Scam Alert: Bitcoin as disguise for Ponzi scheme

EDITOR'S NOTE: I counted the difficulty wrong. It's FAR MORE HOPELESS than I ever imagined. See revision throughout the last half of the article.

In the past 6 or so months there has been a plethora of suspect Ponzi schemes that involves Bitcoin as its disguise. Some of them are basically pure HYIPs (BitClub Network, Bitcoin Zones), while others are existing schemes that decided to incorporate Bitcoin as part of its various schemes (GetEasy, Paymony) Here's description from one of them:

XXXXXXX costs $99 for your membership. 

You can then buy shares in their three mining pools for $500; $1,000; and $2,000 per share respectively. 

Every share you purchase will pay you daily payouts for 1,000 days.

This, gentleman, is an unregistered security, as defined by US law known as the Howey Test.

A security in the US is defined as:

1. investment of money due to
2. an expectation of profits arising from
3. a common enterprise
4. which depends solely on the efforts of a promoter or third party

You "buy shares", you expect "payouts", you buy into "pool" which is obviously a "common enterprise", and payout solely depends on some unknown "mining pool".

This is OBVIOUSLY an investment security, and it's ILLEGAL to offer in the US of A.

"Now wait a minute", I hear you ask... "Are you telling me Bitcoin mining is illegal?"

NO! You see, in a *typical* bitcoin mining operation, you contribute CPU POWER ONLY (think of it as labor or material), not actual money. For example, this is how you join the BitMinter pool:

1. Register
2.  start bitminter clientBitminter client: Hit the start button to start Bitminter client. You get bitcoins for the work it does. Works on Windows, Linux and Mac. Requires updated Java. Other clients: bfgminer, cgminer, etc. Connect to the pool at stratum+tcp://mint.bitminter.com:3333. As user name put your Bitminter user name, an underscore, then a worker name, e.g. DrHaribo_asic3. In case you have firewall issues, port 443 and 5050 (Stratum) are also available. There is no password check, any password is accepted.
3. Get a wallet to transfer your coins to. Make sure you secure your wallet.

Other actual MINING pools are the same: you join by contributing CPU / processing power, NOT actual money.

In fact, you can join one now, using your regular desktop PC. It won't do much compared to dedicated hardware that costs THOUSANDS of dollars, but you can do it for FREE (and your payout will be negligible).

Ah, but you say, but *maybe* they really are buying the hardware to do the mining with the money you gave them?

Then it'd be a stupid investment, and I'll explain to you why by crunching some numbers.

BREAKING NEWS: Australia authorities sues Lyoness; alleges pyramid scheme and referral selling

According to press release from ACCC (Australian Competition and Consumer Commission) has launched a lawsuit to shut down Lyoness and related entities from operating in Australia. According to ACCC: 

The ACCC alleges that Lyoness has operated the scheme in Australia from mid-2011 and that it continues to operate the scheme. The scheme offers ‘cash back’ rebates to members who shop through a Lyoness portal, use Lyoness vouchers or present their Lyoness card at certain retailers. 

Whilst cash back offers themselves are not prohibited by the Australian Consumer Law (ACL), the ACCC alleges that the Lyoness scheme also offers commissions to members who recruit new members who make a down payment on future shopping.

... 

“Under the Australian Consumer Law, it is illegal not only to establish or promote a pyramid scheme, but also to participate in one in any capacity," Mr Sims said. 

The ACCC also alleges that the conduct by Lyoness breached the ACL prohibition on ‘referral selling’, where a consumer is induced to buy goods or services by the promise of a commission or rebate contingent on a later event.

First hearing is set for September 16, 2014 in Australia. No word from Lyoness just yet.

(Thanks for BehindMLM and PatrickPretty for the heads-up)

Related articles

• BREAKING NEWS: Lyoness in trouble in home country Austria?
• Why do Some MLMers expect other people to take them seriously?
• News Update 07-JUN-2014 TelexFree and Lyoness updates
• Scam Study: TVI Express

An 2014 Update on AiYellow: Is this thing for real or for grins?

Recently, there seems to be a resurgence of comments, on AiYellow, probably because my previous blog post on AiYellow is somehow now #3 on Google search when you search for AiYellow, as of today, 18-AUG-2014.

Wow, how did that blogpost got to #3 search for AiYellow?

