Tuesday, April 15, 2014

BREAKING NEWS: WCM777 receiver caught participant "losing" $200000 cashiers check, and more

As MLM Skeptic have said before, the more we dig, the more strange things we find about WCM777. We found links to immigration investment (i.e. residency visa for fixed prices), links to churches and controversial entities, sound-alike entities to schools, and more.

It appears that the WCM receiver appointed by court to close this ponzi scheme has found even more, with entities like WCM Art, and Immigrant Investment

What's interesting is the "inhouse legal counsel" Vincent Messina apparently got a 5 million loan a month before the SEC freeze hit and he had already spent half of it. Messina apparently refused to return the money and the receiver had to summon help to force the proceeds into an escrow account, but there's 200000 missing. Messina claimed the check was "lost".  Judge has ordered a hearing.

Please read details at PatrickPretty.com, and the update, also on PatrickPretty.com



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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

BREAKING NEWS: Uganda called TelexFree "unregulated and unlicensed financial scheme"

Bank of Uganda at a conference named TelexFree and some fraudulent Forex operators as "unregulated and unlicensed financial schemes" that prey upon the poor and the uneducated.

http://pctechmag.com/2014/04/telexfree-not-regulated-by-government-says-bank-of-uganda/
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BREAKING NEWS: Massachusetts formally charged TelexFree with being a 1 BILLION dollar fraud (UPDATED)

It's now official: US Government has acted on TelexFree, a long suspected fraud. Commonwealth (state) of Massachusetts, home of TelexFree, has charged TelexFree of being a 1.2 billion dollar fraud (90 million in Massachusetts alone), and also stated that the company is declaring a bankruptcy to PREVENT the authorities from securing victim's money.

“They clearly are responding to the fact that an investigation was underway,’’ Galvin said in an interview. “Now the thing is to act promptly and get whatever we can for these people.’’

http://www.bostonglobe.com/business/2014/04/15/secretary-galvin-charges-marlborough-phone-service-company-with-million-fraud/RSaSTWvJpnOjo8Ryh8stpN/story.html

Jordon "Ponzitracker" Maglich has covered this in Forbes:

http://www.forbes.com/sites/jordanmaglich/2014/04/15/massachusetts-regulators-allege-telexfree-is-1-billion-ponzi-scheme/

Expect Massachusetts lawyers filing complaint with Nevada to stop the bankruptcy filing at once, and a more formal cease, desist, and account freeze put in its place instead.

Stay tuned, folks. This will get ugly FAST. Expect the Feds to jump in any second.

P.S. News has already reached Brazil

http://translate.google.com/translate?hl=en&sl=auto&tl=en&u=http%3A%2F%2Feconomia.ig.com.br%2F2014-04-15%2Ftelexfree-e-piramide-diz-autoridade-dos-eua.html

Editor's note: Updated with the correct figure, previously the newspaper quoted only 90 million.


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Monday, April 14, 2014

BREAKING NEWS: TelexFree Declares Bankruptcy, then was REJECTED

Bankrupt
Bankrupt (Photo credit: LendingMemo)
Yes, you heard right: TelexFree (US) tried to declare Chapter 11 bankruptcy and reorganization.

Then was rejected for filing an incomplete application.

On Sunday, 13-APR-2014, Press Release started appearing all of the US through PRNewsWire, which linked to this document :

http://www.kccllc.net/telexfree/document/1412524140413000000000001

Appears to be official, and contains a list of creditors owned money to.

According to some comments, (unverified) the top creditors to the bankrupt TelexFree are Carlos Costa's wife and nephew (1.34 mil and 0.96 mil USD respectively). Carlos Costas is head of TelexFree in Brazil.

Document only lists the top 30 creditors, there are obviously much much more.

Saturday, April 12, 2014

BREAKING NEWS: Department of Justice and Federal Bureau of Investigations (DOJ and FBI) are investigating Herbalife

According to an Federal official, and reported by multiple sources such as Financial Times and Los Angeles Times, FBI and DOJ had opened a criminal investigation into Herbalife several MONTHS ago, before FTC announced their own investigation.

With SEC and FTC also investigating the company, this may be bad news for Herbalife.

See LA Times Link: http://www.latimes.com/business/la-fi-herbalife-fbi-20140412,0,5064592.story

Wednesday, April 9, 2014

Who Really Decides What Is Safe In your Food (and Nutritional Supplements)?

English: Logo of the .
English: Logo of the . (Photo credit: Wikipedia)
Obvious fact:  nutritional supplements are considered "food" by the Food and Drug Administration (FDA).

Not so obvious fact: what ends up in the nutritional supplements are often UNregulated
by the FDA, because companies can simply declare some ingredient to be "generally regarded as safe" (GRAS) based on some internal studies, and include them without telling the FDA.

Some ingredients are submitted to FDA with full studies and gains full FDA approval, but most ingredients are not approved by the FDA, and are merely declared to be GRAS by internal studies. A third way, where the GRAS study was submitted to FDA for approval, are often withdrawn, and the ingredient used any way.

GRAS was meant to be used for common ingredients like vegetable oil, vinegar, and so on. But the law, enjoying its 56th birthday recently, is now an anachronism and a loophole for companies to punch through ingredients without formal review by the FDA.

National Resource Defense Council has published a paper where it tracked 56 companies involved in 250+ chemicals declared as GRAS, as reported by Consumerist. Some of which are... troubling. And you need to be aware if you are drinking or taking any weight-loss or energy formulas.