What is TelexFree?
Telexfree (stylized as TelexFREE), a trade name owned by Telexfree Inc., was a multibillion-dollar Ponzi scheme disguised as an internet phone service company.
How did TelexFree work?
While TelexFree was ostensibly in the business of selling an internet phone service allowing free calls to Brazil and Latin America, participants were not expected to sell the product itself. Instead, they would spend their own money to buy ads for the service.
What are warning signs of pyramid schemes?
Warning signs of a pyramid scheme
- you are approached for a ‘business opportunity’ rather than the product.
- you are asked to pay to join.
- you have to pay for expensive sales aids and training seminars.
- you earn commission for selling training later on.
How do you know if its a pyramid scheme?
These are some of the hallmarks of a pyramid scheme:
- Emphasis on recruiting.
- No genuine product or service is sold.
- Promises of high returns in a short time period.
- Easy money or passive income.
- No demonstrated revenue from retail sales.
- Complex commission structure.
Can I trust a pyramid scheme?
Pyramid schemes are doomed to fail because their success depends on the ability to recruit more and more investors. Since there are only a limited number of people in a given community, all pyramid schemes will ultimately collapse. The only people who make money are those few who are on the top of the pyramid.
How do you say no to a pyramid scheme?
You don’t owe an explanation, you can say, “no, thanks, I’m not interested – and I’m not going to be interested, so you don’t need to keep me up-to-date on new products or sales. If I change my mind, I’ll let you know.” But, it’s a tricky situation for most of us to be in.
What is the Telexfree scam?
Telexfree (stylized as TelexFREE ), a trade name owned by Telexfree Inc., was a multibillion-dollar Ponzi scheme disguised as an internet phone service company. Prosecutors have described it as the largest fraud of all time in terms of the number of people affected – more than 1 million, with victims in various countries.
What is Telexfree in Brazil?
TelexFree in Brazil is a “Nome de fantasia”, the equivalent of a registered tradename or a d/b/a (doing business as). The main company in Brazil is Ympactus Comercial Ltda Me, probably an equivalent to a Private Limited Company.
Who is the founder of Telexfree?
Curiously enough, James Merrill is credited as being TelexFree’s founder and President, however the Massachusetts company registration clearly lists the President of TelexFree as Carlos Wanzeler (photo right).
Can Telexfree promoters be charged with criminal conspiracy charges?
To charge TelexFree promoters with criminal conspiracy charges, a prosecutor will need to prove beyond reasonable doubt (or other legal standard) that people actually KNEW they were joining a fraud (before joining it), and had the intention of defrauding other people.