WSJ: T. LeMont Silver Blames Everyone But Himself for Being Sued as "Net Winner" in Zeek

Wall Street Journal article, published 2014-DEC-03 specifically named T. LeMont Silver, a Zeek "net winner" (i.e. he got more than he put in while others lost money), and serial Ponzi participant, as someone who admits he's an idiot, yet blames everybody except himself.

In the WSJ article SEC on Lookout for Web-Based Pyramid Schemes by Jean Eaglesham, it specifically named GoFunPlaces (and its parent eAdGear) as a scam shut down by the SEC.

At the end, Mr. T. LeMont Silver Sr. was mentioned by name, where the author wrote:

"Mr. Silver said he is a marketer with little knowledge of the business operations of the companies he promotes"

Yet he wants you to join him in making money.

Tsk, tsk, tsk...

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:

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

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 4/30/2014: Sann Rodrigues invokes God, Santiago De La Rosa ordered to sell bling cars

Not too many news items, as everyone is waiting for the huge court date of May 2nd...

Sann Rodrigues invokes God, vows "I am never going to stop this [TelexFree?]"

According to the SEC, in court documents recently filed, they found Sann Rodrigues uploaded a video to Youtube on April 16th, the day of the SEC/ FBI / HSI / ICE / who knows what else raid on TelexFree. In the video, Sann Rodrigues announced:

I am never going to stop this. If I say to my network I will never stop this because it is in blood, DNA. And who started multi-level was God. If you want to learn, learn. If you want to frown, frown. God made binary, Adam and Eve, and told them to multiply. For me, it is given by God.

It was pretty obvious that Sann Rodrigues was referring to TelexFree (that he will never stop doing TelexFree).

So being a scammer is in his blood, hmmm? Please keep in mind this is NOT Sann Rodrigues's first time being investigated by SEC. Back in 2007 SEC busted him for operating "Universo FoneClub" that charged over 1000 dollars for an opportunity to sell phone cards, but people actually made money recruiting other people.

Back then, he claimed that God wanted Brazilians to prosper and Universo FoneClub was the way. Now he claimed God invented binary. It's clear that he's recycling his old recruiting talk and he really isn't going to change... Much like Kevin Trudeau (who recently got 10 years jail sentence).

Recall that the only one who really prospered is himself. He's the one showing off fancy Ferraris on TV and a mansion in Florida. And he's not shy showing it off. See for yourself:

Sann Rodrigues on Vimeo, self-proclaimed millionaire through TelexFree, showing off his assets
vows to never stop (what? cheating other people? first through Universo FoneClub, then TelexFree?)

Which brings us to one of his co-conspirators, also charged by the SEC, Santiago de la Rosa.

TelexFree News Update, April 24, 2014: Claim process starts (DO NOT FILE YET!), more investigation in Dominican Republic, and more legal motions

A flurry of news for past 24 hours, but all of them small. Here's the summary:

TelexFree Bankruptcy will Continue in Nevada for Now, Claim Deadline Set

Bankruptcy judge in Nevada has allowed the bankruptcy proceedings to continue for now (on an interim basis), with another court date for May 2nd among the parties such as TelexFree, SEC, and US Trustees. KCC has been appointed interim claims and noticing agent to handle paperwork. 

As a result of this appointment, court also has set tentative dates, including a "341 Meeting" (named for the bankruptcy law section) for May 22nd, and claim deadline of August 20.  The debtors will be present and if you are a creditor, there may be an opportunity to question the principles of TelexFree. 

The "341 Meeting" will take place May 22, 2014 at 3:00 P.M. in the Jury Assembly Room of the Lloyd D. George U.S. Courthouse in Las Vegas, Nevada

Any and all claims *must* be filed with the claim agent. Absolutely DO NOT file the claim with the court itself.  Jordan "Ponzitracker" Maglich will have a guide on how to fill out the claim and where to send it and it will be linked from here when it is published. You can wait a few days!

See http://www.ponzitracker.com/main/2014/4/24/claim-deadline-set-for-victims-in-telexfree-bankruptcy.html


ANALYSIS: Do not file any claims yet. Wait until after May 2nd at least. You don't even know if the claims will be staying in Nevada just yet. By then a guide to fill out the claim will be published.


TelexFree and SEC file a flurry of motions and briefs

TelexFree is arguing that bankruptcy would trump some parts of the TRO. This will be decided in Nevada court on May 2nd.   (SEC asked for April 30th, but judge took TelexFree's side and gave both May 2nd).

