Saturday, May 10, 2014

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

According to updates obtained by through the court PACER system, and spotted by, 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, 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.
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Thursday, May 8, 2014

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.

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Similarities Among TelexFree, Zeek Rewards, and Ad Surf Daily

Telexfree ..
Telexfree ad, but where is your money really going?
(Photo credit: WwW.UrBaNiCaNo.NeT)
With TelexFree's fate in limbo, and people wondering what will happen, it helps to read some REAL HISTORICAL information of similar entities, rather than relying on badly translated and often, outright WRONG translations of news, some even picked up by small regional news outlets as if it's the real thing. Yes, I'm pointing at RTP on Madeira, whose reporter apparently was repeating GARBAGE mis-translated by TelexFree promoters rather than real court documents and decisions (which in turn, was picked up by TelexFree believers as if it's the truth).

Those of you who enjoy listening to sweet little lies, go ahead and tune out the truth here.

Those of you actually interested at the TRUTH should read,, or this blog here (through Google Translate if you don't read English) 

Now, what are common among 2 different ponzi schemes, and the alleged ponzi scheme TelexFree?

FACT: All three claimed to be selling something legitimate
  • Ad Surf Daily (ASD) claims to sell internet ads
  • Zeek Rewards (Zeek) claims to sell penny auction bids
  • TelexFree (TF) claims to sell long distance minutes
FACT: All three claimed that if you give it money, it promised to give you back a lot more money over time
  • ASD makes you a) buy 'ad package', and b) gives you 'rebates' (up to 2% per day) over X days
  • Zeek makes you a) buy 'bids' and b) gives you 'profit share' (up to 1.5% per day) over 90 days
  • TF makes you a) buy Adcentral packs and b) gives you $$$ for 52 weeks at up to 250% profit 
(NOTE: TF last year changed to giving away VOIP packs, which they will buy back from you)

FACT: All three claimed they are NOT investments because you have to do some inconsequential work to "qualify" for your money... if you give them money first.

ASD has you "watching" some video ads, while Zeek and TF have you POST internet text ads. They are inconsequential and worthless. They cannot possibly the reason you're paying that much. Thus, the logical reason is they want you for your money (i.e. that stuff you "buy").

FACT: All three has a nonsensical business model if you think about it
  • ASD: How would you watching each other's ad magically grow revenue if there's no outside source of revenue? Who are buying these ads except EACH OTHER? 
  • Zeek: Is the company actually making ENOUGH from penny auctions to be rolling in profit to pay out at 1.5% daily? And why pay people that amount for inconsequential work like posting ads when you can hire people in Asia to post that for pennies? (And in fact, some companies offer to post those ads for you for a few dollars a month)
  • TelexFree: VOIP has far better providers like Skype, or other chat clients. Why use TelexFree? Why are they paying outrageous rates for inconsequential work?  (And in fact, some companies offer to post those ads for you for a few dollars a month)

But wait, there's more! A LOT MORE!

Wednesday, May 7, 2014

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

See BehindMLM

Tuesday, May 6, 2014

OTHER NEWS: Hong Kong Police Investigating BLGM, Zeek Rewards May Issue Refund in few months

Emblem of the Hong Kong Police Force
Emblem of the Hong Kong Police Force (Photo credit: Wikipedia)
TelexFree grabbed all the headlines, but there are still other news in the Scam world:

Better Living Global Marketing (BLGM) Under Investigation in Hong Kong

According to eKantipur, a news website that specialize in Nepalese issues, Hong Kong police has launched an investigation with BLGM, along with KaChing and RSE Bid. RSE Bid has already closed and owner is in police custody, according to the news. Up to 2 BILLION Hong Kong dollars may have been lost to these 3 schemes from HK Nepalese, according to the article.

Please read the original article at

Thanks to BehindMLM for spotting the news first.

Zeek Receiver Promise Partial Refund Soon, will Sue Out-of-US Net Winners 

According to an announcement from the Zeek receiver website, the receiver has almost concluded sending out the notices of claims. All of the US "net winners" have been served with notice to pay up, and next comes the foreign "net winners"... who will be sued to the extent the receiver deems economical.

As the lawsuit will likely drag on for months or years, receiver expects to issue a partial payment on the funds collected thus far in a few months if not sooner. (Before end of summer).

Please see Receiver's website,, for more details.

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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.

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
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Monday, May 5, 2014

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. (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.

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Stop Believing Bull****; Follow This Guide! (Bonus "Food Babe" debunking)

The following guide was found on io9 via The Last Word on Nothing.

It is easy to stop believing in bull****. After all, bull**** doesn't spread by itself. Someone have to believe the bull**** to pass it on. I've slightly reworded the original

0. Assuming anything any one told you is bull**** unless disproven (by following)
1. Who is telling me "this"?
2. How does s/he know "this"?
3. Given #1 and #2, could s/he be wrong?
4. If yes, maybe, or "I dunno", find UNRELATED source that says the same thing, then apply the SAME TEST  (Go to 1)
5. If you got here, answer to 3 must be "pretty f***ing unlikely". 

Congratulations. You now have something that may not be bull****.


Remember: just because someone says something that "makes sense" doesn't mean it's true.

Let us take a recent example... Vani Hari, i.e. "Food Babe" rant about some chemical that she claims was used to make yoga mats. That's NOT TRUE. The chemical, which makes harmless bubbles, *can also be used* to make yoga matts, which is bubble foam. She knows nothing about science or food safety. She's selling her looks (calling herself "Food Babe", eh) and trying to parlay her followers into spreading misinformation. That is just plain STUPID.

Let's apply the test... Should you believe Food Babe's warning about azodicarbonimide in Subway's sandwich bread?