TelexFree Scam Investigation
On Wednesday, July 23rd, 2014, TelexFree Incorporated owners James Merrill and Carlos Wanzeler, were charged with running a Pyramid Scheme, and the TelexFree Scam Investigation is underway as we speak. Business operations are currently suspended.
On April 13, 2014, TelexFree filed for protection under Chapter 11 Bankruptcy. Under Chapter 11, a company is given the chance to stay in operation and attempt to pay off its debts. (Under Chapter 7 Bankruptcy, a company is no longer allowed to operate, and goes completely out of business).
TelexFree is/was a communications company-TelexFree VOIP. VOlP stands for “Voice Over Internet Protocol.” In simpler terms, it means phone service over the Internet. Some people prefer to have their phone service delivered via their Internet connection instead of just using their regular phone company.
What’s So Wrong With TelexFree?
TelexFree is what’s known as a combined Ponzi and Pyramid Scheme. A Ponzi Scheme is an illegal investing scam that promises high rates of earning money back with little risk to the investors. This scheme makes money for the older investors when they acquire new investors. Ponzi Schemes usually collapse like a house of cards when the new investments stop.
TelexFree is also known as a Pyramid Scheme. The Pyramid Scheme operates under a business disguise that promises payment to people if they can enroll others into the same business (scam). A Pyramid Scheme doesn’t offer anything of real value, it just gets other people to sign up beneath the first people who joined.
The Charges Against the TelexFree Owners
James Merrill and Carlos Wanzeler have been charged with nine counts of wire fraud and conspiracy. Each man faces up to 20 years in prison if found guilty of fraud. The legal documents allegedly state that the alleged victims may get their money back or paid through assets if the owners are found guilty.
Massachusetts Commonwealth Secretary William Galvin’s investigators have alleged that TelexFree is a combined Ponzi and Pyramid Scheme. This happened approximately on April 15th, 2014. Mr. Galvin also alleged that TelexFree has cost Massachusetts residents $90 million dollars or more. Note: Massachusetts is not the only state hurt by this company. TelexFree has also scammed other states and areas of the world.
For further reading, you can visit “The Boston Globe,” for more details on this investigation.
TelexFree has posted a page on the Internet to TelexFree Customers and Sales Associates. You can read it by Clicking Here.
Be cautious about what company you do business with. TelexFree Incorporated is one of many examples of what I call the “Internet Sharks” online.
Please leave any questions or comments below. I would love to hear your thoughts on this story.
Thanks for reading.