This, inevitably, has drawn in various defenders of AiYellow, who copy-paste a bunch of marketing material, without understanding the CONCERNS I had brought up almost two years ago regarding the legality and utility of AiYellow.

So far, it seems nothing has changed regarding its business practices, and the products are being marketed with the wrong emphasis, with its utility (i.e. how effective it can be) in further doubt.

Let's study one aspect of the problem... "Alexa Ratings". Feel free to check it yourself, as I can only offer you a snapshot of the information as I see them today, 18-AUG-2014.

Alexa rating for AiYellow can be found here: http://www.alexa.com/siteinfo/aiyellow.com  It's the 5th most popular link regarding AiYellow, as shown by Google search above. You should see something like this:

Alexa Overview of AiYellow.com, part 1, red lines and words are my comments

Global rank 7117th, yet in South Africa 135th. Why is it so much more popular in South Africa than elsewhere where global rank has dropped 2000 places in last 3 months? Let's keep looking.

Why is AiYellow more popular in South Africa and Thailand,
than where it started: Argentina? Colombia? 

The audience geography is strange. Normally if a website started in a particular country its countrymen would have embraced it first, so it should be more popular at home than abroad. AiYellow is exactly the opposite: it's more popular in South Africa and Thailand than its home in Argentina. This is a very weird growth pattern, keep that in mind while we keep looking.

Only 15% of AiYellow's visitors came from search engines
(but there's an upward trend)

According to Alexa, only 15% of visits to AiYellow came from search engines, and the most popular search terms seem to be South African. However, most visits seem to have came from the parent company, AmarillasInternet.com.

But it is where the visitors actually go that is the most interesting:

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.

Scam Post-Mortem: TelexFree location lies confirmed by authorities

Back in July 2013, LONG before TelexFree got raided (April 2014) by DHS, FBI, etc. MLMSkeptic had warned the readers about how TelexFree office is a virtual office, and its co-owner, James Merrill, is allowing misinformation, such as "TelexFree own the whole building" to be perpetuated by its members in multiple languages on multiple continents.

Today brings an end to that chapter of the TelexFree lie; the bankruptcy trustee has terminated the $5944 per month lease of the TelexFree office, which only started January 2014 and is scheduled to run through March 2015. By forfeiting the deposit and a portion of the furnishings, the lease has been terminated, saving tens of thousands of dollars that can be repatriated to the victims of TelexFree.

In other words, it took another 5 MONTHS (July to December 2013) of constant pressure by "promoters" to convince TelexFree that they need a "real" office rather than the virtual one they had been touting. And they are willing to pay THOUSANDS of dollars a month just to keep up appearances, with office staff that does nothing except to smile and look busy, and there were only 7 of them for a company that allegedly did 1 billion dollars of business a year, according to themselves.

It is further alleged that in 2013, TelexFree reported sales of $1.016 billion, while known sales of the TelexFree VoIP product represented less than 0.1 percent of TelexFree’s total revenues.  --- FBI press release 

But TelexFree — whom some affiliates say is a $1 billion company with a VOIP product — has only seven employees at its Marlborough office, according to regulatory filings in Tennessee. These employees work in “administration, sales and marketing, accounting, and operations positions.”  -- PatrickPretty.com

That can't be legit.

But wait, there's more!

Scam Psychology: Sponsorships can be fradulent; the story behind Energee, Indy Car, and possible Ponzi scheme

In May and June 2014, a new energy drink suddenly popped up on the market called "Energee", backed by some "Integrity Asset Group", who apparently announced that they will be the primary sponsor for Bryan Herta Autosports's Indy Car, and they have the pictures to prove it. This is the announcement on BHA's website:

BHA announcement that Energee will be their sponsor for IndyCar, as of 09-MAY-2014

Yet less than 2 months later, 31-JUL-2014, BHA is suing Integrity for breach of contract.

BHA sues Integrity Assets Group, et al, 31-JUL-2014

That of course doesn't stop all the press releases, and publicity photos, announcements, videos...  Mostly to Spanish speaking folks esp. South America.

Spanish promoter touting Energee as "next best income opportunity"
promises bazillion more products like electronics, vehicle tires, and more

What happened, and why did IndyCar and a famous Indy racing team accept an unknown sponsor?

Lack of due diligence.

Let us do a little research into what is this "Integrity Assets Group" ...

