Following TelexFree corporate’s attempts at shovelling a mountain of misinformation onto their US affiliates last Saturday, I thought we might begin to see some sort of coherency between what was pushed onto affiliates and what was actually happening in Brazil.

Following the release of a TelexFree US affiliate conference call held last Sunday though, that seems to be far from the case.

The call featured in this article was hosted by TelexFree US affiliate Randy Crosby and uploaded by Faith Sloan. Both are in the “TelexFree Global Team”, with Sloan declaring on her personal blog that ‘TelexFree is going to be my deal of 2013‘ back in February.

The major focal point of the call appears to be a purported signing of a contract between TelexFree and an unnamed insurance company. For reasons unknown, apparently acknowledging the signing of the contract is ok, but nobody is permitted to publish anything about it:

Any information out there that’s posted guys or read on the actual website for the company it needs to be taken down immediately.

Basically the insurance contract, everything has been done and signed but we are not allowed to post that anywhere on the internet.

[00:36] The company’s very serious about that. they will come and there will be actions. So guys again, if you’ve got information up about insurance posted somewhere, that is information that is delicate they don’t want people posting that everywhere for obvious reasons. (Ozedit: no they’re not so obvious actually…)

But rest assured they do have a signed contract with the insurance company. Infact I believe there’s a couple now.

[19:15] They have the insurance company that is, that uh… Santiago just talked about, but it’s critical that people aren’t posting anything about TelexFree and the name of any of the insurance companies that they are going to use.

So if you’ve got posting out there, this is coming from corporate, uh guys you have to take those postings down.

TelexFree is the only company that is allowed to post anything about their relationships with with other companies. And right now, at the juncture as you guys are reading over here, you have to immediately cease such practices.

People cannot call the insurance company. Believe it or not we had people calling the insurance company asking about their stock, and asking about binaries, and asking about how many people they should put on their left and right team.

Guys, it cannot happen.

[20:28] This is a warning. Anyone that sees individuals out there with postings on websites, the company is asking you to report it. If they’re posting anything about insurance and TelexFree, as far as showing the name of a company or that nature, if someone is out there guys we want you to report it – because they’re very serious about that.

So therefore if you know someone, let ’em know “hey, you gotta take that down immediately”.

And again guys, this is coming right from their legal department with TelexFree. So very, very important that you guys understand that.

One possible reason for Crosby’s repeated stern warning to US TelexFree affiliates is that, contrary to Crosby claiming a contract has been signed and TelexFree’s Director of Marketing appearing on YouTube supposedly branding about a singed contract , it was revealed yesterday that no such contract was ever signed.

That of course didn’t stop TelexFree affiliates from misleading their US counterparts though, with Julio Silva, featured on the call because he ‘from Brazil and speaks English very well‘, using the fake contract as a PR anchor:

[12:48] As everybody knows, when you come into a networking marketing (company) you have to buy a umm, introduction kit – correct?

We have our introduction kit, when you came to TelexFree and you paid $299 dollars… the company give you ten softwares, ten packets – that is your introduction kit.

[13:21] So now, for the first time in network marketing, the money that you pay when you sign with a company is gunna be guaranteed… insured

[14:20] Nothing is gunna happen with Telex, but just incase something happens your money is gunna be secured. The company find an insurance company and they are going to secure our money. This is incredible.

Incredible? I’ll say. Takes some real balls to get on a call and make promises like that based on events that never took place.

Whether Silva and Crosby knew the allegedly signed insurance contract was fake at the time or whether they were simply led down the garden path by TelexFree corporate’s videos is unclear.

As you can see though, that didn’t stop them using it as a major selling point in TelexFree’s defense.

Crosby even pulled the old “why would a reputable business get involved with us if we weren’t legit” later on in the call:

[26:25] The company, even by having and offering the insurance which is going to start for the people in Brazil and then spread out and be offered to people all over the place, guys you think about it. Would a major insurance company, which has never done this before, even offer to insure people’s purchases by paying an extra percentage?

Would they insure if they thought not only was this company not gunna be around but they wouldn’t touch it guys if they didn’t think they could make some money out of it.

And that’s exactly the reason why they’re here. That’s exactly the reason they signed the contract with TelexFree.

Signed insurance contracts that didn’t exist weren’t the only odd claims made on the call, with Julio Silver and fellow affiliate Santiago De La Rosa making some pretty big claims:

De La Rosa – [1:36] We’re happy because everything is fantastic with our company. We right now have the great explosion in our company. And every single day we are more strong.

Every day we are more strong and we have hundreds, thousands of people join to our organisation. That means that we have hundreds and thousands of people every single day that we, all of us, have the opportunity to change their lives. You know? And this is fantastic.

This is fantastic what all of us have right now with TelexFree.

Silva – [4:07] “Ultra, super, mega excited about everything that’s going on with TelexFree.

[4:46] On Saturday we got an update from a magistrate who presiding (over) that case right now… is in the process of putting it down now and y’know, getting TelexFree cleared.

