TelexFree US business plagued with “rampant fraud”
As Federal Prosecutors in Brazil contemplate whether or not they’re going to arrest and charge TelexFree’s top net winners with ‘counts of embezzlement and money laundering’, the US side of the company is now reeling from ‘rampant global credit card fraud’ and the effect it has had on their US banking channels.
On September 5th, the company sent out the following update to its affiliates:
NEWS – 05/09/2013 16:27
Due to the recent amount of fraud attempts over the last two weeks, for the next 15 days our bank has limited daily payments allowed by credit card.
On a TelexFree affiliate investor call held sometime within the last 24 hours, affiliates spent nearly forty minutes discussing how to get around TelexFree’s recent credit card problems.
The call, hosted by a man only identified as “Brandon”, begins with the brief pimping of some upcoming TelexFree affiliate events, before the credit card situation is discussed.
[3:54] For the past few weeks guys we’ve all had our challenges with people y’know, paying into (TelexFree). They’re trying to get their (credit) cards whitelisted.
And of course ladies and gentlemen I wanted to mention to everybody something that I got from Steve Labriola, so much fraud was coming into the company and yet you’ve got people waiting. People who wanna get additional contracts, waiting and can’t do it because their card’s not whitelisted or they’re getting declined.
Well yesterday the company made a very very really wise decision, and they decided to allow different ways of people paying into the system.
[4:40] Because of the fraud they had to cut down on the amount of credit cards that come through, they’re only allowing so many through per day.
Ways to get around the credit card restrictions include depositing investments into an upline’s bank account, after which the upline will then transfer their TelexFree virtual backoffice money in place of real money.
The above is described as ‘the quickest way’ new affiliate investors can get money into “the system”.
TelexFree affiliate Roy Lentz even went so far as to shatter Gerry Nehra’s carefully crafted pseudo-compliance facade, when he referred to affiliates “purchasing positions” in his post-call summary:
If you do not have to use a credit card through TelexFREE, then don’t. If you are buying additional positions, just send a cashiers check. A few days wait won’t matter too much to you.
And by doing this, it allows more new enrolments to come in and be able to use a their credit card. Allow others the chance to become a part of the TelexFREE family, and we encourage you to work with your Sponsor should you wish to buy more contracts.
The second fastest way provided for affiliate to quickly invest funds with TelexFree is via the direct deposit of money into TelexFree’s US bank account.
[5:5o] The second fastest way is going to be, with the new system, where you’re able to deposit money into the company’s account three different ways.
One, by TD bank, two by cashier’s check sent directly to the company or three by money order.
On the call the banking details for TelexFree’s TD Bank account and money orders are displayed:
Deposit inside USA information:
Account Number: 8250410334
Routing Number: 211370545
Address: 225 Cedar Hill St, suite 200
Marlborough, MA 01752
Please send Checks or Money Order to
225 Cedar Hill St, Suite 200
Marlborough, MA 01753 (sic)
PS. We only accept cashier’s checks or money order (NO CASH) to a maximum of $1425.00. Please put the invoice number in the memo.
Wire transfer Outside USA ONLY
Accounting Number: 8250410334
Routing Number: 211370545
Swift Code: NRTHUS33XXX
Address 225 Cedar Hill St, suite 200
Marlborough, MA 01752
The memo for checks and money orders is needed because TelexFree affiliates deposit blind, and are then required to inform TelexFree they have made a deposit, which the company then verifies via the provided invoice number.
Why the company is limited to accepting $1425 per check or money order is not explained.
As for TD Bank, they’re
a national banking institution in the United States (chartered and supervised by the federal Office of the Comptroller of the Currency) which offers banking, insurance, brokerage, and investment banking services in Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Vermont, Virginia, and Washington, D.C.
For reasons not apparently clear, apparently affiliates are not permitted to circulate the above banking information publicly. The following warning was sent out by TelexFree affiliate Kelly Tolar shortly after the conference call:
NO ONE IS ALLOWED TO PUT TD BANK ACCOUNT INFO on any (ANY – ANY) social media site.
Please go and remove any account numbers posted – here on facebook also.
**ALSO** NO DEPOSITS TO THE TD Bank Account ~ A new account is being created next week.
Once again, why affiliates are not permitted to circulate the information or why the TelexFree’s TD bank account accepted deposits for such a short period of time is not clarified.
One other topic of interest discussed on the call that was news to me is the promise of new products that affiliates will supposedly be able to sell to customers. These include a $49 debt consolidator and coffee.
If the products are anything like TelexFree’s VOIP service however, they’re likely to offer little more than thin masking of the company’s affiliate-funded Ponzi investment scheme.
Looking at the ongoing problems TelexFree are experiencing it’s hard not to get a sense of Zeek Rewards dejavu. Widespread rampant credit card fraud, banking issues, affiliates accepting real money for virtual TelexFree backoffice money… throw in a penny auction, some DDOS attacks, an Office of Foreign Assets Control (OFAC) debacle and you’d pretty much be looking at a carbon copy of the series of events that led up to the SEC shutting Zeek Rewards down.
Given the mounting regulatory and legal problems TelexFree are facing in Brazil, looming charges of embezzlement and money laundering and the widespread “rampant” global fraud the company is exposing US banking institutions to, one can only wonder how long it will be before the Massachusetts Attorney-General and/or the SEC will step in.
Alright so I’m just throwing this out there, so treat it as completely unconfirmed until I or someone else discovers otherwise.
