Trustee Appointed for TelexFREE, Class Action Lawsuits Filed
Meanwhile, three class-action lawsuits seeking in excess of $10 billion have been filed against TelexFREE on behalf of plaintiffs in North Carolina, Massachusetts, and Nevada.
The Securities and Exchange Commission and the Massachusetts Secretary of State have both charged TelexFREE with securities fraud. One of the company's co-owners, James Merrill, is being held in federal custody, while the other, Carlos Wanzeler, has fled to Brazil. Merrill is petitioning the court to allow home detention at his Massachusetts home under conditions including surrender of his and his wife's passports, GPS monitoring, and payment of a $900,000 personal recognizance bond. Prosecutors have said Merrill is a flight risk. Merrill's attorney pointed out that despite being aware of the government's criminal investigation, Merrill did not take the opportunity to flee to avoid prosecution, unlike his co-defendant.
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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...
