Page 3 of 5 FirstFirst 12345 LastLast
Results 51 to 75 of 118
Like Tree75Likes

Thread: TelexFree is scam or not ?

  1. #51
    NikSam is offline AntiCon Artist
    Join Date
    Dec 2012
    Posts
    2,248

    Re: TelexFree is scam or not ?

    From time to time I bring up the cases of cultural differences, perhaps some ponzi pimps will think twice.
    There were plenty of violence and murders against ponzi operatotors / promoters in Russia, Ukraine, Nigeria, India
    even US on a smaller scale.

    So now I can add another country - Peru to the list.
    Some victims of a TelexFree ponzi in Peru kidnapped their upline and demanded ransom (return of their losses)

    Full Story (spanish): Detienen a secuestrador cuando cobraba dinero de extorsión en Juliaca » Policial | Los Andes » Noticias Puno Perú
    Last edited by NikSam; 05-30-2014 at 02:50 PM.

  2. #52
    NikSam is offline AntiCon Artist
    Join Date
    Dec 2012
    Posts
    2,248

    Re: TelexFree is scam or not ?

    What can be worse than jail ? - An angry mob with torches and pitchforks.

  3. #53
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,863

    Re: TelexFree is scam or not ?

    The only thing necessary for the triumph of evil is for good men to do nothing

  4. #54
    kschang is offline Senior Scambuster
    Join Date
    May 2012
    Posts
    866

    Re: TelexFree is scam or not ?

    Quote Originally Posted by NikSam View Post
    Some victims of a TelexFree ponzi in Peru kidnapped their upline and demanded ransom (return of their losses)
    If I read the story right, they slipped up at the bank, and the manager hit the alarm, they fled, and was caught soon after, where they confessed that they're only trying to recover their money.
    ---
    A MLM Skeptic (not a Cynic) covering scams, critical thinking, and psychology
    http://amlmskeptic.blogspot.com

  5. #55
    kschang is offline Senior Scambuster
    Join Date
    May 2012
    Posts
    866

    Re: TelexFree is scam or not ?

    Quote Originally Posted by NikSam View Post
    What can be worse than jail ? - An angry mob with torches and pitchforks.
    GMTA, man, GMTA.

    Clipboard01.jpg
    ---
    A MLM Skeptic (not a Cynic) covering scams, critical thinking, and psychology
    http://amlmskeptic.blogspot.com

  6. #56
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,863

    Re: TelexFree is scam or not ?

    Extracts from Governments' Memorandum in Opposition by USA as to James Matthew Merrill (highlighting and bolding added)

    INTRODUCTION
    James Merrill is the President of a company, TelexFree, Inc., that perpetrated one of the largest pyramid schemes uncovered in recent memory, involving about 1,000,000 investors (“promoters”) in dozens of countries and hundreds of millions of dollars. As the “American face” of TelexFree, Merrill was a minor celebrity to TelexFree promoters the world over, and so enjoys a substantial network of international support, from Canada to the Dominican Republic to Central and South America. These supporters include his close friend of 20 years, co-defendant Carlos Wanzeler, who is now a fugitive in Brazil. The scheme was so large that, if convicted, Merrill faces an advisory Guideline range of life (by about seven levels).
    ARGUMENT
    I. MERRILL WAS THE VERY PUBLIC LEADER OF AN INTERNATIONAL PYRAMID SCHEME INVOLVING SUBSTANTIAL ASSETS OVERSEAS AND THOUSANDS OF SUPPORTERS IN DOZENS OF COUNTRIES

    Until the scheme collapsed (although TelexFree chose to call it “filing for bankruptcy”), Merrill was the leader and public face of a modern, and dangerous, form of the traditional Ponzi scheme. He was the President of TelexFree, Inc., a company that sold a “voice over internet”
    (“VOIP”) product through the use of “multi-level” or “network” marketing. TelexFree was a global success. From its inception in 2012 until its collapse in April 2014, it attracted between 750,000 and 1,000,000 investors worldwide and, according to the company’s admission, took in about $1,000,000,000.
    A. As Its Revenue Reflected, TelexFree Paid Its Investors Even if They Sold Nothing

