According to updates obtained by ASDUpdates.com through the court PACER system, and spotted by behindmlm.com, criminal charges have been filed against James Merrill and Carlos Wanzeler for "conspiracy to commit wire fraud", the same charges that brought down Andy "Ad Surf Daily" Bowdoin.
It is believed that Wanzeler had left the US earlier for Brazil. According to Boston.com, James Merrill has already been taken into custody. See below the additional links.
UPDATE: Wanzeler is considered a fugitive from US justice. If you have information on where is Carlos Wanzeler, you are encouraged to inform the local authorities, or the American Embassy if you are not in the US.
UPDATE: James Merrill will be arraigned for bail hearing on Monday. He's being detailed for jail at a currently undisclosed location.