TelexFree US investigation confirmed (again)
Back in January of this year, Allessandra Marques of the Acre Public Prosecutor’s Office confirmed that a US regulatory investigation into TelexFree is underway. Citing the “senstive” nature of the investigation, no further information was provided.
Despite the obviousness of regulators in Brazil likely being in contact with regulators in the US (TelexFree are registered in the US state of Massachusetts), on January 15th Steve Labriola, TelexFree’s International Marketing Director, declared that ‘there is no investigation started or presented to TelexFree in any shape or form.‘
Labriola went on to dismiss Marques claims, because he and TelexFree hadn’t ‘heard of anything‘.
As watertight as Labriola’s reasoning was, now it has been confirmed again that at least one US state is investigating TelexFree in the US.
Speaking on behalf of the office of Massachusetts Commonwealth Secretary William Galvin, Brian McNiff has confirmed to Patrick Pretty that
There is an investigation going on, but I can’t comment beyond that.
Patrick Pretty is also reporting that
Galvin’s office had issued subpoenas for certain people to appear before the Massachusetts Securities Division on March 5 at 10 a.m. and 2 p.m.
A federal agency also has interviewed a person who may have knowledge about TelexFree, the source said.
Who has been subpoenaed remains unclear, however it’s expected those served would include Carlos Wanzeler and James Merril, owners of TelexFree who fled to the US after Brazilian authorities shut down the company. I imagine Labriola will also be present, however whether or not he knows anything is going on remains unclear.
In dismissing Alessandra Marques’ claim of a US investigation last month, Labriola reassured TelexFree affiliate investors by stating ‘if there’s something going on we’ll let you know‘.
Labriola and the rest of TelexFree’s executive management are in Madrid this weekend, hoping to entice Spanish investors to pump new funds into the scheme at a TelexFree convention.
If Labriola is to be believed, one would imagine the company would release an official statement concerning the Massachusetts investigation first thing on Monday morning.
Stay tuned…
Yay!!!
I want TelexFree closed down and Costa, Wanzeler and Merril behind bars for a long time.
It’s worth pointing out, TelexFree *allegedly* has an office in Massachusetts… So if any one wants to investigate TelexFree, MA would be the state to do it first.
Wait, what the heck is “Brazilian Help, Inc”?
It is using the same TelexFree phone number, and DiskAvontade
http://documents.dps.ny.gov/public/Common/ViewDoc.aspx?DocRefId=%7B00E8B792-94BC-49EB-AB64-17B1F7DDA1AA%7D
Disk matrix scheme found with DiskAVontade… Old news, but it’s the same people…
http://disk-matriz.blogspot.com/2011/11/official-disk-matriz.html
I know a MA reporter that will be at the SEC entrance to see if she can spot Telexfree owners for a report for a local newspaper she is writing
One gets the feeling the TelexFree owners gave up going in the front door of buildings long ago
If that reporter ever gets one or more of the owners talking,
have her ask them “How’s it feel to be riding on the 2nd modern version of the Titanic as it slowly sinks with them on it, and have they learned anything from Zeek Rewards?”
@Privateye
Well, tell her to just look for the guys with the red flags all over them. If she misses them at the SEC maybe she should head on over to their offices in Marlboro. Hmmm littleroundman has a point….maybe she should park herself at the “back door”.
But hey, what do they have to hide…I would think they would love the chance to speak with a reporter to defend their fully compliant business that changes lives. : )
Anyone know what Massachusetts Securities Division could do to Telexfree on March 5?
I know some people doing this and some of them are buying more ahead of the change in compensation.
why do you want telexfree shut down, because it is taking your people away from your organization?? or perhaps you cannot join, you sound bitter. telexfree got nothing to hide, and i live in massachusetts and have seen the office.
when you are well aware and educated about telexfree like i am, all the bs that people like you post around the web, has no effect. I am so glad to be part of this amazing opportunity, and we are doing just fine. Keep on hating, or loving….
@maria
I’m sure if Merril and Wanzeler state the above they’ll be fine on the 5th. Hell the AG will probably issue them an award for “outstandance” on the spot.
