Wednesday, August 13, 2014

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.”  --
That can't be legit.

But wait, there's more!

It surely did not help when their own "top promoter" Sann Rodrigues (not his full name) decided to walk through the entire building speaking Portuguese with a cameraman and pretending the whole thing belong to TelexFree.

This is downright fraudulent misrepresentation.

And this was not Sann Rodrigues' first rodeo. Back in 2008 he had already been sanctioned once by the SEC for a ponzi scheme involving franchises to sell phone cards.  Swap phone cards for VOIP, and you pretty much have TelexFree.

And now up to a million people in up to 190 countries are victims of TelexFree.

The saddest part is the process of repatriation will take YEARS, not months, according to the trustee.

What's the lesson? When someone tell you the truth, you have to be willing to listen.

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