    But TelexFree was a pyramid scheme. That is, the massive amount of revenue the company received between February 2012 and April 2014 did not come from its VOIP product selling like hotcakes, but from an ongoing influx of investor dollars, which it then paid out in commissions. Becoming a TelexFree “promoter” cost $340 or $1425, depending on the level of buy-in. But once someone signed up they were able, for example, to make a guaranteed 200% to 300% annual return on their investment for doing basically nothing and without selling a single VOIP product. Merrill knew all of this. And, as Merrill’s motion itself illustrates, see Def. Mtn. at 18, the company tried hard to make it look legitimate.
    The details of the TelexFree compensation scheme are easy to confirm –anyone with an Internet connection could read James Merrill’s PowerPoint tutorial about how to get rich with TelexFree. See, e.g., Govt Exh. 1 at 10-12 (“See our opportunity presented by our President James Merrill.”). Following the math for the various interlocking bonuses TelexFree paid, a promoter could make thousands of dollars without ever selling anything.
    Unsurprisingly, as TelexFree’s accounts reflect, over time about 99% of its incoming money was from new investors while about 1% was from VOIP sales. And it was a lot of money. For example, in a single account, active for five months in 2013 and 2014, TelexFree took in $234,705,815. Of that, $425,696 was attributable to VOIP sales. That’s less than .2%.
    See 5/20/14 Trans. at 6-9 (court’s findings on TelexFree compensation and revenue). As the evidence showed at the detention hearing, see, e.g., Govt. Exh. 1, and as Judge Hennessy specifically noted in his findings, 5/20/14 Trans. at 7-9, this ratio was consistent across numerous bank accounts and credit card processing accounts between February 2012 and March 2014.
    For example, every TelexFree promoter who wanted to earn bonuses for recruiting other promoters was required to sell at least one VOIP package. So, many TelexFree promoters simply sold it to themselves, using a different user name, and then collected a 90% commission on the sale, for a net cost to the promoter of $5.00. These are not real customers, but TelexFree’s back office system counts them as such. Meanwhile, every single TelexFree bank and credit card account showed that actual VOIP sales were 1% or so of revenue, but somehow, we are told, all of the missing, legitimate, sales are hiding in the back office – the one revenue source that is not readily reviewable at this stage of the proceedings.
    like many “multi-level marketing” companies, TelexFree has a disturbingly cult-like quality. Egged on by the company itself, promoters spoke of “reaching their dreams” and being “100% TelexFree.” TelexFree’s promoter extravaganzas – in the United States, Brazil and Spain, among other places – were recorded and posted on YouTube. These events had a “boisterous . . . rock concert atmosphere,” at which crowds of promoters cheered James Merrill when he took the stage. See Detention Hearing Transcript (5/16/14) at 15-19 (“5/16/14 Trans.”). Merrill would have the crowd “do the wave.” As the “American face” of TelexFree, crowds of foreign promoters lined up to have their pictures taken with Merrill; his wife conceded that he was “treated like a minor celebrity.” Id. at 42. In or about November 2013, TelexFree rented a cruise ship and invited thousands of promoters to join a cruise off the coast of Brazil. Merrill addressed the crowd of (at least) hundreds from the promenade deck, helicopter hovering in the background. Id. 43-44; 5/20/14 Trans. at 11-12 (court’s findings).
    thousands of these promoters do not live in the United States, but in Canada, the Caribbean, and Central and South America. See 5/16/14 Trans. at 15; 5/20/14 Trans. at 9 (court’s findings). Thousands remain fanatically loyal to the company which, despite the bankruptcy and three government enforcement actions, they see as helping hard working people make a little money on the side. See 5/16/14 Trans. at 18-19; Govt Exh. 2 (binder of hundreds of letters of support for TelexFree, submitted by promoters worldwide in the SEC civil action). Many TelexFree promoters, at least the earlier ones, made substantial sums from their involvement.
    One witness has described the two men as “like brothers.” According to bank records, in February 2013, Wanzeler gave Merrill a check for $865,000, using funds drawn from TelexFree’s Brazilian operations. In December 2013 – around the time he withdrew $3,000,000 for himself – Merrill authorized the transfer of about $7,000,000 to Wanzeler from TelexFree accounts. The real risk here is not Merrill fleeing to Brazil, but Wanzeler helping him from that location.
    TelexFree has substantial assets overseas. The government has managed to freeze millions of dollars in United Kingdom and Singapore accounts, but various accounts remain unfrozen. There is a TelexFree account in Cayman with the Royal Bank of Canada. It remains unfrozen and the account balance is unknown. Similarly, the government has seized a $10,000,000 cashiers’ check made out to TelexFree Dominicana SRL – TelexFree’s Dominican entity – but no Dominican accounts are frozen. Finally, in or about 2013 Merrill and Wanzeler traveled to Singapore, where we know there are three accounts in the names of TelexFree and Carlos Wanzeler. One of these accounts is frozen, but not the other two.
    Merrill is over 50 years old. He potentially faces life in prison or, even if something substantially less, still a sentence that may keep him imprisoned into his senior years. Facing this kind of personal disaster, in light of available refuge elsewhere in the United States and overseas, bond is not reasonably likely to keep him here.
    The only thing necessary for the triumph of evil is for good men to do nothing