After all, it’s not TelexFree’s problem they’re a Ponzi scheme – it’s just that the rest of the world doesn’t get it. Poor us.
@timbers
We don’t know why they’ve been summoned. And before any TelexFree affiliates chime in with “this is great news, regulators investigating companies is normal”, it obviously isn’t. Same shit was spouted when Zeek Rewards was going under.
Worst case scenario – they shut them down on the spot (via injunction).
Middle-ground – nothing happens on the day, cease and desist is issued at a later date
Best case scenario – AG thanks them for their time, they resume their investigation and then either refer the case up to the federal division of the SEC or issue their own cease and desist at a later date.
If the execs have been subpoenaed to clarify the business model, Costa (if he appears) will clatter on about how not even god can take the business away from him, and Merril and Wanzeler will likely crap on about their lawyers and new compensation plan – mistakenly believing that absolves them of two years of running a Ponzi scheme.
First step though is getting them to admit they’ve been summoned. Labriola said he’d let everyone know if anything came up… and this definitely seems like “anything”.
@maria
Uh, Maria, I think you’ve got it backwards! When you are as educated about TelexFree International as we are in terms of how it is structured, how it works, how the incomes are really earned, and what is being said in the promotion of the opportunity, and when you are as educated as we are about securities laws, business opportunity statutes, SEC and FTC rules and guidelines, pyramiding statutes, and previous case studies of companies with a similar concept to TelexFree International which were shut down for being illegal pyramid schemes, then you would know why TelexFree International is an illegal pyramid scheme.
And all the hype, misinformation, and bs from uninformed, misinformed people online wouldn’t fool you, like it doesn’t fool us.
By the way, I’m sure the Judge in the case in Brazil would love to hear your proclamation that TelexFree has nothing to hide! He just fined them recently a second time for their delay tactics and for not turning over certain documents the Court had requested! Well, so much for your nothing to hide opinion! The U.S. authorities won’t be so patient when they try that tactic here!
Why do a number of people want it shut down? Oh, I dont know.. maybe because it’s an illegal pyramid scheme? Maybe because it is taking advantage of uninformed, misinformed, gullible people like yourself, who obviously can’t protect themselves, so they need others to do it for them? Maybe because of the harm that’s done to people once the scheme collapses? (Bernie Madoff case ring a bell to you?) Maybe because there are millions of people with no brains and common sense to avoid such schemes? Take your pick!
Personally, I’d vote for all of the above!
Finally, the only person who is going to end up bitter is you when TelexFree International is shut down, and you end up losing half or more of what you put in, and then have to wait a year or two or longer to get it!
As far as loving or hating, I prefer to just keep it real… and factual! Just because you don’t like the facts doesn’t mean it’s hate!
Are we missing something here?
We have pointed out the AdCentral “contracts” to be the main problem, to be a Ponzi/pyramid hybrid. Even TelexFree’s attorney Gerald Nehra didn’t feel very comfortable discussing that part (he failed to follow up his own Cease and Desist letter).
Disabled link:
behindmlm.com/companies/gerry-nehra-fails-basic-telexfree-due-diligence/
We have pointed out some secondary issues, e.g. potential tax evasion and money laundering.
What type of “education” do we actually need? Do we need to repeat some “daily instructions to the subconscious mind”, e.g. “Don’t mention investment! Don’t mention investment!”?
Galvin, the Secretary of the Commonwealth of Massachusetts, appears to be nobody that Costa or TelexFree International should fool with-apparently he was involved with getting WCM777 shut down for being an illegal pyramid scheme!
http://www.sec.state.ma.us/sct/current/sctworldcapital/world-capital-markets-consent-order.pdf
If I had to bet money, and I wish I could, I would bet that he hits TelexFree International on a number of the same charges that WCM777 was hit with..
You nailed it men! That’s exactly why I want them to be shut down.
Some of my close friends have been deceived by their tactics… Some of them are even trying to get loans to invest in TelexFree!! I’ve tried to explain them the truth, but they need the money so much that they don’t hear my advice. I want them to be shut down before my friends gets in trouble.
I only wish that Mr. Galvin halt their operations immediately. If he do, the pyramid will collapse in a few weeks, proving what they really are: an illegal pyramid scheme.
