok, ok a bit of a joke^^:).
Madeira is almost a Mafia island…a mini Scicily. With a very peculiar and particular psychology that affects all native born there according to their education and principles. A shame…it could be quite a utopian location. Telexfree new name: “Telexanal”!
It appears that Wanzeler’s wife was arrested today while trying to flea the country:
Partners in crime.
I would want to know what is likely going to be the end of all these at the end of the day….for those of us who invested in TelexFree innocently, are we likely going to have our money back….?
If yes, what do you think would be the likely process of getting our money back since we area all from different countries….? Can someone please find an answer to these questions….?
You may get something back in a couple of years. You will need to file a proof of claim form which is not available yet.
You can look at the Zeek Rewards case, a $850 million Ponzi scheme shut down in August 2012.
* Voluntarily shut down.
* Placed into Receivership (administration)
* Claims process from May 2013 to September 2013.
* First round of payouts is “just around the corner”.
* Clawbacks from net winners are going on right now.
Information from the Receiver:
I don’t expect you to read all that, but if you know where to find information and what to find there then explanations will be much easier to write.
It’s too early to predict anything for TelexFree, we can’t give any meaningful answers. It has currently status as a Chapter 11 bankruptcy / reorganizing case, but that will probably be changed after the May 27 court hearing.
I can predict that the TelexFree case will be more messy. People had multiple accounts, used fake names, paid directly to sponsors rather than to TelexFree, received payouts directly from people they recruited, and so on and so forth.
Make sure you’re able to identify your account (username etc. for all accounts you had). Make sure you’re able to identify your investment (only money IN and OUT, you don’t need to count any back office payouts).
Don’t READ too much of the Zeek Rewards information. The idea was to show you some TYPES of sources for information. A quick look at it should be more than enough.
You will find similar info for TelexFree when it becomes available. Currently the information isn’t available, it’s too early in the process.
Don’t forget to tell him to visit Secretary Galvan’s Commonwealth of Massachusetts website to file a Bankruptcy Proof of Claim with the United States Securities and Exchange Commission.
Its not too early for that is it?
I didn’t want to repeat your misinterpretations. 🙂
I may link to the examples I posted, or I may produce some new ones. They showed how to separate between real monetary transactions and back office funds. Any misinterpretations will most likely be repeated then. 🙂