  7. #57
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,863

    Re: TelexFree is scam or not ?

    The only thing necessary for the triumph of evil is for good men to do nothing

  8. #58
    EagleOne's Avatar
    EagleOne is offline Elite Scambuster
    Join Date
    Jun 2010
    Posts
    3,677

    Re: TelexFree is scam or not ?

    Well, TelexFree people are not going to be happy with this news like they claimed they were when they were in support of a Trustee being appointed. Of course their reason for being happy then was they thought they were going to get Stuart McMillan appointed as Trustee. They were truly delusional if they thought that was going to happen.

    Maybe now the faithful will finally wake up and realize what a huge Ponzi scheme this truly was, and they all got taken. Well, except for the major winners that is. Clawbacks are going to be a blast.
    EagleOne
    Founder/President Eagle Research Associates
    http://eagleresearchassociates.org
    http://swindles.org
    Author: "Robbing You With A Keyboard Instead Of A Gun - Cyber Crime How They Do It" available in soft cover and eBook at Amazon.com
    Lifetime Member of the National Association of Distinguished Professionals

  9. #59
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,863

    Re: TelexFree is scam or not ?

    Things are hotting up in Telexfreeland.

    STEPHEN B. DARR, Telexfees' chapter 11 bankruptcy trustee:

    respectfully moves for the entry of an order authorizing the Trustee to issue a subpoena upon and obtain all Documents as defined in Exhibit “A”,relating to the Debtors from the law firm Greenberg Traurig, LLP (“Greenberg”), co-counsel to the Debtors"
    respectfully moves for the entry of an order authorizing the Trustee to issue a subpoena upon andto obtain Documents, as defined in Exhibit “A” hereto,relating to the Debtors from the law firm Gordon Silver (“Gordon”), co-counsel to the Debtors
    respectfully moves for the entry of an order authorizing the Trustee to issue a subpoena upon and to obtain Documents, as defined in Exhibit “A”,relating to the Debtor from Kurtzman Carson Consultants, LLC (“KCC”),the Debtors’ claims and noticing agent
    Darr is also requesting he be allowed to obtain:



    Notable is the Trustees' request for:




    One gets the distinct impression Stephen B Darr ain't messin' around.
    The only thing necessary for the triumph of evil is for good men to do nothing

  10. #60
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,863

    Re: TelexFree is scam or not ?

    Mass. Commonwealth Security Division Administrative Complaint:



    Can be viewed in full online courtesy of ASDUpdates files or downloaded in .pdf format from ASDUpdates files
    The only thing necessary for the triumph of evil is for good men to do nothing

  11. #61
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,863

    Re: TelexFree is scam or not ?

    It appears Steve Labriola is singing out of the same hymn book as Faith Sloan by crying poverty and says he wants to move on to a new "job"





    You can view the original
    proposed order modifying consent order on the ASD Updates files website
    The only thing necessary for the triumph of evil is for good men to do nothing

  12. #62
    ribshaw's Avatar
    ribshaw is offline Nigerian Ministry
    Join Date
    Feb 2013
    Location
    Internet Cafe Nigeria
    Posts
    4,947

    Re: TelexFree is scam or not ?

    Quote Originally Posted by littleroundman View Post
    [B]It appears Steve Labriola is singing out of the same hymn book as Faith Sloan by crying poverty and says he wants to move on to a new "job"

    What is it with the Ponzi/HYIP/MLM community? Setting aside the illegality and improbability of success in these schemes, all these "leaders" are broke, or at least crying poor-mouth.
    "It's virtually impossible to violate rules ... but it's impossible for a violation to go undetected, certainly not for a considerable period of time." Bernie Madoff
    https://www.facebook.com/pages/Scam-...98399986981403

  13. #63
    Whip's Avatar
    Whip is offline Anonymous. As are you all
    Join Date
    Jun 2010
    Posts
    5,811

    Re: TelexFree is scam or not ?

    but they are also all liars.

