Scam Absurdities: Birds of a Feather Flock Together, or the Rodrigues and Filho financial links

There was an old saying: Birds of a Feather, Flock Together

Basically means: like attracts like.

So how does this apply to Ponzi schemes? One needs to look no further than Sanderlay Rodrigues De Vasconcelos aka "Sann Rodrigues", and his ties to Daniel Rojo Filho.

For those of you who don't know "Sann" Rodrigues... he used to go by the title "First Millionaire TelexFree US". That's right... he's a "net winner" in the TelexFree scam in both Brazil and the US. Previously he operated a Ponzi scheme called FoneClub that was shut down by the SEC around 2006. Oh, gee, now here he is again, a top leader in ANOTHER Ponzi scheme, TelexFree, shut down by the the SEC! But it gets better. At the time Sann was in Brazil, and he simply came up with a new scheme... called iFreeX.  And within a few months Massachussetts called it suspect Ponzi, which apparently prompted Brazilian authorities to raid his recruiting seminar and invited him downtown for a long chat.  He was released but apparently under travel restrictions, roughly March 2015 or so.

MLMSkeptic was immediately reminded of the circumstances how half of the TelexFree US, Carlos Wanzeler, escaped the country... by driving into Canada ahead of the authorities with his daughter, leaving his wife behind, and from there they flew to Brazil, where they cannot be extradited against their will (as per Brazilian constitution. Wanzeler still holds Brazilian citizenship). When his wife Katia Wanzeler tried to join them she was arrested at the airport by Federal agents, minutes before she got on the plane.  She had previous told Federal agents serving a search warrant on the Wanzeler house that Carlos is staying at a hotel when it was later discovered that when she told the Federal agents Carlos and daughter was in fact heading toward the Canadian border in a car registered to her company.

But we're here to talk about Sann Rodrigues... Any way... Apparently Sann Rodrigues managed to get himself out of Brazil despite Brazilians told him to not go anywhere. So when he disappeared, Brazilian authorities put out a Interpol Red WANTED notice:

Interpol Wanted Notice for Sann Rodrigues

So when he showed up in Newark, New Jersey (yes, in the US) getting back into the US... He was promptly arrested for VISA fraud. He had apparently neglected to mention that he was arrested for Ponzi scheme back in 2008 or so... among other problems. He posted bail, had his passport (and those of his family) confiscated, only to be arrested AGAIN for the Interpol warrant. He spent another weekend in jail until Brazilians eventually responded "you can keep him for now".

Okay, so what does this have to do with Daniel Rojo Filho? And who is Daniel Rojo Filho? Pretty complex guy... and "ambassador of the Sinaloa Drug Cartel", according to a Mexican article.

Scammer Update: Sann Rodrigues (i.e. Sanderlay Rodrigues de Vasconcelos) posted bail for US crimes, rearrested for escaping from Brazil

Previously MLMSkeptic has covered the various scams pumped by noted scammer Sann Rodrigues, whose real name is Sanderlay Rodrigues de Vasconcelos. For those who haven't caught up, here's a quick summary:

• Universo FoneClub circa 2006, closed by SEC as Ponzi scheme
• Tried to restart FoneClub in Brazil, closed after a year
• TelexFree scam that was eventually shut down in 2014
• iFreeX (meeting raided by Brazilian police in Feb 2015)

Back in February 2014 MLMSkeptic did a profile on Sann Rodrigues, here's a bit of an update. 

In April 2014, TelexFree tried to declare bankruptcy, and was immediately raised by Homeland Security and Mass Department of Securities. Their CFO Joe Craft tried to leave with a laptop bag he claimed was personal property. It was searched and TENS OF MILLIONS in cashier's checks was found in the bag and the entire bag was held for evidence. SEC filed its case under seal to be opened upon raid. . 

After TelexFree went bust in April 2014, it appears that Sann Rodrigues was still traveling the world, still selling TelexFree, but is looking for another scam to promote, and he seem to be the first person EVER to promote iFreeX as of September 2014, which, based on the name, appears to be at least inspired by, if not an outright clone of TelexFree, as it claims to be a communications app to do voice and text chat, video talk, and video conference. (TelexFree was VOIP, which is voice chat)  There are many who suspect that Sann Rodrigues was the real founder of iFreeX (though the real founder had not been identified thus far). 