Because they ruled, one of the judges in Brazil has ordered TelexFree to y’know cease- ah y’know, oh, oh, hold onto their business. Not allowing TelexFree to ah pay anyone, not
allowing anyone to sign up. It’s causing huge damages to TelexFree.

Funny that. Yesterday Samoel Evangelista, the judge appointed to hearing the appeal, rejected it. And in doing so, inadvertently re-enforced the words of Judge Thais Kalil, who when granting the original injunction against TelexFree wrote

The issue is that the earnings will be exhausted when the main source of revenue of the group (new affiliate registrations) stops.

Many (affiliates) do not even have the opportunity to recover their initial investment (minimum U.S. $ 339) and this is detrimental.

And despite Public Prosecutors in Acre having had their evidence and case scrutinised and approved by two judges now, Julio Silva had a different take on legal matters:

[5:18] The basis for this charge in brazil is nonsense. It’s pointless, she (the prosecutor) has no facts, she has no proof of what she’s saying about TelexFree. And the information she has on her case is just terribly… she’s just misinformed.

In that case now, so the magistrate they’re putting that order on Saturday but today is actually like a holiday in the state over there in Acre. So I believe either tomorrow or the next day that should be clear out of TelexFree’s website and uh be cleared with the whole thing.

[5:53] So the attorneys for TelexFree, they can ah y’know just continue with the case and on educating them. You know the whole issue is, the people there, it’s just educating them on our system.

[6:25] This is nothing, it’s just going to make TelexFree stronger than ever, more powerful than ever. Because once this is defeated this again validates how powerful and how great of a company we have.

[6:40] Where TelexFree is located in the state of Espírito Santo in Brazil, it’s defeated.

The judge said “no, Telexfree’s a great company. Telexfree does… it’s pointless, it’s not nonsense like some people are claiming TelexFree to be. So it has defeated other eleven cases and this is just number 12 guys.

[7:06] All on Saturday was great news that this magistrate who is above this judge over there is clearing this case so they can investigate or conclude and continue to learn more about TelexFree with TelexFree’s attorneys. 

[7:20] Just so everyone knows we have the top-notch law firm in Brazil who is um our attorneys over there.

Obviously they are extremely strong, extremely powerful, extremely knowledgeable and in just the next few days we’re going to have information that this is all done and TelexFree is stronger than ever.

Eleven cases you say? Well that’s the first I’m hearing about them. No further information is provided so one can only wonder what the eleven cases Silva mentions were about.

Given they were obviously stretching things based on what was publicly known at the time (alright, so the magistrate stuff seems to be out-and-out fabrications based on what did happen), one could almost forgive those on the call for doing their best to spin the PR machine.

That is until of course they attempt to completely and utterly discredit critics of TelexFree for… wait for it,

…”being wrong”.

Crosby – [9:26] I know on the internet some people, I went and saw articles… y’know the same articles when we were challenged before in Brazil and people were saying different things, and they get to find out after we won all of those cases that the people who were saying the negative things were wrong. So therefore it kinda sets a precedence for what’s going on.

Each judge, they’re not finding anything wrong with TelexFree and that’s wonderful. And that’s the power of the whole opportunity.

De La Rosa – [9:57] We have to be very smart about the information we find on the internet, because most of, 95%-99% of what is mentioned is from bloggers.

That they sit on a computer everyday criticising people but they’re not doing anything for their lives. You understand?

So it’s very easy for anybody to sit behind a computer and criticise and post improper information and then just throw it out on the web, you know what I mean? So and, uh, uh that’s what happens.

Echoing TelexFree President Carlos Wanzeler’s explanation to US affiliates that ‘everything you hear from news, it’s not true‘, made just days earlier, those on this latest call explained to listeners that

[10:33] Even news websites in Brazil or anywhere out there, sometimes the information it’s not true or factual or to the point. You know what I mean?

So we have to stick to what the company’s saying. To what the attorney’s of the company are saying. And to what the updates we get from our company, not from these people who are outside, just critics.

“Other (MLM) companies” weren’t spared either and were also dragged into the list of excuses being trotted out:

Crosby – [22:01] What’s happening is, some people because of either due to excitement or perhaps listening to negative people who don’t want to see you earn the kind of income that’s being made here, people are saying, well sometimes they say crazy things that make no sense.

Just like they said three months ago, they were wrong then. They said the same thing four months ago, they were wrong then. And some of the people are saying the same thing I heard a month ago, they were wrong then as well.

Bottom line is, guys you have to understand, there are a lot of companies out there that do not, they do not want to see… they feel threatened by TelexFree because of the success that they’re having. Everybody in this company, because they’re posting ads and selling packages back to the company and everybody’s getting paid.

And when you have a company like that it threatens alot of the other companies, it threatens the people in those companies and so you have people saying all kinds of things.

One would hope that the injunction appeal rejection on Monday will provide a much-needed dose of sobering reality for TelexFree affiliates outside of Brazil. Or alternatively perhaps the disconnect between reality and what the company and Portuguese speaking affiliates feed US-based affiliates will continue to increase even further.

Stay tuned…