Monday, April 14, 2014

BREAKING NEWS: TelexFree Declares Bankruptcy, then was REJECTED

Bankrupt (Photo credit: LendingMemo)
Yes, you heard right: TelexFree (US) tried to declare Chapter 11 bankruptcy and reorganization.

Then was rejected for filing an incomplete application.

On Sunday, 13-APR-2014, Press Release started appearing all of the US through PRNewsWire, which linked to this document :

Appears to be official, and contains a list of creditors owned money to.

According to some comments, (unverified) the top creditors to the bankrupt TelexFree are Carlos Costa's wife and nephew (1.34 mil and 0.96 mil USD respectively). Carlos Costas is head of TelexFree in Brazil.

Document only lists the top 30 creditors, there are obviously much much more.

According to BehindMLM, the filing was rejected due to incomplete application, such as lack of listing of current assets and planned reorganization schedule.

It is also interesting that the Press Release (through PRNewsWire) "TelexFree Files Voluntary Chapter 11 Petition" was issued BEFORE the bankruptcy filing was formally accepted by the court.

Given that the SEC appears to be well aware of TelexFree and is mentioned in the same breath as WCM777, a Ponzi scheme already frozen by SEC, this appears to be an attempt to prevent affiliates from getting their money out

What's interesting is only a few months ago, TelexFree Brazilian promoters urging people to bypass TelexFree Brazil (already frozen by Brazilian authorities in 2013) and pay TelexFree (US) directly for HYIP-like returns using "AdCentral", with "income guaranteed".

Wondering if that "AdAssure Lite" that was pushed by Steven Labriola, CMO of TelexFree (US) will pay up, hmmm?

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  1. Telexfree is operating now as “Wings Network”. Doing the same thing, same pyramid, same owner. Just changed the name.

    1. Pretty sure Wing Network was derived from BBOM, yet another Brazilian ponzi scheme...