Within 1 month, Massachussetts, where TelexFree was based, issued a warning on iFreeX being a scam and a clone of TelexFree. Sann Rodrigues then apparently deleted all the iFreeX content from his Facebook timeline. (it is widely believed that he then started a new one somewhere that only posts in Portuguese, hidden from public view) 

In Feburary 2015, Brazilian Federal police special unit GAEP raided an iFreeX meeting headed by Sann Rodrigues. Rodrigues was invited downtown for a long chat, and apparently had his passport confiscated and told "don't leave the area". Apparently the Brazilians want to talk about his tax evasion. 

BREAKING NEWS: TelexFree investigation in Colombia

There has been little news out of Colombia after their Twitter-announced shutdown of WCM777 Ponzi that involved tweets from both the President AND the Police Chief. Now, the Superintendency of Companies in Colombia has apparently shut down TelexFree Colombia.

The Agency has published a public notice, based on the authority given in the financial emergency act of 2008 that given the government authority to investigate and close down scams in the wake of DMG and other pyramid schemes that almost destroyed the country's economy.

The public notice listed names and ID numbers of multiple individuals, with surnames of Lopez, Sierra, Moreno, and Vergel, with specific reference to "TelexFree Colombia"

A Colombian News article also pointed out that Colombia had recognized the existence of DMG-style pyramid/ponzi scheme in TelexFree.

It's also worth noting that TelxFree had been shut down in Brazil back in 2013, and is also shut down by Federal authorities in the US in 2014 after attempting to declare bankruptcy.

Thanks to PatrickPretty.com for the heads-up

News Update 07-SEP-2014: Herbalife problem in Norway; TelexFree Brazil Exposed; Zeek, TelexFree, and WCM ponzi updates

Remember folks, when you read "news", they better have a source, and it better be a reputable source (or links to a reputable source), and I do try to do that. If I don't, let me know and I'll fix it. If the sources you read don't cite sources... Well, maybe you shouldn't trust them.

I know I haven't updated this blog for a week, so here's some belated updates:

Herbalife Scandal in Norway; False Claims that former Norwegian PM joined Herbalife

Norwegian magazine Kapital broke the news that Gro Harlem Brundtland, former three-time Prime Minister of Norway and former director general of World Health Organization (WHO) was completely unaware that her name was used on the website "Herbashop Norway" where one of the replicated websites proudly claims "Welcome to Gro Harlem Brundtlands Herbashop! ... After only three months I had controlled my weight down and changed pant size from 42 to 36"

Screenshot of the said Herbashop Norway, courtesy of Kapital magazine
page has been since removed

The page had since been removed from the Herbashop website. However, there is no word on whether Brundtland will take further action against Herbalife or Herbashop, or whether Herbalife itself may take some sort of action against Herbashop, which is an independent operation based in Norway by affiliate Dan Ove Tuven. Herbalife has promised an investigation.

Norwegian news Dagbladet claims that several other Norwegian celebrities were also used in various claims regarding Herbalife products, probably without their permission.

In March 2014 Ray Liotta sued Nerium, when he found that Nerium affiliates claimed for months in late 2013 that Ray Liotta's skin condition improved due to use of Nerium products.

(First reported by BehindMLM)


Brazilian News Revealed Shell Companies Allegedly Used by TelexFree for Money Laundering

Coat of arms of Brazilian Federal Police
(Photo credit: Wikipedia)

Globo news in Brazil have published allegations from Brazilian Federal Police that they believe TelexFree has engaged in money laundering and concealment of assets through various shell corporations by using relatives of Carlos Costa, head of Ympactus, i.e. "TelexFree Brazil". At least two companies are registered to Carlos' daughter Leticia Costa: AgroFruta and Brasil Factoring, and their stocks are allegedly worth millions despite her only declaring income of 60K a year. It's also worth noting that Carlos' wife Jozelia is named as the biggest creditor in the original TelexFree US bankruptcy application.