Galvin will also not be happy that San Rodrigues (who was already shut down in Mass for running a ponzie scheme ) is now a top winner in a Ponzie scheme based in Mass. called Telexfree.
Question for the Portuguese population that seems to be a target of these schemes time and time again. Aren’t you tired of these thieves targeting and taking advantage of your community? Do you wonder why they do it time and time again to your people? It’s because they know they can…and they know your weakness. Fight back and don’t join. How many dreams are you going give away to these thieves?
You may not understand, but the writers and contributers on this blog are on your side. We’re all trying to protect YOU!
We aren’t against anyone making money. Come on..does that make sense? We’re against thieves taking advantage of people. Why do telex fans come to this blog and argue and defend?
If they love their investment and are living large then why waste time here arguing with the little slugs like us?. Well, they know the down line people come here to dip their toes in reality because they’re confused and somthing inside them is saying this just doesn’t make sense to me. So if you actually made it to this blog it means your uneasy…and it means your a “thinker”.
We jump ugly on people that come here with their chest’s puffed up tellin us how we hate their success..we be draggin the middle class man down…what ever… This blog is written and commented on by people who care. Take it for what it’s worth. And we’ll be here to listen when the shit hits the fan.
Money can be as intoxicating as a drug. Time for Telex Top Dogs to go into re-hab
so many bad comments, I think you r all instigators. I am happy Telexfree came to me, cause it actually has made a difference to me and my family. I became ill and not able to worked till Telexfree offered me this great opportunity.
I joined in December 21th and I had posted my ads every single day except for 1 time. I get pay every wk , and a day you dont work is a wk you dont get pay. I cant afford that to happened again. I also used Telexfree products.
All of the cell phones have long distance service, thx to telexfree and we also use the program as Skype in the computer and for all that I get pay. Thanks Telexfree for all the goods things you have brought to us.
People: quick do withdraw your money, Telexfree maybe be shut down in a matter of days and the money will be frozen!!!
Corre sacar o dinheiro gente a Telexfree vai ser fechada pelo SEC por estes dias o dinheiro sera bloqueado!!!
So many blind comments. I think you are ostrich who bury head in sand and insist everything is fine.
Why do you think that?
You have been reading an article about “TelexFree investigation in the U.S. confirmed (again)”, and most of the comments seems to be about that topic.
The article has mostly attracted comments in favor of an investigation (or a shutdown). That sounds rather normal, doesn’t it?
Troy Dooly has a more positive video on his website (mlmhelpdesk.com). You will find a link to his website in the menus on the right side (the menus start from the top of this website, and the link to MlmHelpdesk is at the bottom of the menus).
The video you can find there (currently on the front page) is probably exactly what you’re looking for. We have a copy of the video here, but it received some negative comments, so I won’t recommend it to you.
Hi guy’s
It took Brasil investigation about six months for them to finally Shotdown telexfree, do do you think were going to see the same case here in the us? Thankx a million.
Now those Brazilian scammers are going to behind bars for a long, long time… don’t mess with USA fuckers!!!
chain for these swindlers.
@Oz, Change, Norway, or others…
can you walk through how the VOIP situation works…I know that in each Ad Central pack someone purchases they get 5 VOIP “licenses” I believe that you can sell for up to $49.95 each…
Let’s say I buy one from you…I give you the $49.95…my understanding is the retail profit in this case would be $45 to you-is that correct? Do you then go in, activate my account, and give the company $5 to pay for my service the first month? Or, do you keep the entire $49.5 as you’ve in essence already paid for the 5 as part of your AdCentral package and the company just flips the switch on my VOIP account for the first month free?
Starting the second month on, as just a customer of yours, do I pay the company $49.95 directly to the company? What is your commission each month I pay for the service? (Is it the same $45 that you earned the first month?)
I think Oz or M_N can explain it better than I can, but this had to be one of Nehra’s ideas. Instead of paying the affiliates in money, affiliates are paid in products, and it can be chalked up as “sales” by the company.
This is bogus retail. And it violates Nehra’s own “intrinsic value” test, though you can always “spin” your way past that, esp. if you ignore Omnitrition, like all MLM lawyers are prepared to do.