  14. #64
    ribshaw's Avatar
    ribshaw is offline Nigerian Ministry
    Join Date
    Feb 2013
    Location
    Internet Cafe Nigeria
    Posts
    4,947

    Re: TelexFree is scam or not ?

    Quote Originally Posted by Whip View Post
    but they are also all liars.
    People lying on the internet and in hotel conference rooms lying about money, that must be a recent development.
    "It's virtually impossible to violate rules ... but it's impossible for a violation to go undetected, certainly not for a considerable period of time." Bernie Madoff
    https://www.facebook.com/pages/Scam-...98399986981403

  15. #65
    Whip's Avatar
    Whip is offline Anonymous. As are you all
    Join Date
    Jun 2010
    Posts
    5,811

    Re: TelexFree is scam or not ?

    merely rumor at this point if you listen to them.

  16. #66
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,863

    Re: TelexFree is scam or not ?

    Quote Originally Posted by ribshaw View Post
    What is it with the Ponzi/HYIP/MLM community? Setting aside the illegality and improbability of success in these schemes, all these "leaders" are broke, or at least crying poor-mouth.
    At this point in the proceedings, I don't think boasting about how much money they've got or made would be the smartest thing they could do.
    The only thing necessary for the triumph of evil is for good men to do nothing

  17. #67
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,863

    Re: TelexFree is scam or not ?

    The Spanish newspaper, El Pais Politica is today reporting:

    A pyramid of greed

    50,000 Spanish investors have lost their savings in TelexFree

    You can read a Google Translate of the article
    HERE
    The only thing necessary for the triumph of evil is for good men to do nothing

  18. #68
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,863

    Re: Zeek Rewards !! How to get to $3K a month, starting as a free member !

    Court Docket: #0342
    Document Name: Endorsed Order re: Motion by Stephen B. Darr, Chapter 11 Trustee, to Conduct Rule 2004 Examinations of Global Payroll Gateway, Inc., International Payout Systems, Inc., Propay Inc.,Propay.com, Argus Payments, and Allied Wallet (Expedited Determination Requested)

    Court Docket: #0341
    Document Name: Endorsed Order re: Motion to Approve Stipulated Order Respecting Motion of Stephen B. Darr, Chapter 11 Trustee, to Conduct Rule 2004 Examination of International Payout Systems, Inc.,

    Court Docket: #0339

    Document Name: Endorsed Order re: Motion by Stephen B. Darr, Chapter 11 Trustee, to Conduct Rule 2004 Examination of Joele Frank, Wilkinson, Brimmer, Katcher (Expedited Determination Requested)

    Court Docket: #0338
    Document Name: Endorsed Order re: Motion by Stephen B. Darr, Chapter 11 Trustee, to Conduct Rule 2004 Examination of Gerald P. Nehra and the Law Offices of Nehra & Waak (Expedited Determination Requested)

    Court Docket: #0337
    Document Name: Endorsed Order re: Motion by Stephen B. Darr, Chapter 11 Trustee, to Conduct Rule 2004 Examination of The Sheffield Group (Expedited Determination Requested)

    Court Docket: #0336
    Document Name: Endorsed Order re: Motion by Stephen B. Darr, Chapter 11 Trustee, to Conduct Rule 2004 Examination of Lane Powell Prof. Corp. (Expedited Determination Requested)

    Court Docket: #0335
    Document Name: Endorsed Order re: Motion by Stephen B. Darr, Chapter 11 Trustee, to Conduct Rule 2004 Examination of Garvey Schubert Barer (Expedited Determination Requested)

    Court Docket: #0334
    Document Name: Endorsed Order re: Motion by Stephen B. Darr, Chapter 11 Trustee, to Conduct Rule 2004 Examination of Babener & Associates (Expedited Determination Requested)


    Rule 2004 examination - an extended examination of any person pursuant to Federal Rule of Bankruptcy Procedure 2004 regarding one or more aspects of a debtor’s financial affairs. A Rule 2004 examination is similar to a deposition in non-bankruptcy proceedings.
    kccllc.net






    The only thing necessary for the triumph of evil is for good men to do nothing

  19. #69
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,863

    Re: TelexFree is scam or not ?