Brazilian Federal Police suspect that money that was ordered frozen by Brazilian court back in 2013 may have been used illegally to fund these alleged shell companies in order to hide them from authorities. Many of the directors in these companies are TelexFree top promoters, said the police.

You can read the Globo report here in Portuguese

News Update 22-AUG-2014: More TelexFree Lawsuits, Zeek Lawsuits, and Phil Ming Xu (WCM) lawsuits

A lot of developments regarding various closed ponzi schemes in recent months...

According to an expert tracking ponzi scheme, a new Ponzi scheme was discovered every 5 days in the US. That's right, every five days, just during the first 6 months in 2014, with over 1 BILLION dollars in potential losses.

But here's some news...


Court Approves Zeek Receiver to Sue International Winners

US Federal Judge overseeing the receivership of Zeek Rewards has approved the receiver's request to start suing "net winners" who do not reside in the United States. Previously, receiver have already sued most net winners in the US who has gained 1000 dollars or more from Zeek Rewards. Many have already settled for a lesser amount, though a few notable exceptions are the really top winners, who have gained anywhere from 500K to well over a million dollars from Zeek.

It is worth noting that several prior top promoters of Zeek has indeed fled the US to various countries, including the Dominican Republic and the Philippines.

Speaking of foreign countries...


Federal Prosecutors Allege Extremely Complex International Fraud Regarding TelexFree

According to documents filed with Federal court overseeing the TelexFree case, Federal prosecutors asked the judge to designate the case as "complex case" which will make it exempt from the "Speedy Trials Act" that requires the indicted defendant to be tried within 70 days, because there are significant portions of fraud linked to Brazil and will require foreign investigation / testimony, and subpoenas.

Prosecutors asserted that they have seized 400 TERAbytes of data spanning 46 servers, 26 separate computers from TelexFree and 3 more from grand jury subpoenas containing yet more records.  There are total of 185 grand jury subpoenas issued for evidence related to TelexFree such as business records. They have not yet compiled catalog of existing evidence, and there are strong possibilities that they will need to travel to Brazil to interview yet more witnesses and/or gather more evidence there. Thus, there's no way this can be done in less than 70 days.

Judge has yet to rule on this motion.

In related TelexFree news:

Breaking News: Brazilian TelexFree promoter shot, one killed; Peruvia TelexFree promoter arrested

Peruvian Arrested at Airport for TelexFree Fraud

Peruvian alleged fraudster who recruit people into the TelexFree ponzi scheme was caught at the airport airline counter by Peruvian authorities, according to trome.pe and taken into custody.

Detectives of Peruvian Judicial Police arrested Yoel Alexander Sandoval Mamani (age 24), better known as "Uncle Manrique of Cusco" at the airport. When confronted, he initially denied being the person sought for million P$ fraud, and was carrying a hidden bag with six thousand P$ "that were products of the fraud that was Telexfree International". Then he confessed that he intended to go to Brazil "to safeguard his financial integrity" after one of his fraud accomplices was arrested in Cusco.

http://trome.pe/actualidad/callao-detienen-sujeto-acusado-realizar-estafas-internet-2019202


Ambush in Brazil over TelexFree losses

A man was ambushed in Brazil when walking to work on Wednesday (13th) for his graveyard shift (10PM) and shot through the head. Police stated this was due to the victim having enticed the shooter previously to put 3500 R$ into the TelexFree fraud. The alleged shooter is still at large.

News Update 15-JUL-2014: Trivita Settle with FTC; SEC oppose Merrill access to 4 million; TelexFree Trustee issued more subpoenas

Seal of the United States
Federal Trade Commission.
(Photo credit: Wikipedia)

Remember, readers: VERIFY the information for yourself. If they don't include links, their news probably cannot be trusted. Even if they include links, make sure it's to a reputable website like news websites and such.


Trivita Settle with FTC?

According to leaked letter to its affiliates, Trivita has settled a demand from Federal Trade Commission against its alleged false health claims regarding its Nopalea related products. Nopalea, also known as prickly pear (a type of cactus), is reputed to have some healing properties and is often pushed by so-called alternative medicine proponents in the same manner as prior fads such as noni, mangosteen, and acai berry products.

