BREAKING NEWS: Massachusetts filed civil fraud charges against Emgoldex "Team USA"

Massachusetts securities division (MSD) has filed civil fraud charges against "Emgoldex Team USA" and its four members of selling unregistered securities, pyramid scheme, and general public fraud. The lawsuit can be viewed here:

http://www.sec.state.ma.us/sct/current/sctemgoldex/EmGoldex-et-al-Complaint-Docket-No-2014-0056.pdf

If you promote an alleged scam, you can be targeted by your local regulators, regardless of whether you "own" the scam or not. "Emgoldex Team USA" and the four members are certainly not owners, but if that's what local authorities can get their hands on, then the local authorities will do so.

Thanks to BehindMLM and PatrickPretty for the headsup.

Related articles

• BREAKING NEWS: Massachussetts calls iFreeX "rebranded TelexFree fraud"
• BREAKING NEWS: Australia authorities sues Lyoness; alleges pyramid scheme and referral selling
• God and Ponzi: WTOL special report on local church leader's role in Profitable Sunrise pyramid scheme
• Scam Absurdities: Ian Driscoll of BannersBroker ponzi now pushing FlexKom. Leopard Still Can't Change His Spots.

BREAKING NEWS: Massachussetts calls iFreeX "rebranded TelexFree fraud"

According to Massachusetts Securities Division, the first agency to pound on TelexFree fraud, iFreeX is a reload scam targeting TelexFree victims. It even has the same ponzi pimp: Sann Rodrigues (who's actually "Sanderley Rodrigues de Vasconcelos")  People who have verifiable information are urged to call MSD at 1-800-269-5428 to assist in the investigation.

http://patrickpretty.com/2014/09/30/urgent-bulletin-moving-massachusetts-issues-warning-on-ifreex-scheme-ifreex-appears-to-be-nothing-more-than-a-rebranded-telexfree-fraud-for-mobile-phones/

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. 

Scam Psychology: Naive Realism / Anecdotal Fallacy / Argument from Illusion

Illustration of Naive realism or Direct realism. (Photo credit: Wikipedia)

One of the most often used counter-arguments by a scheme participant against skepticism is the self-testimonial, as in "I have done this, so I know it works, and therefore the whole business works!"

Let us assume that they are not outright scammers for the moment (i.e. liar, liar, pants on fire)

What they don't realize is they are operating from "naive realism", i.e. they assumed that everything they experienced is real, when it is quite possible they've been defrauded (magic trick), and they then extrapolated from their limited (but realistic) experience to conclude that the whole business must be "real".  One version of such self-testimonial, and the most often used, is the "It paid me" argument, as in "this opportunity paid me, therefore it's not a scam".

Yet this is the most powerful of all arguments, even if it's false. TelexFree victims in and around Boston, Massachusetts told Boston Globe that pressure from friends and family, esp. when posing with new house, new car, new luxuries, etc. often prove to be impossible to resist, esp. by people with (naive) "unbridled enthusiasm". Quoting from the Boston Globe story:

...Fausto da Rocha said he probably lost $45,000, the proceeds of an insurance payment from an auto accident. He had initially resisted TelexFree, but after friends profited, he decided to join, hoping the investment would accelerate his recovery from bankruptcy a few years earlier and losing his house. Da Rocha, well known in the Brazilian community, said he recruited about 20 relatives and friends. 

“I feel guilty,” da Rocha said as tears clouded his eyes. “My career is gone. I’m going to clean houses with my wife. Cleaning houses is a good business.”

But the social cost is even greater. He had 20 relatives and friends he can never look in the eye again.

Sann Rodrigues, one of the "TelexFree 8" charged by SEC
as part of a scam, showing off his Ferraris and MB and mansion
in Florida in one of his videos (screencap from Vimeo)

Quick Research: What is Eternyon and should you give them any money? (Probably not)

Occasionally MLMSkeptic was asked questions about a specific company. This is both such an investigation and an example about how I do such research. All this is done in about 30 minutes. (It took longer to write this blog post than to do the actual research)

Today's subject... Eternyon

So what the heck is Eternyon? They claim to be "advertising, technology, and e-commerce, using network marketing".

Frankly, their website looks like what some spammers built to catch people unaware, using only stock photos, like those fake universities.

Right now, there's no mention on who runs this business, or where they're located, on their own website. But it's clear it's aimed at Brazilian Americans, because it's in both Portuguese and English.

The wording in English is also quite... interesting. "Our Differential"? "Clients Benefits"? That looks as if it's written in Portuguese then ran through a translator.

It's allegedly centered in Worcester, Massachusetts... Where TelexFree was just closed not long ago by Feds.

You need to search online to find that Eternyon was allegedly founded by Wayne Howe and George Lima... Howe's allegedly a Massachusetts native, while George Lima was born in Rio de Janeiro but emigrated many decades ago.  However, there are no official paperwork viewable by the public proving Wayne Howe and George Lima are indeed the founders or executives of Eternyon, other than words of people trying to recruit you into Eternyon.

