James Merrill, co-owner of TelexFree Inc., was denied bail by a federal judge in Worcester, MA, pending trial for allegedly committing fraud and operating a pyramid scheme.

Prosecutors said Merrill has access to hundreds of millions of dollars in accounts around the world and motivation to flee because, at age 53, he could in effect be facing life in prison. Merrill's lawyer argued he was not a flight risk and planned to appeal.

Merrill's partner, Carlos Wanzeler, fled to Brazil and is considered a fugitive. Wanzeler's wife, Katia, who was arrested as she tried to leave the country last week, has been released.