Bad Argument: The "We shall see" parting shot and how it's linked to cultism

When defenders of a certain scheme ran completely out of viable arguments, they will often depart with a throwaway comment:

"we shall see"

It has several variations, like

"Time will tell"

"History will be the judge"

"Truth will prevail"

and such.

This is a pretty lame departing shot, as it basically demonstrate they have *faith* that they will be vindicated eventually, but they don't have any evidence to support their opinion right now, which makes that a BELIEF.

faith

fāTH/

noun

1. 1.

   complete trust or confidence in someone or something.

   "this restores one's faith in politicians"

   synonyms:

   trust, belief, confidence, conviction; More
2. 2.

   strong belief in God or in the doctrines of a religion, based on spiritual apprehension rather than proof.

   synonyms:

   religion, church, sect, denomination, (religious) persuasion, (religious) belief, ideology, creed, teaching, doctrine More

Note definition #2... "based on ... apprehension rather than proof".

That's exactly what happened here... they have only their own apprehension of how the scheme will make them rich, rather than actual proof. It's religious, rather than evidence-based.

The fact that many scheme promoters behave in a religious fashion have lead to cult experts in calling such schemes "commercial cults".

News Update 01-AUG-2014: Zeek Refund Coming 30-SEP-2014; More Zeek Winners Get Sued; Zeek Heads Reach More Settlements

Yep folks, this is turning into an all Zeek Rewards Ponzi aftermath update. And yes, I have links, which you should ALWAYS CHECK to make sure I'm reporting stuff accurately. (And if you don't see links, ask)


Zeek Refund Round 1 May Be Coming 30-SEP-2014

According to court documents as reported by ASDUpdates, Judge Mullens has approved the first distribution of refunds for Zeek Rewards, tentatively scheduled for 30-SEP-2014

Stay tuned to the Zeek Rewards Receivership website for actual announcement. Speaking of which...

Scam Detector: What is "Cockroach Theory", and how does it apply to suspect schemes?

cockroach (Photo credit: TomSpinker)

Ever heard of the "cockroach theory"?

It's quite simple, actually. When you see one cockroach, there's probably a lot more hiding nearby.

When applied to investments and companies, it means when you see one problem, there's probably a lot more problems that you are not seeing. (And you should jump ship ASAP)

The theory is also applicable to potentially shady opportunities, actually. If you are smart enough to read the signs, and not ignore them.

Let's take one very obvious example: Zeek Rewards. They were shut down by the Feds in August 2012. But signs had been there for MONTHS that it was in trouble.

Zeekler, the auction, had been in operation since 2010 (as FSC auction and later Zeekler) without an auction license (required in North Carolina, their home state). They did not obtain an auction license until March 2012! But nobody checked. That may have been a roach but nobody saw it. Because everybody assumed it's all legal.

Did you know that Paul Burks, head of Zeek, was performing as "the singing magician" before he retired from performing and started MLMs instead? You know magic is just deception for entertainment, right? That may have been a roach but nobody saw it, because they've been distracted. 

In April 2012 Zeek Rewards suddenly banned a dozen or so European countries from participating, and gave several bogus reasons, one even blaming the US State Department Office of Foreign Asset Control (OFAC) uttered by the head Zeek Paul Burks himself. However, this was all proven to be lies only weeks later. Turns out they were both hit with thousands of stolen credit cards and by Denial of Service attacks. And their system can't handle it. The lie was pierced by BehindMLM within two weeks. Is that a cockroach you see? Did you miss it?  

By June 2012 they apparently got a local TV station to report on their "success", and even got the reporter to state that the North Carolina's Attorney General office had deemed the business legal. (Wonder whose palm they had to grease to have that happen?)  AG's office was so shocked, they demanded the video be taken down and the text changed on the TV station's website. Oh my, another roach! Did you miss this one too? Or is that "I see no roach (negativity)?"

Scam Psychology: is Positivity Training perpetuating Mental Illness symptoms?

A recent Dilbert comic had this quote

"Certainty about the future is a sign of mental illness."  (NOTE: There's a second lesson here about "we shall (not) be vindicated".)

Why? Because only the self-delusional are absolutely certain about anything... including the future. And self-delusion is a mental illness.

Therefore, thinking only positive thoughts about yourself (well beyond what's needed for self-esteem) and your future is also self-delusion.

But wait, you say, are you saying that I can't give myself a compliment? A thumbs up to myself in the mirror?

No, I didn't say that. Going OVERBOARD with such compliments to the point of ignoring reality is dangerous, and so are anyone trying to dissuade you from reality.