Report by Courthouse news showed that FTC filed the demand on July 11th. However, this did not seem to have received any news coverage.  http://www.courthousenews.com/2014/07/11/69432.htm

According to leaked letter as published on BehindMLM (and thus far, unverified), the settlement involves stop making false claims, and paying a large fine with no admission of wrongdoing and no stop of sales of such products (provided no further misleading claims are made). All affiliates must acknowledge the new restrictions or their commission will be withheld pending acknowledgement.

EDIT: FTC's own press release just dropped:

http://www.ftc.gov/news-events/press-releases/2014/07/cactus-juice-marketers-pay-35-million-refunds-consumers-deceptive


SEC opposes Merrill's "motion" to release 4 million for "expenses"

James Merrill, co-owner of TelexFree, out on bail, had previously filed a motion to release over 4 million dollars in one of the frozen accounts to pay for his legal defense. And SEC has filed an answer to that, explaining that James Merrill have plenty of assets available including accounts of several hundred thousand dollars, not to mention possible other sources (one of which is the house he used as bond to get himself out of jail). Why was he asking for 4 million in possibly tainted funds from alleged Ponzi scheme TelexFree? And since he haven't been indicted (merely charged), how much is his lawyers charging to require that much money, beyond what he has now?

News Update 17-JUN-2014: TelexFree James Merrill out on bail; TelexFree trustee subpoena everybody for info; TelexFree victims tell their stories to Boston Globe

Hook, Line, Sinker (How I fell for a phishing scam) (Photo credit: ToastyKen)

Remember folks, read trustworthy sources, not random internet blog posts and Facebook messages. I give you the source of my info, so you can see for yourself.


TelexFree co-owner James Merrill let out on bail

According to Boston Globe, TelexFree co-owner James Merrill was allowed out of jail when the judge decided the criteria for his bail is high enough, which includes:

• THREE houses for collateral, including 2 owned by him and one by his sister ($900000 bond)
• Wear a GPS tracker
• Not leave the state
• Give up his passport
• Must stay at home between 8PM and 8AM

Federal judge Tim Hillman ruled that unlike Merrill's partner Carlos Wanzeler, who had previously fled to Brazil (where he's originally from and still have relatives there), Merrill has deep ties to the Massachusetts community and really has nowhere to run outside of the US. 

http://www.bostonglobe.com/business/2014/06/17/telexfree-owner-james-merrill-set-free-bail/cSMbK8slkVxZNxEISoKdRO/story.html

NOTE: Click through to see actual judge ruling in this bail hearing. 

TelexFree trustee subpoenaed everybody for information

With little to go on how to administer the estate of TelexFree, the new bankruptcy trustee for TelexFree, Stephen Darr went for the fastest way: he subpoenaed all the different firms that advised TelexFree, which includes:

• PriceWaterhouseCoopers (former financial advisors)
• Alvarez and Marshal / William Runge (restructuring advisors)
• Kurtzman Carson Consultants (bankruptcy claims / noticing agent)
• Gordon Silver (TelexFree lawyers in Nevada)
• Greenberg Traurig (TelexFree lawyers in Massachusetts)

The subpoena demands any and all documents, emails, correspondences, phone (cellular or landline) records pertaining to TelexFree, affiliates, or subsidiaries, any and all financial accounts and related documents, any and all disbursement registers for every account, any documents relating to financial information, esp. those involving Global Payroll Gateway, International Payout Systems, Propay, etc. any and all tax documents, state or Federal, any and all internal financial statements, any and all properties and other assets including intellectual properties, any appraisal of such assets, any and all communications and other documents involving TelexFree or affiliates, creditors, and more. 

News Update 30-MAY-2014: Zeek Receiver First Disbursement Few Months; Sann Rodrigues will NOT get award in Brazilian Congress; Trustee order issued by TelexFree judge

For real news regarding scams and schemes affecting you, stay tuned to REAL news, not bogus news spread through your uplines and similar people out to recruit you.


