Wanzeler and Merrill were charged Wednesday with a nine-count indictment in U.S. District Court in Worcester, Mass.
TelexFree, which promoted Internet phone services to its customers, was operating as a pyramid scheme according to the federal indictment.
The indictment includes eight counts of wire fraud, and seeks $140 million seized from TelexFree's account and other assets forfeited by the owners. The indictment also claims Merrill wired over $10 million in company funds to personal accounts controlled by himself and Wanzeler.
Each count carries a maximum sentence of 20 years.
Merrill is currently released on bail, however Wanzeler is at large and considered a fugitive from justice.