But to explain that, we need to explain how the brain works when it comes to social interactions.

Due Diligence: How to Read an Income Disclosure Statement

It seems that people are losing their basic math skills, or even willingness to apply math to simple problems... such as "should I join _____". Today, we are going to pick an example, and show you how to read such an income statement. And yes, this may involve some WORK, so you should probably sit in front of a computer, as you may need to type in some numbers into a computer (one in library should be fine as long as you have access to Google)

Today's... example, Vemma. Their 2013 income disclosure can be access here:

http://news.vemma.com/wp-content/uploads/2014/03/Income-Disclosure-2013.pdf

Any way, first thing you should note about the two bar graphs is... WHY TWO GRAPHS? Looking at the two graphs should make you realize two things:

1) The two graphs have DIFFERENT scales

2) The two graphs both use exponential scale instead of linear, thus de-emphasized the difference in bar heights. 

In fact, if you regraph the same numbers, using a linear scale, it looks like this (go ahead, do this in Google Sheets yourself)

The red line has the SAME numbers as the Vemma graph, but using a LINEAR scale, combined into a single graph. The blue line is the percentage of all affiliates. 

Roughly translated: vast majority of the company make peanuts, while a selected few made much much more... one made like 2.5 million in 2013. 

Is USANA in trouble? Probably. But It Started a LONG TIME ago.

You may or may not have heard USANA, but it's okay, it's not that important. They sell pills, lotions, and baby formulas. Yes, one of these items does not fit.

Any way, their high pressure tactics in China means they NEVER received a direct sales license in China, even though other companies like NuSkin and Amway have them.

So what do they do? They basically bought one... By buying out a company called BabyCare in China in 2010, and that company did get a direct sales license in China in 2011.

So by merging the product line a bit, USANA now sells baby formula... and gets a backdoor into China, mainly by making Chinese sellers pretending to be in Hong Kong.

Previously MLMSkeptic have pointed out that Hong Kong is often used by flaunt Mainland Chinese laws. Chinese citizens are encouraged to travel to Hong Kong to sign up for various pyramid selling schemes for outrageous promises of IPO riches. One such, Interush, was busted in Hong Kong last year.

Citron Research, which previously pointed out problems with NuSkin and China, has just dropped another bombshell... USANA may be next on the chopping block.

In the article referred to, USANA affiliates in China have been citing some very odd references... USANA founder Dr. Wentz's "Einstein Prize", and a "North American Nutritional Supplement Guide" by "MacWilliams.

Let us examine each one in a bit more detail.

Anti-Scam: Rough Guide to Spotting Shady Opportunities, Part 2 of 3

This guide is an adaptation of "A Rough Guide to Spotting Bad Science" by "Compound Interest", converted for spotting "shady opportunities". For length reasons, this is presented in 3 parts. This is part 2 of 3.

A Rough Guide To Spotting Shady Opportunities  (part 2 of 3)

Shady Opportunities are out there, waiting to take your money on promises of fabulous income... if you hand over your money first. There are twelve signs. Obviously a shady opportunity may not have all the signs, but the more signs you spot, the more shady the opportunity is.

5) Speculative Language

Speculations are not facts, so if the statement contains "weasel words" like "may", "could", "might", and so on, then it's likely to be speculation, rather than conclusion.

You can often spot this when a "lotions and potions" company presents some study that "sort of" proves their product works. But this can also apply to income claims, which is usually frowned upon.

For example, a certain MLM nutritional supplement company's entire product line is based on this speculation published in "Medical Hypotheses (2002)"

...Based on a review of the literature we propose the hypothesis that in situ mobilization of stem cells from the bone marrow and their migration to various tissues is a normal physiological process of regeneration and repair and that therapeutic benefits can be generated with less invasive regimens than the removal and re-injection of stem cells, through the stimulation of normal stem cell migration. We further propose that effort should be made to identify natural compounds characterized by their ability to augment this normal process of mobilization and re-colonization of bone marrow stem cells for the potential treatment of various degenerative diseases. 

If you can't read medical jargon, what it says is "Stem cells are cool. We think stem cells gets into the blood and travel around the body to where its needed to help healing. Maybe we can find a natural something that'll make the body produce more stem cells."

That's right, this is a HYPOTHESIS. There is no proof that having more "loose" stem cells in your body would improve your health (remember, HYPOTHESIS), much less any compound that can do so.