Zeek Receiver Announce First Distribution Coming 30-SEP-2014

On the ZeekRewardsReceivership website, receiver Ken Bell announced that the first interim distribution is tentatively scheduled for 30-SEP-2014. All people who have filed a claim must have accepted the claim by 15-AUG-2014 to be paid by 30-SEP-2014. Also, those outside of the US must sign the OFACS waiver as well. Please see the ZeekRewardsReceivership.com update for yourself, as linked above.

Obviously this will NOT be the only distribution, but rather than make victims wait even longer (Zeek was closed in 2012!)  a distribution will be made now while receiver goes after more net winners.


Sann Rodrigues will NOT receive award in Brazilian Congress

An event arranged by a Sao Paolo business leader Regino Barros to honor Sann Rodrigues, accused pyramid scheme TelexFree co-conspirator, and other people, has been cancelled hours before it was to start, according to iG News in Brazil. Sann Rodrigues was scheduled to receive "multi-level marketer of the year" award, according to program notes for the event, where Regino Barros will name Sann Rodrigues to "Multi-level Marketing Regulatory Agency", which is a private organization, despite the official sounding name and is not a government agency, according to iG. The senator who booked the room in Congress for Barros apparently was surprised at seeing Rodrigues' name on the list of honorees, but replied "we should not crucify before we have all the fact." when questioned by iG about Rodrigues. It is unknown if Rodrigues would have attended personally.

http://economia.ig.com.br/2014-05-29/homenagem-a-lider-da-telexfree-no-senado-e-cancelada.html (in Portuguese)  and thanks to PatrickPretty for the lead

BREAKING NEWS: Judge Released Katia Wanzeler, require her to surrender passport and not leave Massachusetts

According to anonymous sources as revealed to Boston Globe, Katia Wanzeler was released on Friday, 23-MAY-2014. This cannot be confirmed because she was arrested on material witness warrant at JFK Airport for testimony about the TelexFree fraud in front of a grand jury, and such proceedings are secret. She was required to surrender her passport and required to stay in Massachusetts. Attempt to leave could trigger an arrest and prolonged jail stay due to contempt of court.

Katia Wanzeler was arrested a week ago, at JFK airport (in New York, not Boston) trying to board a flight to Brazil with a one-way ticket, along with 4 suitcases and $3000 in cash. She has yet to be charged with any wrongdoing.

http://www.bostonglobe.com/metro/2014/05/24/judge-frees-wife-telexfree-owner-accused-fraud-alleged-global-pyramid-scam/QujW5kmVdeK87XF9E7ViaN/story.html

News Update 21-MAY-2014: James Merrill in jail, Merrill's Brother Subpoenased, Wanzeler spotted in Brazil

James Merrill Bail Denied

As reported yesterday, James Merrill, co-owner of TelexFree and now subject of criminal investigation by US Department of Justice, has his bail denied by magistrate as he's deemed a flight risk despite promise to surrender passport and/or surrender deed of his home.

http://amlmskeptic.blogspot.com/2014/05/breaking-news-telexfree-co-owner-james.html


James brother John Merrill subpoenaed by Massachusetts Secretary of State

Boston Globe has just reported that the Mass SecState Bill Galvin has subpoenaed James Merrill's brother, John Merrill, head of Fidelity Bank, for an interview, believed to be involving TelexFree and James Merrill.

While Fidelity Bank was among the various banks that TelexFree had a financial relationship with, Worchester Biz Journal reported that a spokesman in Bill Galvin's office confirmed that this is about whether John Merrill has any personal knowledge or involvement with TelexFree, instead of a bank relationship.

A Fidelity Bank spokesperson has stated that John Merrill have no statement at this time, and neither does the bank except to say that they believe the bank has committed no wrongdoing, and is cooperating fully with law enforcement.

http://www.wbjournal.com/article/20140521/NEWS01/140529983/1002

Acceris Realty, owned by Katia Wanzeler, involved in TelexFree in multiple ways

In related news, documents filed to court as evidence indicated that "Aceris" (or Acceris) Real Estate is one of the various companies setup by the Wanzelers, with Joe Craft's help, and may have received money from TelexFree.