Searching Eternyon.com WHOIS hit a "domain by proxy"... They don't want you to know who registered the company domain.

Eternyon refers to itself as "Eternyon LLC" but never stated where the business is registered. There is an "Eternyon" registered in Wyoming: 2014-000657722, first registered in 2014-JAN-24.

You can search Wyoming entity search here:   https://wyobiz.wy.gov/business/filingsearch.aspx

However, this is NOT an LLC, but a "trade name", i.e. "dba - doing business as". And it was registered by yet ANOTHER LLC, at the same address:

Tech Products LLC
255 Park Ave Ste 1000
Worcester, MA 01609 USA

However, Tech Products LLC, which is also a Wyoming entity (2011-000603187), is marked as "inactive-dissolved".

So to make things clear, Eternyon is registered in Jan 2014 by an entity that went inactive merely 4 months later (May 2014). Its executives are unknown. Enternyon is just a name. The company is "inactive - dissolved".

What do we know about the address?

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

News Update 27-MAY-2014: TelexFree losing more telecom license; Trustee to Take Over TelexFree? SEC explains where did the money go

Remember folks... Don't believe crap info passed along by ex-TelexFree affiliates but instead seek out real news websites for information. The TelexFree affiliates are prone to pass along mis-information that they believe are "good news" when they are not.

TelexFree under investigation in Oregon

In a recently filed memo, as found by PatrickPretty.com, Oregon joined Nevada and Minnesota in their slow-move to deny the TelexFree telecom license applications, which was previously started by Joe Isaacs of ISG Telecom when he was helping TelexFree. When the ruse by TelexFree was discovered, Joe Isaacs quickly sent letter explaining he was duped, and he's no longer involved, and all the numbers he filed for TelexFree may have been lies.

http://patrickpretty.com/2014/05/27/telexfree-faces-prospect-of-regulatory-probe-in-oregon/


Judge Signals Quick Approval for Trustee Takeover of TelexFree

(Wall Street Journal) In the first bankruptcy court session in Massachusetts, Judge Holman said he will appoint a trustee to take over the company from the existing management as soon as all the paperwork are in. All parties, including the SEC, US Trustee, DOJ, and TelexFree have no objection or approve of the trustee takeover.

http://online.wsj.com/news/articles/SB10001424052702303403604579588452063956192

Editor's note: This news was passed around by TelexFree affiliates as a "great victory". It is NOT a victory.

Facts are

• Trustee has not yet been appointed yet (soon)
• Appointment of trustee does NOT stop the criminal and civil investigation by DOJ and SEC
• Appointment of trustee does NOT stop the class action lawsuit
• Trustee takeover means EVERYBODY in the company is FIRED. It's be like a receiver (like the one for ZeekRewards) who, under supervision of the judge, can SUE people to see return of assets to pay the creditors (i.e. all of you who are owed money). 

Whoever told you that the bankruptcy has been "granted" is false, and obviously this does NOT prove or disprove that TelexFree is a pyramid scheme. Company is DEAD. 

For a look at what a bankruptcy trustee can do, look up "Irving Picard", who's the trustee for Bernie Madoff's ponzi scheme.

NEWS UPDATE 25-MAY-2014: Katia Wanzeler released but ordered NOT to travel; TelexFree promoter kidnapped for ransom in Peru

As previously reported, Katia Wanzeler was apparently released from custody on 22-MAY-2014, transported by Marshal service on 23rd and delivered to Massachusetts the same day. Testimony is under seal as are the details of her release. She had to surrender her passport and ordered not to leave the state. Attempt to do so would constitute contempt of court and arrest may result.

In other news, La Republica in Peru reported that a vigilante team of TelexFree victims apparently kidnapped their upline/promoter and tried to force him to withdraw money to refund them. However, being amateurs, their suspicious behavior made the bank trigger the robbery alarm, and they ran, but were soon arrested later, where they confessed to the kidnapping and they only want a refund of their money.

http://www.larepublica.pe/24-05-2014/estafados-secuestraron-a-promotor-de-telexfree (in Spanish)

http://www.losandes.com.pe/Policial/20140524/80360.html (in Spanish)

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

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: Massachusetts Charged Wings Network as a scam

ton Only a day after Wings Network announced its own withdrawal from US Market, Bill Galvin charged Wings Network and its top promoters as a scam:

According to the complaint, Wings Network has soaked up over 12 million in past 6 months.