I really really wonder if Sann Rodriguez had consulted with Nehra before shutting down his FoneClub and joined Merrill / Wanzeler / Costas to do TelexFree. Things can’t be that simple that he just “happened” to be top promoter. It makes far more sense for him to be inner cadre / hidden owner. And I wonder if DiskAvontade was the company that provided FoneClub with the phone cards. These companies are linked in ways that we can’t see but suspect.
I have watched some of the “back office training” videos from Scott Miller Telexfreetrainer, back in August 2013 (around that time).
Those videos showed me that people could create new accounts directly from their back offices, both customer accounts and promoter accounts.
People can have multiple accounts. Post #1376 in the MMG forum is showing a quote from a member having 5 accounts, “all in his own name”. The other member have 26 accounts. Disabled link (copy and paste, it’s in case you want to see an example):
moneymakergroup.com/index.php?s=&showtopic=415036&view=findpost&p=1108683846
It will probably be easier if you can SEE the back office in a video, rather than reading a complicated explanation.
In a video I have linked to one time earlier; 4:55 your binary organization (yourself and others). 6:30 pay bills and transfer.
When you sign up, your sponsor will create a new account for you under his own account (main or sub). He will normally sell you your first AdCentrals at the same time, and you will normally pay directly to him.
He will then use the balance in his back office to pay the bill.
* He gets money from you
* you get a new account from him
* TelexFree will get reduced withdrawals
You can of course pay directly to TelexFree, rather than paying directly to your sponsor.
You now have a TelexFree account with 1 or more AdCentral. You can now create your own sub accounts and buy more AdCentrals.
The new sub accounts will cost you net $5 per account. They will be organized under your main account, just like you can see in the video. You will earn $20 recruitment commission for each new AdCentral you buy through the sub account = you have become your own sponsor.
You will also earn $20 “binary pairing commission” from your downline (your own sub accounts, or people you have recruited). 1 + 1 AdCentral = $20 binary commission, for multiple levels if you have many sub accounts organized in a downline.
If you recruit people, you can normally let someone in your upline pay the bill if you don’t have enough “balance” yourself.
* You generate a new account for the new member
* Your sponsor pay the bill, using his “balance”
* The new member gives money to you
* You give the account to the new member
* You give money to your sponsor
Sorry for all the details, but they are actually needed to show some of the methods used.
Sorry, I forgot that part. 🙂
To understand the VOIP subscription, you will actually need to understand the other parts of the back office. That’s why I tried to find a video.
1st month $49.90 – $44.90 commission = $5 net price
Following months $49.90. It will generate matrix commissions in a 5×5 matrix, around 19,000 positions. Hardly anyone have mentioned anything about that part, the only one has been Carlos Costa in a video. $5 of the full price was used for commission, if I remember it correctly.
I don’t believe anyone actually are paying for month 2. The people who are interested in the VOIP service will generate a new 1st month customer, to get the service for the net price of $5.
@Norway So, does the company basically charge $5 a month per VOIP account that is either your account or that of a customer? Or does everyone, including the rep, send the company the $49.90 and the company pays out the commissions and bonuses, with $5 going into the pay plan?
I wonder if Carlos Costa’s next video will address the US investigation.
I guess it won’t because it is now named “Plantão Ympactus” (Ympactus breaking news) instead of “Plantão Telexfree”, indicating that Ympactus severed its ties with Telexfree international.
%49.90 is sent directly to TelexFree. The %44.90 commission or 5×5 matrix commission will be paid out through the compensation plan.
Note that I didn’t use any $-sign, I replaced it with %. Most of those transactions will be about internal balances.
“Balances” are any type of transactions to/from the back office, any type of transaction where there’s no real money involved. It doesn’t matter what the payments are called, or whether or not they’re presented with a currency sign.
A normal MLM company should not have the need for transactions to/from a back office. A back office isn’t a bank account, and a company like that isn’t a bank.
A back office can provide ACCESS to an e-Wallet operated by a third party payment processor. An e-Wallet can be INTEGRATED into a back office, as long as it clearly is operated by a third party.
