Recent Stories

Court Upholds Huge Damages Verdict Against ViSalus
August 20, 2020 -- A federal judge recently upheld a $925 million judgement determined by a jury in April 2019 in a clas...8/20/2020

Kristi Hubbard Appointed Younique President
LEHI, Utah, July 8, 2020 -- Kristi Hubbard, a direct-selling executive leader with a strong record of success, has been ...7/10/2020

FTC Sends Warning Letters About False Health Claims
April 24, 2020 - The Federal Trade Commission sent letters warning 10 MLM companies to stop making claims about their pr...4/29/2020

Altair Acquisitions Acquires Wildtree
FRISCO, Texas, April 27, 2020 -- Altair Acquisitions, LLC ("Altair") announced today that it has acquired all of the mat...4/29/2020

Pampered Chef Partners with the American Cancer Society to Support Front-Line Workers
Pampered Chef and the American Cancer Society have announced they are partnering to support free temporary housing for f...4/29/2020

Source: Npros 4/18/2014

38M in Checks Recovered as CFO Flees TelexFree

Marlborough, MA, April 18, 2014 -- The chief financial officer of TelexFree, Joseph H. Craft, was stopped by a deputy sherriff as he attempted to leave during federal agents' search of TelexFree's offices this week. Craft told the deputy he was only a consultant assisting TelexFree with its bankruptcy filing. Craft was carrying a laptop and a bag containing nearly $38 million in cashier's checks made out to various company principals and TelexFree entities.

The SEC received approval from a Federal judge to freeze the assets of TelexFree and 8 principals and associates of the company. The SEC's civil complaint names TelexFree owners, James M. Merrill, Katia B. Wanzeler and Carlos N. Wanzeler, as well as four of the company's top representatives: Steven M. Labriola, Santiago De La Rosa, Randy N. Crosby, and Faith R. Sloan. It also names Sanderley Rodrigues de Vasconcelos, who was sanctioned by federal securities regulators in 2006 for defrauding consumers through a prepaid phone card company called FoneClub.

The SEC alleges that TelexFree's financial records showed that it has transferred $30 million to the principals and affiliated companies since November 2013, and tens of millions more in customer funds are unaccounted for.

TelexFree's lawyer has not responded for requests for comment.

View TelexFree Review

Related News

TelexFree President Sentenced

James Merrill, former president of TelexFree, was sentenced on March 22 to six years in prison and three years of probation. Merrill pleaded guilty last October to one count of wire fraud conspiracy and eight counts of wire fraud.

Merrill founded TelexFree with business partner Carlos Wanzel... Read More...

Agents Seize Approximately 20 Million in Scheme to Launder TelexFree Funds

January 26, 2017(Boston)--Approximately $20 million in cash hidden inside a box spring in a Westborough, Massachusetts, apartment was seized late yesterday, and a Brazilian man was arrested in connection with conspiring to launder proceeds of the massive TelexFree pyramid scheme.

Cleber Rene ... Read More...

TelexFree President Pleads Guilty

Worcester, MA - October 25, 2016 -- James Merrill, president of TelexFree, pleaded guilty to one count of wire fraud conspiracy and eight counts of wire fraud in U.S. District Court. Prosecutors called TelexFree one of the largest Ponzi schemes in history, with nearly 1 million people losing close ... Read More...

TelexFree Exec Requests Suppression of Evidence

An attorney for James Merrill has requested suppression of evidence seized during a raid of TelexFree's offices in April 2014. In a court filing, Robert Goldstein said the document seizure was "unconstitutionally overbroad" and that his client "respectfully submits that all evidence seized pursuant... Read More...