    An interesting court filing was released today:

    Answer by Stephen Darr as trustee of the Chapter 11 estate of Telexfree Inc, Telexfree LLC and Telexfree Financial Inc

    Highlights:






    Defendants
    11. Based on the information currently available to the Trustee, the Trustee admits the allegations contained in paragraph 11.
    12. Based on the information currently available to the Trustee, the Trustee admits the allegations contained in paragraph 12.
    13. Based on the information currently available to the Trustee, the Trustee admits the allegations contained in paragraph 13.
    14. Based on the information currently available to the Trustee, the Trustee admits the allegations contained in paragraph 14.
    15. Based on the information currently available to the Trustee, the Trustee admits the allegations contained in paragraph 15.
    16. Based on the information currently available to the Trustee, he admits the allegations contained in paragraph 16.
    17. Based on the information currently available to the Trustee, the Trustee admits the allegations contained in paragraph 17.
    18. Based on the information currently available to the Trustee, the Trustee admits the allegations contained in paragraph 18.
    19. Based on the information currently available to the Trustee, the Trustee admits the allegations contained in paragraph 19.

    Relief Defendants
    20. Based on the information currently available to the Trustee, the Trustee admits the allegations contained in paragraph 20.
    21. Based on the information currently available to the Trustee, the Trustee admits the allegations contained in paragraph 21.
    22. Based on the information currently available to the Trustee, the Trustee admits the allegations contained in paragraph 22.
    So, the receiver has no intention of rebooting Telexfree, despite what its' supporters may say and despite what the Telexfree pimps are claiming, and admits Telexfree was a ponzi or pyramid scheme

    The receiver admits the bulk of allegations against JAMES M. MERRILL, CARLOS N. WANZELER, STEVEN M. LABRIOLA, JOSEPH H. CRAFT, SANDERLEY RODRIGUES DE VASCONCELOS, SANTIAGO DE LA ROSA, RANDY N. CROSBY and FAITH R. SLOAN, are, in his opinion, substantially correct given the short time he has been "inside" Telexfree

    Court filing provided by courtesy of ASD Files website
    The only thing necessary for the triumph of evil is for good men to do nothing

  20. #70
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,863

    Re: TelexFree is scam or not ?

    In a further development, the SEC today filed a PLAINTIFF'S OPPOSITION TO DEFENDANT RODRIGUES'S MOTION TO DISMISS in response to Sann Rodrigues' motion to dismiss all charges

    Here's part of the SECs' response:

    The only thing necessary for the triumph of evil is for good men to do nothing

  21. #71
    Whip's Avatar
    Whip is offline Anonymous. As are you all
    Join Date
    Jun 2010
    Posts
    5,811

    Re: TelexFree is scam or not ?

    They're tryin' hard to keep nehra all the way under that bus.

  22. #72
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,863

    Re: TelexFree is scam or not ?

    James Merrill and Carlos Wanzeler have today each been indicted on one count of conspiracy to commit wire fraud and eight counts of wire fraud:









    Read the FULL INDICTMENT courtesy of ASDUpdates files
    The only thing necessary for the triumph of evil is for good men to do nothing

  23. #73
    EagleOne's Avatar
    EagleOne is offline Elite Scambuster
    Join Date
    Jun 2010
    Posts
    3,677

    Re: TelexFree is scam or not ?

    EagleOne
    Founder/President Eagle Research Associates
    http://eagleresearchassociates.org
    http://swindles.org
    Author: "Robbing You With A Keyboard Instead Of A Gun - Cyber Crime How They Do It" available in soft cover and eBook at Amazon.com
    Lifetime Member of the National Association of Distinguished Professionals

  24. #74
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,863

    Re: TelexFree is scam or not ?

    The only thing necessary for the triumph of evil is for good men to do nothing

  25. #75
    littleroundman is offline Administrator
    Join Date
    Jun 2010
    Posts
    16,863

    Re: TelexFree is scam or not ?

    Some revealing highlights (lowlights) from the indictment:
















    The only thing necessary for the triumph of evil is for good men to do nothing

Page 3 of 5 FirstFirst 12345 LastLast

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Disclaimer: Opinions expressed on this website are solely those of their respective authors.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42