If the e-Wallet is a PART OF the MLM software and is operated by the company itself, it’s most likely a fraudulent business.
Internal transactions to and from a back office will not be about real money. Monetary transactions will require money to be deposited in a bank account, or moved between different bank accounts.
Internal transactions to/from a back office are used to trick people to believe they receive real monetary payouts. The brain doesn’t know the difference between different “numbers on a screen”, it will assume what it is based on previous experience and knowledge, e.g. on what you can do with those numbers.
The brain will assume it’s handling real money if the “numbers on a screen” can be USED like real money, and if it LOOKS like real money. It doesn’t need to be exactly like real money.
TelexFree’s internal transactions are ILLUSIONS of real money. That’s one of the main signatures for most online Ponzi schemes.
Zeek Rewards had real money coming in from the outside, when new investors joined and made their first investments.
After that, the system was solely about ILLUSIONS.
* sample bids, $1 per bid
* VIP Points, used to compound the investment
* RPP Reward Profit Points, used for daily profit share
* “Cash Available”, for reinvestments and withdrawals
When people reinvested the “Cash Available” 100% and bought more sample bids, the software could simply adjust some internal balances.
When people started to follow an “80:20 plan” (80% reinvestment, 20% withdrawal), the company would need to use money coming in from new investors to pay out the 20%. The 80% reinvestment didn’t require any monetary transactions.
A Ponzi scheme can continue as long as the investors don’t withdraw too much money.
@Norway-So, does the company basically charge $5 a month per VOIP account that is either a rep’s account or that of a customer and pull it from the rep’s back office for payment?
Or does everyone, including the rep, send the company the $49.90 and the company pays out the commissions and bonuses, with $5 going into the pay plan?
Correct, except for the dollar sign. The back office isn’t a bank account, and the transaction isn’t a monetary transaction in most cases.
Internal transactions is about an ILLUSION of money, similar to monopoly money. Monopoly money has a function inside the game, but you can’t buy a cup of coffee or use them to pay any bills in the real world.
Promoters will get ALL their payouts in monopoly money. The monopoly money can be used inside TelexFree’s own system, e.g. to pay for the VOIP subscription or buy more AdCentrals, or be transferred to other members.
If anyone want to withdraw money, TelexFree will support the illusion by paying out real money.
Very few people will bring in real money to pay for the VOIP subscription, but there may be SOME exceptions.
@Norway-I was under the impression that if you were a rep, starting the second month on, you didn’t send the $49.90-you either paid the company $5 for your VOIP account, or had them pull it from your back office…
Ken
Oops. Correction:
Month 1: 44.90 to the sponsor, 5 to the company
Month 2: 44.90 to the company, 5 to the pay plan
You may have some autopay function, but I have only seen the manual method.
When affiliates are talking about the VOIP subscription, it’s generally about how cheap the service is = “only $5 per month”. But those affiliates will normally generate a new first month account, pay 49.90 and get 44.90 commission.
TelexFree doesn’t try to make any money on the VOIP subscription, so it isn’t really important if people are paying only $5.
The gross revenue will be much higher when the net price is $5. Customer to affiliate ratio will be much better.
Ponzi schemes are about ILLUSIONS, so normal business logic will fail. It’s about creating the ILLUSION of being a profitable and legitimate business, so it won’t be shut down by authorities.
High activity from multiple people generating $49.90 gross revenue per fake customer is better than low activity from a few people generating a higher net revenue, but a tiny gross revenue.
The VOIP service is simply a DEFENSE SYSTEM. When regulators are trying to look into it, it can show a substantial revenue from the sale of the VOIP service, and a very positive customer to affiliate ratio.
The defense system will fail if anyone starts to analyse the details, but it can potentially pass an initial investigation.
And now Steve Labriola will take a moment to let us all know that an official investigation into Telexfree has begun.
Steve? Steeeve? …….Steve?
It doesn’t appear Telexfree is hiding any news reports on this or the unpopularity of the new compensation plan. They even link this site and its report on Massachusetts investigation.
Might this indicate the big players have made enough money on this to be content to let Massachusetts shut it down?
