Friday, April 18, 2014

BREAKING NEWS: TelexFree bankruptcy hearing delayed until April 21st

When Zeek Rewards ponzi was shut down there was a TON of crap info online released by people who have absolutely no idea what they are talking about, most of them fantasies like "it's just temporary", "Zeek is moving to Europe", "SEC doesn't have a case", "SEC lawyers admit in private they have no case", "Paul Burks was railroaded and his attorney is weak", and so on and so forth. People are simply in denial about reality.

And now the SAME THING is happening with TelexFree pyramid scheme (or Ponzi, depending on how you count). People in Brazil, who barely reads English, are releasing fake news or misinterpreted news, all of them 'good' news for TelexFree, of course. Items such as "they're just protecting our money", "evil government", "they are just allegations", "3 judges have signed off approving bankruptcy", "FIVE judges liked the bankruptcy plan"... and so on and so forth.

Don't believe crap info passed on by other people. GO TO THE SOURCE (remember "The Matrix"?)

The source says the proceedings have been "continued" (delayed) until April 21st, 2014.

One judge: August B. Landis.

Everybody else named on the credits are lawyers.

Bankruptcy has NOT been approved. And given the raid conducted by Massachusetts, SEC, FBI, HSI, ICE, and who knows what else, and charges filed, including temporary restraining order filed by SEC, IMHO, chances of bankruptcy being approved will be ZERO. Even if it was approved, it will be IMMEDIATELY appealed by SEC and rescinded by another judge.

So don't pass around bad info, esp. the ones you *want* to be true. You will be embarrassed when it turned out to be fake.
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Thursday, April 17, 2014

BREAKING NEWS: SEC calls TelexFree "illegal pyramid scheme", charged top promoters AND company execs with fraud

With TelexFree attempting to dodge the impending guillotine via bankruptcy, and Massachusetts decided it cannot wait any more, SEC finally filed its own lawsuit... and it's a doozy.

You can read the full lawsuit here:

Basically, what BehindMLM had warned people for YEARS, and what I've told everybody about TelexFree... that it's a fake company, and everything else is a fake... was ALL validated by the SEC.

And the following people are named in the lawsuit:

But here's the most interesting part... Apparently Joe Craft, TelexFree's Chief Financial Officer, tried to sneak out with laptop (presumed to contain critical evidence) and multiple cashier's checks worth 36 MILLION DOLLARS. He was stopped by Sheriff Deputies and items confiscated.

Here is one of them... for 10.4 MILLION dollars, purchased by Carlos Wanzeler (upper left corner) to be sent to TelexFree Dominicana, eh?

SEC evidence, as obtained through TelexFree raid,
courtesy of ASDUpdates through
There are various other checks, made out to various TelexFree entities such as TelexFree LLC, and even Katia Wanzeler, Carlos Wanzeler's wife, and Wanzeler himself.

Wednesday, April 16, 2014

BREAKING NEWS: iPayout Cuts off TelexFree eWallet, and TelexFree "office" closed in Dominican Republic

iPayout, upon warning by Massachusetts Attorney General, has apparently pulled the plug on TelexFree's eWallet, despite previously claiming that it had only few months ago checked out TelexFree and sees nothing wrong.

In other news, Dominican Republic is in an uproar when TelexFree's "local office" locked its doors. It is estimated that 150000 people may have joined.
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BREAKING NEWS: Sann Rodrigues, TelexFree "Top Promoter", says blame TelexFree lawyer Gerald Nehra

iG, news in Brazil, managed to track down Sann Rodrigues, TelexFree's "top promoter" in 2013, for an interview, since the Massachussetts complaint (that alleged TelexFree is a global 1 BILLION dollar fraud) mentioned his name.

In the interview, Sann Rodrigues basically claimed "I am a victim", then basically rolled Gerald Nehra, TelexFree's US lawyer, under the bus, by essentially blaming him for everything.

Once should recall that Sann Rodrigues is believed to have met Gerald Nehra before... when his FoneClub Universo was closed by the SEC.
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BREAKING NEWS: Holy ****! Homeland Security Raided TelexFree office!

Imagine what I woke up to this morning:

In case you can't read the jacket it says "Police: HSI"

HSI = Homeland Security Investigations... which is the investigative arm of Department of Homeland Security.

And the caption reads:

Homeland Xecurity Investigation agents raid TelexFree in Marlborough (Daily News Staff Photos / Allan Jung)

I really have no further comment than for you to read the truth.

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Tuesday, April 15, 2014

BREAKING NEWS: Rwandan TelexFree members in full panic, petition government to talk to US Embassy

According to NewTimes of Rwanda, TelexFree members there are in a panic when they learned that TelexFree (US) have declared bankruptcy. They are petitioning the government to talk to to the US Embassy Commercial liaison about recovering their money.

The problem here is TelexFree has no Rwanda presence, according to TelexFree itself. It claimed that "it [Rwanda declaring TelexFree to be a fraud] has nothing to do with us [TelexFree]"

This is a common tactic by fraudulent companies: "encourage" local member to register a company in the name of the "parent" company. If it's good, claim it's a new branch. If it's NOT good, it'd be like Mission Impossible... We will disavow any and all of your action.

Which is exactly what happened.

Now Rwandans who put in money are royally f***ed.
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BREAKING NEWS: WCM777 receiver caught participant "losing" $200000 cashiers check, and more

As MLM Skeptic have said before, the more we dig, the more strange things we find about WCM777. We found links to immigration investment (i.e. residency visa for fixed prices), links to churches and controversial entities, sound-alike entities to schools, and more.

It appears that the WCM receiver appointed by court to close this ponzi scheme has found even more, with entities like WCM Art, and Immigrant Investment

What's interesting is the "inhouse legal counsel" Vincent Messina apparently got a 5 million loan a month before the SEC freeze hit and he had already spent half of it. Messina apparently refused to return the money and the receiver had to summon help to force the proceeds into an escrow account, but there's 200000 missing. Messina claimed the check was "lost".  Judge has ordered a hearing.

Please read details at, and the update, also on

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BREAKING NEWS: TelexFree being investigated as financial fraud by Dominican Republic

Dominican News "Listin Diario" report that Dominican Republic's Securities Division has launched an investigation against TelexFree as a money laundering fraud

BREAKING NEWS: Uganda called TelexFree "unregulated and unlicensed financial scheme"

Bank of Uganda at a conference named TelexFree and some fraudulent Forex operators as "unregulated and unlicensed financial schemes" that prey upon the poor and the uneducated.
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BREAKING NEWS: Massachusetts formally charged TelexFree with being a 1 BILLION dollar fraud (UPDATED)

It's now official: US Government has acted on TelexFree, a long suspected fraud. Commonwealth (state) of Massachusetts, home of TelexFree, has charged TelexFree of being a 1.2 billion dollar fraud (90 million in Massachusetts alone), and also stated that the company is declaring a bankruptcy to PREVENT the authorities from securing victim's money.

“They clearly are responding to the fact that an investigation was underway,’’ Galvin said in an interview. “Now the thing is to act promptly and get whatever we can for these people.’’

Jordon "Ponzitracker" Maglich has covered this in Forbes:

Expect Massachusetts lawyers filing complaint with Nevada to stop the bankruptcy filing at once, and a more formal cease, desist, and account freeze put in its place instead.

Stay tuned, folks. This will get ugly FAST. Expect the Feds to jump in any second.

P.S. News has already reached Brazil

Editor's note: Updated with the correct figure, previously the newspaper quoted only 90 million.

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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.