In the linked conference call, at [35:32] a woman on the call refers to the host of the call as “Brandon”. Having listened to the call twice now, I’m pretty sure this is the only instance the man is referred to by name.
On my first listen through the second I heard Brandon mentioned my mind made the possible connection with AddWallet. And, as I sat there listening to Brandon talk I realised I’d heard the voice before.
Unless I’m missing something (or completely off), the Brandon on the call is none other than AddWallet’s Brandon Bradshaw.
Bradshaw bailed on AddWallet (a Zeek Rewards reload Ponzi scheme) abruptly a few weeks ago, saying at the time that he left because he didn’t want to move down to Ecuador (from where AddWallet operate believing themselves to be safe from the US government).
Shortly after abandoning AddWallet, Bradshaw appeared on a conference call advising that he’d “found a new company”. To date, the name of that company has not been made public (again, to the best of my knowledge).
My uncertainty stems from the lack of a formal introduction of Brandon on the call and me being unable to do a voice comparison of AddWallet’s Brandon Bradshaw and TelexFree’s “Brandon”.
Every publicly available TelexFree affiliate call has since either expired or been taken down. I’m confident it’s the same voice (I spent a good few hours breaking down some of AddWallet’s affiliate calls), but not 100% sure without a recording to verify against.
I searched high and low for mention of a Brandon in connection with TelexFree and, apart from one affiliate account, turned up nothing. I found this odd given that TelexFree’s Brandon was hosting important TelexFree affiliate calls.
I thought perhaps I misheard as a bunch of other names are thrown around during the call but the woman clearly says “Brandon” at [35:32] when she interrupts him.
Has Brandon Bradshaw jumped ship from AddWallet to TelexFree or is this some other Brandon with an eerily similar voice?
Internet, do your thing.
Ok, if any affiliates remain on board after the recent developments involving TelexFree, they are desperately seeking to get royally scammed by any means necessary.
That ships’ been sinking for a good while now and quite a few have jumped overboard.
Why are you saying that Telexfree is done? Are they gone?
I heard that they have been changing people life all around the world. The phone service work very well, people are calling all over the world with out any problem from home and cell.
The registered with MA:
Please could you answer my question? Or tell what I just posted here make sense to you. Thank you for your time
I’m reading a lot of non-Brazilian affiliates haven’t been paid by TelexFree since late August. Those who have been paid have been paid by their uplines from cash balances in their backoffices. This naturally includes US affiliates.
TelexFree appears to be surviving on affiliates literally paying affiliates. When backoffice funds run out who knows what will happen.
TelexFree in Brazil. You referred to TelexFree in the U.S., and that hasn’t been shut down yet. It will probably not be shut down within the first weeks or months, but it can be shut down without notice at any time.
TelexFree in Brazil has been “frozen” since June 18th, so it shouldn’t really come as a surprise to you when people talk about it. Leaders in the U.S. posted SOME news about it relatively early, but they stopped rather quickly when it lost its first appeals.
Hmmmmmm if affiliates are sending money to the telexfree mail box, who is cashing the money in?
Won’t the bank at some point question the large amounts of sudden monies being deposited?
Isn’t the depositor going to have to report the money as a personal earning to the government?
They are selling a real product which is the VOIP calling service and it works 100%, and people like it. If they are selling it and it works, and that should be a real business, isn’t it?
I think they should report the money as telexfree INC. which has been registered with C. of MA. All I know that they have been selling a real product, that people can call all over the world, and it works 100%.
Of course the big guys are going to try to bring them down, because telexfree are changing people life, and they don’t like to see people having a financial freedom. And you know how it is.
I am not a telexfree, but I know people that has been doing it and also helping people. They are doing something good for the people, and we don’t see that, the problem is, we only want to see the bad part which is no much, but the good part of it that is a lot, we don’t want to see it. That is how our brain works.
If you think wrong, you are going to believe wrong and when you believe wrong you are going to act wrong, and that is how majority of people think and act.
Telexfree promoter Faith Sloan’s blog site hasn’t updated any latest news since late July, is this a tell tale sign that the top recruiters are simply trying to get their money out before the complete collapse?
Most Ponzi schemes these days have a product attached to it, precisely so investors such as youtself can run around telling people the company is not a Ponzi scheme because of said attached product.
Affiliates invest in AdCentrals and get paid a guaranteed $20 ROI from newly invested affiliate money. Everything else is irrelevant.
Especially conspiracy theories about “the big guys”…
She’s shifted her TelexFree efforts to Facebook and is quite active. Seems to have abandoned her website for the timebeing in favour of FB groups.
I imagine once TelexFree disappears she’ll start using her blog again to market something else.
Havent the promoters and followers of these schemes seen enough to understand that these are not just harmless money games for “those in the know”. They are owned and run by criminals who will let nothing stand between them and their money.
Genuine legal business dont have this kind of problems with their banking. Wake up call for some members!
August 5th article on Ponzie Tracker headlines read:
“Appeals Court OK’s $6.7 Million Verdict Against TD Bank For Rothstein Ties” ( Ponzie scheme )
TD Bank is apparently not to discriminating in who they do business with…..a bit of a pattern here?
6.7 million is quite a slap. Wonder what doing business with Telexfree will bring for TD Bank?
Facebook page’s reader management is a little easier than a blog. Any Joe Schmoe can read a blog. FB pages can be made “private” far more easily.
What she doesn’t realize is it will take weeks / MONTHS for FB to “delete” stuff during which it can still be subpoenaed. 😉