Acceris Realty was registered by Joe Craft, CFO of TelexFree, back in early 2012, according to corporate records, before he became CFO of TelexFree. Acceris is owned by Katia Wanzeler, and is related to multiple properties in Massachusetts. Joe Craft is best known for his role for attempting to retrieve his laptop and 38 million in TelexFree cashier's checks WHILE the office was raided by Federal agents on April 16th and attempted to pass himself as a mere "consultant for TelexFree bankruptcy", and only reluctantly opened the bag for Sheriff's deputy when asked, and the checks were discovered. At least one of the checks was made out to Katia Wanzeler for amount of over 2 million dollars. It is unknown how much other funds had Acceris received from TelexFree, and whether this may constitute money laundering.

This, along with other TelexFree related companies also registered by Joe Craft, raises questions on how deep is the relationship between Joe Craft and the TelexFree coowners Merrill and Wanzeler, esp. prior of him becoming CFO of TelexFree. And how aware is he of the REAL financial situation at TelexFree.

Carlos Wanzeler, along with daughter Lyvia, is believed to have driven into Canada while his house and company was raided by Federal agents on April 16th, the day after TelexFree filed for bankruptcy. The BMW they drove was registered to Aceris, according to documents filed in the "material witness" warrant used to take Katia Wanzeler (Carlos' wife) into custody. There are unconfirmed reports that Katia may have driven a vehicle owned by Aceris to JFK Airport in New York. When detained by Federal agents at JFK, Katia Wanzeler has one-way ticket to Brazil purchased by someone in Brazil (believed to be Carlos Wanzeler) four suitcases, and $3000 in cash.

http://patrickpretty.com/2014/05/20/realty-firm-linked-to-carlos-and-katia-wanzeler-also-linked-to-former-telexfree-cfo-joe-craft/


Carlos Wanzeler may have reached Espirito Santo, Brazil

According to TelexFree's Brazilian lawyer Antonio Carlos de Alemeida Castro, aka "Kakay", Carlos Wanzeler is in Espirito Santo, and Kakay had spoken to him already, as reported by Globo.

http://behindmlm.com/companies/telexfree/james-merrill-denied-bail-carlos-wanzeler-surfaces-in-brazil/

BREAKING NEWS: TelexFree co-owner James Merrill bail denied, will stay in Federal Jail

News just broke that the judge has denied bail to TelexFree co-owner James Merrill, despite promises of him and his wife to surrender passports and put down deed to their house as security bond.

Judge cited that Merrill still have access to many accounts not yet frozen in areas outside of US jurisdiction, and it is possible other top promoters, not charged yet still sympathetic to TelexFree, may choose to hide him and/or help him escape should bail be allowed. Perhaps even Carlos Wanzeler, believed to be in Brazil and considered a fugitive by USDOJ, may help him escape.

MLMSkeptic points out that Carlos Wanzeler is believed to have tried to help Katia Wanzeler, his wife, escape the US buy buying her a one-way ticket to Brazil. She was caught at the airport with 4 suitcases and 3000 in cash... and not Boston airport but further north, JFK Airport in New York. It was believed that Carlos Wanzeler himself have left the country LAST MONTH by driving into Canada.

Merrill's lawyer vowed to appeal the decision.

http://www.telegram.com/article/20140520/NEWS/305209476/1116#.U3u9fm5VYdU.twitter

Related articles

• (UPDATE) BREAKING NEWS: Wife of Carlos Wanzeler, TelexFree fugitive, detained at airport
• BREAKING NEWS: TelexFree head James Merrill arrested by Homeland Security, Wanzeler wanted as fugitive
• TelexFree News Update 16-MAY-2014: Merrill will stay in jail for now; No News on Wanzeler; Possible Reload Scam Charged
• TelexFree Owners Face Criminal Charges

TelexFree News Update 16-MAY-2014: Merrill will stay in jail for now; No News on Wanzeler; Possible Reload Scam Charged

According to Boston Globe, James Merrill was remanded into custody of DOJ after spending several days in a Federal facility in Rhode Island. At the bail hearing, Merrill's lawyer and wife affirmed their opinion that Merrill was not a flight risk and they are willing to sign over the deed of their house as security bond. On the other hand, DOJ lawyers stated that this may be the largest Ponzi scheme DOJ had ever charged in terms of possible victims and they simply can't take the risk should Merrill bolt (like a rabbit).

