Sunday, April 20, 2014

Scam Absurdities: Why is TelexFree insulting law enforcement?

FBI and HSI agents collect evidence from TelexFree office after the raid
Photo by MetroWest Daily News, see original article at
Most suspects, when caught by law enforcement, would have the common sense to shut their mouths and let their lawyer do the talking, and their lawyer would not do any thing to insult law enforcement, calling them mistaken, unless they actually have proof, and only if they want to try this in the court of public opinion.

Given that TelexFree, which was already frozen in Brazil 8 months ago, and is under investigation all over the world, and was recently raided by no less than FBI, HSI, ICE, SEC, state police, deputy sheriffs, and who knows what else, you'd think they'd just shut the **** up. But no, they had to send out a press release that basically said the law enforcement are "mistaken and misleading" regarding the incident where they caught Joe Craft trying to take a bag containing a laptop and 36 million in cashier's checks out of the premise WHILE law enforcement are conducting a warrant search.

First, the report, as given to a judge:

Complaint given to judge, courtesy of
see original at  DOC10.pdf
The facts are pretty clear:

FACT: Joe Craft lied (he's CFO and he said he's a "consultant")
FACT: Joe Craft tried to take assets worth almost 38 million USD out of office being searched
FACT: Joe Craft failed and all the cashier's checks are kept by HSI as evidence.
FACT: Checks are made out to TelexFree LLC, Katia B. Wanzeler, TelexFree Dominicana (but can also be deposited into accounts of Carlos Wanzeler and James Merrill as they are the purchasers).

But guess what TelexFree chose to interpret the event as?

QUOTE: "The reports that Mr. Craft attempted to abscond with a laptop and cashier’s checks are false."

So what sort of convoluted logic did they use to justify their reality distortion? That's in their press release.

Frankly, I don't feel like linking to that crap, you can find it yourself... I'll give you the title:

The gist of it, and I quote (with a new section numbered by me):

The cashier’s checks were in Mr. Craft’s possession because the Company’s bank accounts had been closed (1), which necessitated the Company obtaining the funds in the form of cashier’s checks (2).
Upon the filing of the Chapter 11 cases, the Company determined to marshal all of the Company’s funds for the benefit of the Chapter 11 bankruptcy estate (3). Mr. Craft had taken possession of the cashier’s checks at the request of the Company’s counsel and advisors in order to assure that the estate funds were protected (4).
Mr. Craft was holding the checks until they could be deposited in either a newly-established Company safe deposit box or an escrow account (5) that the Company was in the process of establishing. The laptop was Mr. Craft’s personal property (6).
Let's analyze that one at a time.

1) Company's bank account had been closed

FACT: To buy a cashier's check, you can draw from a checking account, or hand over cash. Since the checks are in the MILLIONS, clearly they were drawn from a TelexFree checking account.

So they could NOT have been closed when the checks are drawn.

TelexFree is expecting people to believe that Carlos Wanzeler or James Merrill (the purchaser of those checks, you can see the copies at is walking about with briefcases containing TENS OF MILLIONS in cash, then somehow just "gave" the checks to Joe Craft, who conveniently left them in the office, and then tried to get it WHILE search warrant is being served.

You are not that dumb to believe it, are you?

2) Necessitated company obtaining the funds in form of cashier's checks.

Since we have established that the accounts were NOT closed (they need to be open to draw the funds to create the cashier's checks)  This is also bull****.

3) Company determined to marshall all of company's funds

This is total BS since the checks are made out to multiple entities, including one in the Dominican Republic!

4) Craft had taken possession of the checks to ensure the funds are protected.

Bull****, since leaving it in an account would be just as protected. You only buy a cashier's check if you want to remit the money to someone else.

5) Holding the checks until safe deposit box or escrow

Again, bull****. Checks are made out to different entities. Including Katia B. Wanzeler, Carlos's wife.

6) Laptop is Mr. Craft's personal item

Maybe, at least SOME truth in this, but you can't remove stuff while search warrant is being served, no matter how personal it is. But it's just as possible that the laptop belongs to ANYONE in the office, including Labriola, Wanzeler, or Merrill. We simply don't have any information to determine otherwise. Any way, it's moot. You cannot remove items from location being served a search warrant. PERIOD! Only law enforcement can do that!

Six different claims, only one of them is likely true.

Then it gets hilarious, as they gave Joe Craft multiple titles... both "former consulting CFO" and "interim CFO".

Frankly, Joe Craft had been CFO for MONTHS, not consulting, not interim, just CFO.  He's stated to be so in the various applications for telecom license by TelexFree. Here's their Alabama application, dated March 17th, 2014.

Excerpt from TelexFree Alabama telecom license application
Joe Craft is identified as CFO, not interim, not consulting, just CFO.
Original document available at

Joe Craft had been publicly recognized as CFO for many months prior, at various public events, and have event sent out the tax documents.

Makes you wonder what other lies are there? Given that only 3 weeks ago, TelexFree responded to Rwandan investigation by claiming "who?"  this press release basically is a pack of lies.

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