Doesn't stop this MLM company from making products with such claims, of course. In fact, some of the principals in this company where previously sued (under a different company name) in Texas and lost a false advertising suit... also involving stem cells. That company used blue-green algae, some of which are POISONOUS (see "microcystins")  And it seems this particular company is still using similar formulas.

The company may sound confident in stating such things on their advertising materials. Look beyond the marketing material and look at the original research their products are based on. You may be surprised.

Conversely, if a company "guarantees" something, look for caveats and fine print. 

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 13-JUN-2014 (Friday!): TelexFree Faith Sloan plays dumb and begs for money; Solavei goes Chapter 11 Bankruptcy;

Remember, folks, get your news from a trusted news source, like I do. I don't relay unconfirmed information, and neither should you.


Faith Sloan Plays Dumb and Begs Court to Release Money; SEC says "No Way"

Faith Sloan, one of the "TelexFree 8", has filed a motion on 10-JUN-2014 asking court to release about 18K to pay expenses such as lawyers, rent, and food.

However, this is specifically against the injunction that froze her money in the first place. SEC and the judge that issued the freeze has specifically stated that no "carveout" ( i.e. taking money from accounts that contains money that may be tainted by the fraud) will be allowed if the account owner does not declare his/her assets. Thus far, Faith Sloan has refused to declare her assets as she claimed doing so may incriminate herself (i.e. "plead the fifth").

SEC has also long documents that detailed her multiple violations of freeze order, including:

1) Paid $14854 to "Changes Worldwide" another suspect scheme on 24-APR-2014
2) Paid $3990 to "Changes Trading LLC", which is a part of Changes WorldWide, on 28-APR-2014
3) Wired $30000 to her attorney on 7-MAY-2014
4) Transferred her house deed to her mother on 12-MAY-2014

And here she comes asking the judge to release more money to pay rent... to her mother, whom she just gave her house to. AND another $18000 to her attorney.

Hahahahahaha.

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 22-MAY-2014: FBI / HSI Victim Reports; Uganda makes TelexFree arrest; Nevada Denies TelexFree telecom license; Ponzi Experts Talk TelexFree

FBI Badge & gun. (Photo credit: Wikipedia)

News Update for 22-MAY-2014


FBI Needs TelexFree Victims' Help

Federal Bureau of Investigations (FBI) and Homeland Security Investigations (HSI) needs more victims of TelexFree to step forward and report how they are victimized. Please go to the following link to visit the FBI webpage, and fill out a questionnaire at the end.

http://www.fbi.gov/stats-services/victim_assistance/seeking-victim-information/telexfree-inc.-case


Please note this is for the CRIMINAL case, which is separate from the CIVIL case pursued by SEC

http://patrickpretty.com/2014/05/15/update-for-speakers-of-spanish-or-portuguese-secs-telexfree-complaint-now-available-in-your-language/


Uganda Makes First TelexFree related arrest

Uganda makes the first TelexFree related arrest of a local Ronald Muramuzi, who apparently was recruiting people into multiple HYIPs under multiple aliases and alternate names, and thus making himself quite rich. He's alleged to have profited by 2.37 Million USD (over 4 billion UGX)

http://behindmlm.com/companies/telexfree/top-ugandan-telexfree-affiliate-arrested/

BREAKING NEWS: Where is Katia Wanzeler? Asked Her Lawyers

According to an emergency motion filed merely hours ago (21-MAY-2014) in Boston, lawyers representing Katia Wanzeler (yes, there's more than one)  don't know where their client is.

After Katia Wanzeler was taken off the jetway leading to a flight going to Rio de Janeiro, Brazil, at JFK airport last week, she had been detained on a material witness warrant by Federal court in Boston, MA issued 14-MAY-2014, and US Magistrate in New York (which is where JFK airport is) has remanded her to US Marshals to be remanded to Massachusetts as of order of 15-MAY-2014.

And her lawyers claimed that she has NOT appeared in front of grand jury yet, as of today, and they want to know why. And they ask the judge to order the US Marshals to expedite and to hurry along so Katia can regain her freedom, as she had not been charged with any crimes (yet)

This is not on any news, as the documents were filed merely hours ago, and spotted by sharp-eyed Don over at ASDUpdates.

Speculations are running wild, that perhaps USDOJ are preparing charges to hold Mrs. Wanzeler, now that her husband had flown the coop.

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