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 5/10/2014

TelexFree Owner Arrested

May 10, 2014 -- The owners of TelexFree were criminally charged in federal court Friday with conspiracy to commit wire fraud. James Merrill was arrested Friday afternoon in Worcester, MA. An arrest warrant was also issued for Carlos Wanzeler, who is believed to have fled to Brazil and is now considered a fugitive.

The US Securities and Exchange Commission and Massachusetts Secretary of State are investigating TelexFree. The company's assets have been frozen by the SEC, which filed a civil suit against it in April, accusing it of operating a pyramid scheme. Authorities say that TelexFree recruited "promoters" to buy into the company for about $300 to $1,400, then post ads for its Voice Over IP product online. Promoters were compensated not with money generated by the ads, but from the buy-ins of those subsequently recruited.

An undercover Homeland Security investigator who was recruited by TelexFree in October was told that by a company representative that it wasn't necessary to sell products to earn money and that with a $1425 investment the agent could earn $100 a week without selling any product, by posting ads online and recruiting others.

In court records, authorities said that a review of TelexFree's bank accounts revealed that out of thousands of deposits, only 19 were related to sales of the company's VOIP service.

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...