The judge has continued the case until Tuesday. Merrill will remain in Federal custody until then.

http://www.bostonglobe.com/business/2014/05/16/telexfree-owner-sent-back-jail-for-weekend/9UVXjaCdqx1M83VR8dAlDO/story.html


There currently is no further news on the Wanzeler or the other alleged co-conspirators, after Wanzeler's wife Katia Wanzeler was taken into custody... at JFK Airport (New York) with 4 suitcases (full?) and 3000 in cash... and a one-way ticket to Rio de Jainero, Brazil purchased for her FROM Brazil... who paid cash.  She's being held as material witness... without bail, as she's considered a flight risk.

http://amlmskeptic.blogspot.com/2014/05/breaking-news-wife-of-carlos-wanzeler.html

And it's already reported here that Wings Network, which "voluntarily shut down", was charged next day by Massachusetts SecState Bill Galvin as a possible reload scam following TelexFree. In a press release, Galvin stated that his investigators are now aware of a group of promoters and scams that targets the same group of victims over and over, and he will likely investigate even deeper to protect the citizens of the commonwealth of Massachusetts.

http://amlmskeptic.blogspot.com/2014/05/breaking-news-massachusetts-charged.html

(UPDATE) BREAKING NEWS: Wife of Carlos Wanzeler, TelexFree fugitive, arrested at airport, denied bail

Boston Globe has learned that Katia Wanzeler, wife of Carlos Wanzeler, and alleged recipient of at least one cashier's check found in TelexFree, was detained and arrested at an airport (presumably, Boston Logan Intl John F. Kennedy Intl in New York)

#TelexFree co-owner’s wife arrested as she tried to leave the country http://t.co/wMuzqLIr5P via @BostonGlobe
— Beth Healy (@HealyBeth) May 15, 2014

Carlos Wanzeler has left the country several weeks ago, without informing his attorney. US DOJ considers Carlos Wanzeler a fugitive and apparently a warrant for his arrest had been issued.

James Merrill, co-owner of TelexFree, was already arrested last week.

UPDATE: According to affidavits filed with the court by Homeland Security, Katia Wanzeler's one-way ticket was purchased in cash by "someone in Brazil" (presumably, Carlos?)   Katia was detained as "material witness" by Homeland Security. According to Katia Wanzeler, Carlos Wanzeler and daughter (?) Livia Wanzeler drove to Canada on the day of the raid by HSI/ICE/FBI/whoknowswhatelese on TelexFree office, and from there, flown to Brazil.

UPDATE 2: According to reports cited by BehindMLM, Katia Wanzeler was denied bail (which means she's indeed ARRESTED, not merely detained), as she's found at JFK with $3000 USD in cash, as well as FOUR fully loaded suitcases (70 pounds each?) AND one-way plane ticket to Rio de Jainero, Brazil. Her lawyer tried to argue that she's merely going for a visit with clothes for relatives, and will return in 1 week. The judge did not accept that explanation, and bail was denied as she's a flight risk.

According to affidavit filed earlier by Federal agents, Katia earlier, when questioned by agents who served a search warrant on the Wanzeler residence along with on TelexFree HQ, claimed that her husband is staying at a hotel, when in fact her husband, along with daughter Livia, drove north into Canada and caught a plane there to Brazil when situation turned dire. This raises the possibility of Katia being charged with obstruction of justice / impeding active Federal investigation later by USDOJ.

IN RELATED NEWS: James Merrill, the TelexFree co-owner that's currently in custody, has his bail also denied due to possible flight risk.

http://behindmlm.com/companies/telexfree/wanzelers-wife-arrested-denied-bail-and-in-tears
http://www.nydailynews.com/news/national/wife-accused-billion-dollar-ponzi-schemer-fly-brazil-feds-article-1.1794070
http://wwlp.com/2014/05/15/ny-judge-jails-wife-in-mass-fraud-scheme/
http://www.bostonglobe.com/business/2014/05/15/bmw-ride-quebec-flight-sao-paulo-delivered-telexfree-owner-refuge-from-authorities-his-wife-and-business-partner-are-custody/zxGZI8Lvrlp9DccSVtyaCO/story.html

If your name is among the "TelexFree 8", don't try to leave town.