Here is there link with news from this site and other subjects:
encontreinarede.com
For a company to be legit, it needs to make at least 70% of its revenue from the sale of its products and services. In the case of TelexFree, the money that people make come mostly from “bonuses” earned by getting people signed up under you. It’s right there in black and white.
I have heard of people making $2,000 a day, from TelexFree! How in the world is that legit when you make that much money by just “sending emails out promoting the company”. It just doesn’t make any sense. People are so gullible…but in the end…I guess it comes down to greediness.
Telexfree works and works well. Have any of you tested the product? It is EXTREMELY competitive specially for people that needs to call outside US.
I use the product 99TELEXFREE everyday. So I wonder, does a “ponzi” have products really? No.
Nobody is complaining about Telexfree from those that uses it or is an associate. So why you all want the company closed? Has any of you lost anything? Obviously not because Telexfree works and pays very well for commission and your honest marketing work. I for one SELL its 99TELEXFREE VOIP product.
Another point, this site is all about “new” and “gossip”, it is never showing the real thing, just talk. I bet this comment will be removed.
Concerning the Brasilian case, I AM VERY WELL VERSED with the laws and the whole case there, and I can assure you, if there is something wrong in this case it is with the Brasilian government and its judiciary system. Everything there is going absolutely against its own law.
One more point, come in to Telexfree. You will be very happy and earn good income. If you sell more, you gain more.
@Fausto
The product has nothing to do with getting paid in TelexFree. You invest $289 and get paid a $20 a week ROI.
This is supposed to change somewhat on the 9th but that’s currently the business model and has been for 2 years.
Of course they do. Every online Ponzi has hidden behind some sort of product or service over the past decade.
And they won’t, until the money runs out. And then you’ll be pretending you “had no idea”.
Yeah, clearly.
@Fausto:
You’ve got so many inaccuracies and false statements in your remarks I’m surprised you don’t need a GPS unit to find your way home!
First, at $49.90 a month for VOIP, you are delusional if you think that is price competitive! SKype and others can be had for $15 a month or less!
Second, you are erroneous in your assumption that just because a company has a product, therefore it can’t be a pyramid scheme! I can give you a number of companies that had either products and/or concepts virtually identical to TelexFree Internationalm and that have been shut down for being illegal pyramid schemes in just the past couple of years! FHTM ring a bell? No? How about Ad Surf Daily? Are we getting warm? How about JSS Tripler? No? Maybe Zeek Rewards? Your lack of knowledge in this regard is breathtaking!
Furthermore, I can give you around 9 different ways that even a company with a product can be hammered for being an illegal pyramid scheme. I’ll give you one, in fact, that’s a perfect example of where a company can even have a legitimate product and still be shut down! Reps using words like “guaranteed income!,” “make money guaranteed!” “Make money without having to sell anything or recruit anyone!” and/or using words like “invest,” mentioning ROI or returns, “investment,” etc…
Using one, some, or all of the above now automatically classifies whatever you are selling to be a “security” in the eyes of regulators like the SEC, regardless of what you are selling! You could be selling a bar of soap, but using the above words and statements now automatically means your bar of soap is a “security,” which you have to be registered and licensed to do, and when the regulators come knocking and you can’t provide a securities license, you are now automatically shut down and considered to be an illegal pyramid scheme!
This is exactly how Galvin, the man in charge of the case in Massachusetts was able to shut down WCM 777, and how the feds got Zeek Rewards!
Please, take a seat and stop commenting! You have no clue what you’re talking about and it’s getting tiresome trying to educate people like you! If brains were dynamite, you wouldn’t have enough to blow your own nose!
Regarding your statement about nobody complaining, when you’re being drip fed $20 at a time, and under the illusion you are going to triple your money, of course you are not going to complain! People didn’t complain in the Bernie Madoff case for about 25 years, and then woke up one morning to find out they’d lost everything!
Furthermore, lack of complaints is not a legal standard! In fact, in many cases, people don’t come forward out of embarrassment-nobody wants to admit they were fooled into spending $1500 or $15,000!
If recruiting were to stop tomorrow, the company would go belly up in less than 90 days! You didn’t even really now how people are actually getting paid!
