Source: 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... 

  • 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 ... 

  • 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...


TelexFree News Archive

New Companies on Npros

Receive News and
Updates from

 Send me news updates
 Send me New Companies

RSS Npros News Feed