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Source: Npros.com 4/16/2015

Class-Action Lawsuit Filed Against TelexFree

A class-action lawsuit has been filed against TelexFree Inc., consolidating the complaints of at least 780,000 alleged victims and accusing the company, its principals and top promoters of "knowingly, maliciously, and willfully" conspiring "to perpetrate...the TelexFree pyramid scheme with full awareness of its unfair, deceptive, and unlawful nature." The 200-page complaint names a number of service providers, including banks and accountants, alleging that they "were negligent or reckless in providing advice, directly participated in," or provided "essential substantial assistance" to TelexFree, despite knowing it was conducting an illegal pyramid scheme. Included in the list of service providers named in the lawsuit are Bank of America Corp. and PricewaterhouseCoopers.

The lawsuit alleges that Bank of America and PricewaterhouseCooper continued to do business with TelexFree after learning the company had been shut down in Brazil for conducting a pyramid scheme. According to the complaint, Bank of America questioned TelexFree about its business in spring of 2013 and "had echanges with TelexFree about terminating their relationship and discontinuing the service of their accounts, but never did."

The complaint also alleges that PricewaterhouseCoopers "negligently advised" TelexFree to prepare inaccurate 1099 tax forms to participants who had lost money with the company.

In 2014, Massachusetts Secretary of State William F. Galvin negotiated a $3.5 million settlement with another service provider, Fidelity Bank of Fitchburg, for allegedly allowing TelexFree to open accounts without thoroughly vetting the business.

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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.

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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.

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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

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