BREAKING NEWS: TelexFree head James Merrill arrested by Homeland Security, Wanzeler wanted as fugitive

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.

http://behindmlm.com/companies/telexfree/telexfree-owner-arrested-criminal-charges-filed/#more-17057

Related articles

• Owner of Marlborough's $1 Billion Pyramid Scheme, TelexFree, Arrested
• One TelexFree Owner Arrested in Worcester
• NEWS UPDATE: TelexFree Insiders Fled or Tried to Cut Deals, WorldVentures files appeal to pyramid scheme decision
• Boston feds charge 2 in alleged pyramid scheme

NEWS UPDATE: TelexFree Insiders Fled or Tried to Cut Deals, WorldVentures files appeal to pyramid scheme decision

First, TelexFree news update... For those of you anxious to learn the fate of your money...

TelexFree co-owner Carlos Wanzeler may have left US for Brazil

We have received news that Carlos Wanzeler was a no show at court where they are supposed to show cause that the restraining order should NOT be turned into a full injunction. When questioned, Wanzeler's lawyer admitted that it would not surprise him if Wanzeler had went back to Brazil.

As no criminal charges have been filed, he is free to leave the country if he chooses.

Lawyer for Joe Craft (CFO) quibbled over language that he claimed made him admit to wrongdoing if he signed the TRO. Judge, with SEC concurring, changed some language.

Lawyer for Steve Labriola (CMO) then requested the same changes to be done to his client's TRO.

There are many other quibbles, such as Merrill and Wanzeler's lawyers asking judge to release the cleaning business (also frozen) as well as minor amounts to deal with living expenses.

See Boston Globe  http://www.bostonglobe.com/business/2014/05/07/one-telexfree-owner-appears-have-left-while-grand-jury-investigation-continues/kZo2XxKLO1UrNAjIZlrr7N/story.html

See BehindMLM http://behindmlm.com/companies/telexfree/telexfree-insiders-try-to-cut-prelim-injunction-deals

BREAKING NEWS: TelexFree's consultant "ISG Telecom" quits, calls TelexFree "alleged crooks"

TelexFree, despite its name, has NO license to operate long distance until recently neither in US nor Brazil. That only changed when they hired ISG Telecom and its head, Joe Isaacs and received an FCC license in the US in late 2013. It is in the process of applying to various states when the bankruptcy hit.

Mr. Isaacs has a history with MLM through FHTM, but that's a separate story altogether.

On April 18th, 2014 (Friday), Joe Isaacs issued a letter to all the state commissions he had applied to on behalf of TelexFree, stating that he had been lied to, the financial statements are utter fabrications, and the affidavits filed are probably lies too. He quit!

You can read the letter, as spotted by a BehindMLM member "Farao" on the Washington State UTC website:

Good job, Mr. Isaacs. Sure wish you never took on this "hot potato", eh? Better late than never.

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
http://www.metrowestdailynews.com/article/20140418/NEWS/140416010

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 Asdupdates.com
see original at https://sites.google.com/a/asdupdates.com/files-website/sec-v-telexfree-inc  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.

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.

http://www.kccllc.net/telexfree/document/1412524140418000000000004

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.

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:
http://www.sec.gov/litigation/complaints/2014/comp-pr2014-79.pdf

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:

TELEXFREE, INC.,
TELEXFREE, LLC,
JAMES M. MERRILL,
CARLOS N. WANZELER,
STEVEN M. LABRIOLA,
JOSEPH H. CRAFT,
SANDERLEY RODRIGUES DE VASCONCELOS,     (i.e. Sann Rodriguez)
SANTIAGO DE LA ROSA,
RANDY N. CROSBY and
FAITH R. SLOAN,
Defendants,
and
TELEXFREE FINANCIAL, INC.,
TELEXELECTRIC, LLP and
TELEX MOBILE HOLDINGS, INC.,

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 PatrickPretty.com

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.