SEC's arguing that the case belongs in Massachussetts, where the creditors and the principal all reside. This will be heard on May 2nd.

The individual defenders, such as Labriola, Crosby, and so on have entered their own motions to fight the TRO. On Friday, April 25th, court in Massachussetts will decide whether the TRO will be made permanent.

You can read a full list of motions and order on BehindMLM.com

See: http://behindmlm.com/companies/telexfree/telexfree-court-status-24th-april-2014

ANALYSIS: May 2nd seem to be the big day. Wait until then.

Dominican Republic Authorities Expand TelexFree investigation

Dominican authorities, including anti-money laundering unit, National Prosecutor, and Superintendency of Securities, will coordinate efforts to trace the money of victims in Dominican Republic, which is believed to be tens of millions of pesos. They promised to track down the top promoters and find out where the money went, and if it did indeed left the country, will seek US help to retrieve the money. 

See http://www.dominicantoday.com/dr/local/2014/4/22/51221/Dominican-agencies-probe-TelexFree-ponzi-scheme

TelexFree Update: SEC will intervene in bankruptcy, telecom licenses in jeopardy, victims may be trolled for reload scams

Every day the scope of TelexFree scam seem to expand, and getting more complex, as different people search for ways to cope with the situation, whether they are victims, or "leaders" who lead victims, or worse. Here are some choice updates.

TelexFree owners paid themselves and more millions with participant money

TelexFree, according to SEC, only sold $1.3 million dollars worth of VOIP over 2 years that it operated. However, its owners passed out checks worth much more in the last six months. Here's some highlights, according to SEC's forensic accountant:

Albers [SEC forensic accountant] said TelexFree transferred a total of $3.1 million to Merrill Dec. 26 [2013] and the following day. Over those same two days, the company moved $7.3 million to Wanzeler, who wired half that amount to a Chinese bank in Singapore a week later, Albers said in court documents. 

There’s lots more: TelexFree sent more than $2 million to companies controlled by chief financial officer Joseph Craft between last November and March of this year. He was in the office when FBI agents raided the company, and he tried to walk out the door with $38 million in cashier’s checks. Among those checks: one made out to Wanzeler’s wife for another $2 million.

Now consider this simple question: if they sold only $1.3 million worth of VOIP over 2 years, where did all that $7.3 mil, $3.1 mil, $2 mil, and $38 mil come from?



Nevada Attorney General will "Intervene" in TelexFree's telecom approval

According to documents spotted by PatrickPretty.com, Nevada Attorney General / Consumer Protection Bureau has filed "intent to intervene" in regard of TelexFree licensing issues with the Nevada Public Utilities Commission.

This appears to be in reaction to the Joe Isaacs / ISG Telecom letter apparently sent to all 50 states (and DC) that he was lied by TelexFree to and the information submitted to various commission to "prove" TelexFree is a viable company, many of which were "submitted under seal" and thus not for public review, may be utter fabrications.

What that really means is Nevada AG wants to throw out the entire application for telecom license to operate in Nevada in light of the new information, such as TelexFree's bankruptcy and charges by SEC and Massachusetts SecState of being a huge Ponzi scheme.

Expect other states to follow in the next few days. TelexFree should have all of its telecom license invalidated within a few weeks. They were likely fraudulently obtained through filing of false information.


Also see BehindMLM: TelexFree communications registrations in jeopardy?

But wait, there's more!

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: iPayout Cuts off TelexFree eWallet, and TelexFree "office" closed in Dominican Republic

iPayout, upon warning by Massachusetts Attorney General, has apparently pulled the plug on TelexFree's eWallet, despite previously claiming that it had only few months ago checked out TelexFree and sees nothing wrong.

In other news, Dominican Republic is in an uproar when TelexFree's "local office" locked its doors. It is estimated that 150000 people may have joined.

BREAKING NEWS: TelexFree being investigated as financial fraud by Dominican Republic

Dominican News "Listin Diario" report that Dominican Republic's Securities Division has launched an investigation against TelexFree as a money laundering fraud

http://translate.google.com/translate?hl=en&sl=es&tl=en&u=http%3A%2F%2Fwww.listindiario.com.do%2Fla-republica%2F2014%2F4%2F15%2F318457%2FFiscalia-abre-investigacion-sobre-empresa-Telexfree-acusada-de-lavado-de