Furthermore, nobody is actually making money the first 14 weeks-all they are doing is returning $20 a week to you from the $289 you gave them-after about 14 weeks, especially if you have not sold any VOIP, how can they afford to pay you the remaining 38 weeks? Simple! From the $289, $1500, or $15,000 packages being purchased on the part of people coming into the program after you!
Anyone with experience in telcom or the Internet knows that the profit margins on VOIP are next to nothing, as they are on travel and utilities! The company isn’t bringing in enough VOIP revenue to handle the liabilities of the weekly guaranteed commissions! Furthermore, you can’t build a large enough organization fast enought and make it strictly on VOIP-you’d starve!
Concerning the Brazilian case, as well as the American case, you are about as well versed on the law as Carlos Costa is well versed in acting! You know absolutely nothing about securities laws, let alone FTC and SEC rules and guidelines (which are similar to what can be found in a number of foreign countries), pyramiding statutes, business opportunity statutes, let alone regulatory compliance as it relates to a network marketing opportunity!
Why do you think the company is scrambling to implement a major overhaul of the existing program? Anyone with half a brain and an ounce of commense knows why! Because they knew they were operating an illegal pyramid scheme, they knew they were the likely target of an upcoming investigation, and they brought in a well known mlm attorney and a consultant to quickly make changes so as to minimize the impact of an investigation, keep the company open, and avoid going to jail! Period, end of story!
Here, do yourself a favor and read! http://www.telexfreereport.com
It has been written from a legal and regulatory compliance perspective. Any first year law school student, let alone lawyer, or someone with network marketing experience and an understand of areas mentioned in the previous paragraph could have taken a look at the TelexFree or TelexFree International business model, how it was structured, how it worked, where the money was coming from and how distributors were really earning the income, and how the reps were promoting it in the field, and upon evaluation, determined it was an illegal pyramid scheme for a number of reasons within about 5 minutes!
Note: I will be adding an addendum to the overview with material and responses of Oz’s as the company is about to announce a major overhaul that you are likely not to like!
The fact that you obviously haven’t up until now just proves what little you know, especially in regards to the law!
And before you get the bright idea that you think you want to argue, I’d advise you to read this first: http://www.businessforhome.org/2014/02/ken-steward-vemma-awarded-membership-in-the-academy-of-multi-level-marketing/
Just 2 pieces of advice: If you plan on getting into a “debate” with me, you better bring your “A game” and know what you’re talking about or I’m going to make you look like a complete fool!
Second, and this would actually be the best advice, not that I expect you to take it-I find it hilarious that people with little to no knowledge of and/ or experience in network marketing, especially in regards to regulatory compliance, want to argue with someone with over 32 years of industry experience, around half of that spent in the area of regulatory compliance associating with of the industry’s top attorneys (one a former prominent state AG and the other the lead international attorney for the one of the 10 largest MLM companies in the world, and who, together with his best friend and partner, were probably already earning million $$$ incomes while you were still pooping in your diapers! Here’s a great second piece of advice for you: “It is better to remain silent and thought a fool, than to open your mouth and remove all doubt!”
What is it with you guys who don’t know what they’re talking about, but think they do, who want to argue with REAL experts? You remind me of this idiot over on Facebook who refuses to believe that the state of Massachusetts is investigating TelexFree International! LMAO! Talk about oblivious to the facts and reality!
You apparently have the same problem. Well, not anymore! Don’t let the facts hit you in the ass on your way out the door!
@Ken Stewart
Thank you for providing the informations.
I would like to ask You about companies that are located offshore (e.g. in Belize or small islands like Seychelles), they may be shut down by SEC? I found an article about this:
https://www.eagleresearchassociates.org/myth-of-offshore-companies/
Can You please confirm this? I would be very grateful for a reply.
The good example is a Banners Broker, they are located in Seychelles and stopped paying more than a year ago (I lost here a lot of money). They still operating without problems…
Kindest Regards
Michel
U.S. regulatory agencies would have no jurisdiction outside the U.S., but that doesn’t preclude them from working with regulatory and/or law enforcement agencies in other countries either once they have taken action against a company in the U.S. or as part of an intercountry cooperative investigation.