Actual Complaint
http://www.sec.state.ma.us/sct/current/sctwingsnetwork/Admin-Complaint-wingsnetwork-2014-0037.pdf

Boston Globe
http://www.bostonglobe.com/business/other/2014/05/15/galvin-charges-wings-network-with-fraud/DHVhYdDCz3Tu44tvaElUjO/story.html

First Reported by PatrickPretty.com through ASDUpdates
http://patrickpretty.com/2014/05/15/urgent-bulletin-moving-wings-network-charged/

BREAKING NEWS: Wings Network quits US Market

Only days after Massachusetts SecState Bill Galvin expressed some concerns in the US and requested some documents from it, Wings Network decided to cease operation in the US altogether. Mind you, this is less than a month after Mass State and SEC and HSI and FBI, and ICE and who knows what else raided TelexFree.

Wings Network was often pitched by "leaders" in TelexFree as a plan B of some sort after shutdown of TelexFree.

Wings Network website now shows a message to all US IP addresses that it has VOLUNTARILY ceased operation in the US.

You can drawn your own conclusions.

(Thanks to BehindMLM for reference  http://behindmlm.com/companies/wings-network-suspend-us-operations/ )

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

BREAKING NEWS: Massachusetts investigates Wings Network

Boston Globe reports that Secretary of Commonwealth of Massachusetts has launched an investigation into Wings Network, after concerns were brought to his office by citizens with suspicions that Wings Network is a similar scheme to TelexFree, already shut down by SEC.

See PatrickPretty.com http://patrickpretty.com/2014/05/08/boston-globe-massachusetts-issues-subpoena-to-wings-network-program/

BREAKING NEWS: TelexFree Bankruptcy Will Be Moved to Massachussetts

It was just announced (about 30 some minutes ago) Judge Landis of Bankruptcy Court in Las Vegas Nevada has decided to move the case to Massachusetts.

http://www.ponzitracker.com/main/2014/5/6/court-suspends-telexfree-bankruptcy-grants-motion-to-transfe.html

Judge cited many reasons, essentially concluding that the ONLY thing tying TelexFree to Nevada is a mailbox and a piece of paper filed with Nevada. EVERYTHING that had something to do with the company, such as HQ, staff, equipment, assets, and so on, are in or near Massachusetts. Even 10 of the top 30 creditors are in Massachusetts.

Judge did not rule on motions such as which parts of temporary restraining order conflicts with the automatic stay (part of bankruptcy) or the US Trustee's request to have a special trustee placed to oversee the bankruptcy rather than TelexFree personnel (such as Runge and MacMillan).

Stay tuned to MLMSkeptic blog, BehindMLM, PonziTracker, and/or PatrickPretty websites for more updates as they become available.

UPDATE: News now confirmed by Boston Globe

http://www.bostonglobe.com/business/2014/05/06/las-vegas-bankruptcy-judge-will-send-telexfree-case-back-massachusetts/KAo3EqqIOmcfFYGGnjioNP/story.html

TelexFree News Update 5/5/2014: Dominican Fugitive, Class Action Lawsuit

The trial will continue in Las Vegas, but there are other developments.

Dominican Republic Developments

TelexFree top promoter in Dominican Republic Carlos Manuel Vanterpool Severino has apparently gone into hiding, and is considered a fugitive (from the law), according to DR media reports. At least 5 different raids were performed last week by authorities, and various items such as cash, 2 weapons (shotgun and pistol), plus various computers and phones (smartphones and tablets?) were seized.

http://pgr.gob.do/Portal/Contents/Articulos/Noticias/20140504-Procuraduria-asegura-continuaran-allanamientos-torno-caso-TelexFree.ashx (in Spanish)


Class Action Suit Launched Against TelexFree, top promoters and officers, lawyer, banks... 

Class action lawsuit has been filed against TelexFree entities, officers, top promoters, Gerald Nehra the lawyer, and the banks. The 73 page document alleged that TelexFree officers conspirated with the top promoters along with the lawyer Gerald Nehra to violate security laws, promote fraud, and much much more. And the banks did nothing to stop the fraud.

http://www.kccllc.net/telexfree/document/1412524140505000000000004

http://www.metrowestdailynews.com/article/20140502/NEWS/140509026/1994/NEWS

TelexFree News Update 4/29/2014: Banned in Montana, Wanzeler, Merrill, and Craft forced out?

There are not that many updates for Monday... seems everything will be decided on May 2nd.

Montana Banned TelexFree, citing lies about no operating in that state

On April 23rd, 2014 Montana issued a "cease and desist" to TelexFree, after asking it for many months to provide a list of members in Montana, how much had they paid in, and how much had they been paid. Montana requires all MLM companies to register with the state, and TelexFree submitted an old form. When informed they need to submit the right form, the company kept on submitting incomplete information. In October 2013, TelexFree replied that they are gathering information, and have stopped operating in Montana, and in February 2014, claimed that they are no longer seeking to operate in Montana. However, when TelexFree got raided in Massachusetts, Montana has identified at least 34 participants in Montana, totalling over 70000 dollars.

See PatrickPretty.com for details, and thanks to them for spotting it first.

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.