If programs like Banner Brokers are shut down in the U.S. and various other countries, then you would think people in other countries would have enough common sense to not get involved with them!
Anyone living in another country who decides to ignore the regulatory and/or legal action taken by a U.S. agency against a company at that point qualifies for being labeled a fool!
Thank You for the reply, I am really appreciate it.
I think that the main reason for closing these companies is to offering an “unregistered securities” to people from USA. It was in case of Profitable Sunrise (a Czech based company), which was described in the following way:
“SEC described Profitable Sunrise as an international pyramid scheme that had used a “mail drop” in England while conducting an “offering fraud” targeted at U.S. citizens.”
But still, it was a company based in EU, not offshore. It seems that SEC may close every company if it is big enough and offer the “unregistered securities” to USA members.
I have joined Banners Broker a long time ago, when it was in fine condition. I dont even knew that it was a “ponzi” scheme, looked like a legitimate MLM. It is not closed in any country, admin still running this program without problems.
This is why I am asking, is the SEC may close an offshore company (based e.g. in Seychelles, Belize), retrieve funds from a top net-winners (even from those overseas) and give them back to victims like me?
Kindest Regards
Michel
Wasn’t Banners Broker recently ordered into liquidation in an Isle of Man court? Investors were able to file claims and all.
I haven’t been keeping up with it (BB isn’t MLM), but along with the court case and numerous collapses (they’re up to v4 or something now?), I’d hardly call that “without problems”.
You can’t base your investments on that idea. The article wasn’t about clawbacks / redistribution of funds to victims.
I believe you should ask Eagle Research himself (Lynndel Edgington). He’s posting here from time to time, and is also posting on realscam.com relatively frequently.
He didn’t mention anything about clawbacks in that article, or about redistribution of funds to victims.
From my point of view, a court will need to have personal jurisdiction over PERSON (owner, organizer) or COMPANY to shut a company down.
Redistribution of funds to victims is similar to a bankruptcy process. A US court will not handle a bankruptcy in Sweden, it will not have the personal jurisdiction to handle the case.
Hahahah, you are really blind mister 32 year of “expertise” in mml.
Ahhhahaha, I just can laugh of you. Not only are you blind and also piss that you did not make money with Telexfree.
Let’s see the case in court here in us to finish this and prove the opposite of your arguments. I wonder, if Telexfre wins this case and continue its business just fine, will you print this “web-site” (more like toilet contents) and eat it????
I think you will not be hungry for a long time.
Btw, can you explain how Telexfree in Brasil has the funds to pay everyone in the network? Can a ponzi do that?
Is not a ponzi by definition a scheme which is never possible to pay the bottom level if the growth stops? How can then Telexfree have the funds to pay all in Brasil’s network?
Off course you are looking things as if Telexfree only has one source of income, selling voips. You are blind really, you may understand about mml but nothing about marketing.
Btw, the product does not cost me $288+ to use, it only costs anyone outside the network $49.9 for 3 thousand minutes. NO OTHER Company has that cheap price, not even close.
Skype does not costs $15 bucks as you say to call Brasil for example, you are wrong right there if not lying.
How can Skype be bought for billions if they only sell $15 bucks? Is the company that bought it so dumb as you would conclude?
You are only looking at the eyes of someone who WANTS to believe Telexfree is a ponzi. Time will really tell and you will have to eat your crap here.
Fausto.
It’s always a good sign when a Ponzi deep-throater opens their comment with something they just made up.
Yeah, cuz that’s gunna happen.
…so how much money did you lose? The desperation must be suffocating.
They don’t. Costa has been blowing smoke up your ass for some time.
It is. They can’t.
TelexFree doesn’t have $1B in funds to pay everyone. They admit as much in their bankruptcy application.
Of course not. AdCentral investment was their “one source of income”. Any VOIP income was incidental (qualification) to the AdCentral investment scheme.
I suggest you actually go and look at Skype’s website before trying to get away with porky pies here. It’s $13 something and is unlimited calls to 60 something countries, including Brazil.
Whatever helps you sleep at night… Hear that? That’s your downline… they want to know what you did with their money.
Tick tock… the noose is only going to get tighter.