Washington State Rejects TelexFree Bid To Register As Telecommunications Firm

TelexFreeLLCWashingtontelecommunications

The Washington State Utilities and Transportation Commission has rejected a bid by TelexFree LLC to register as a telecommunications company.

TelexFree LLC is not registered as a corporation in Washington state and therefore is ineligible to be registered as a telecommunications firm in the state, the commission said in a finding dated March 13.

How the order will affect TelexFree reps in Washington state  was not immediately clear this evening. Also unclear is whether TelexFree LLC will encounter similar problems in other U.S. states. TelexFree LLC  is part of an enterprise that already is offering a VOIP product and says it is expanding into cell phones, apps, credit repair and financial advice.

“THE COMMISSION REJECTS the application and petition of Telexfree, LLC, in its entirety,” the order reads in part.

TelexFree LLC’s rejected filing was submitted Feb. 13 by Joseph Isaacs, a “consultant” from Palm Harbor, Fla., according to the state. A “Telexfree LLC Balance Sheet” is listed on the state’s website as part of the submission. The balance-sheet document “properties” lists “JoeCraft” as the author.

As the PP Blog reported on March 9, the balance sheet claims TelexFree LLC has provided millions of dollars in loans to other TelexFree enterprises.

One loan, according to the document, was for more than $3.8 million and went to an entity known as Telexfree Financial Inc. Another loan of more than $2.022 million went to an entity known as TelexElectric LLLP.

In addition, the Washington state document lists a loan of more than $500,000 to an entity known as TelexMobile. Another loan of more than $291,800 went to an entity described as Ympactus. A TelexFree-related entity known as Ympactus Comercial Ltd. is based in Brazil.

TelexFree executive Carlos Costa is associated with Ympactus. Costa said yesterday that TelexFree had been assessed a tax penalty in Brazil of about $30 million.

The government of Rwanda has announced that a TelexFree enterprise has been banned in the African nation after a joint probe with Rwanda’s central bank. Rwanda said it was concerned that the enterprise posed a money-laundering risk. TelexFree, which operates in Massachusetts as TelexFree Inc., is under investigation in its home state. Brazilian prosecutors have called TelexFree a pyramid scheme.

The order in Washington state leaves open the door for TelexFree LLC, which is based in Nevada, to reapply for telecommunications registration if it gets properly registered as a corporation in Washington.

TelexFree LLC appears to have 14 days from March 14 to challenge the order. March 14 was the date the order was posted on the state’s website.

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11 Responses to “Washington State Rejects TelexFree Bid To Register As Telecommunications Firm”

  1. How long, will it take, before the regulators in the USA to close down this scheme, and are the “clawback” laws going to be enforce in third party countries???
    I sincerely hope so, I live in Portugal and there is this island were 16% of the population/fools about (41000) invested in this petty scheme and the general sense is that because of the portuguese laws they will not have to pay back anthing so they keep scheming more people and this becoming a real big problem there…and ppl like me that dont invest keep being coerced and even threatened for denouncing this scheme.

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  2. Joe Craft claims to be TelexFree’s CFO in the US, according to a mention on Faith Sloan’s website. Joe Craft’s ‘day job’ appears to be Craft Tax Solutions in Indiana. There’s a topic in BehindMLM where he apparently issued the 1099’s sent out by TelexFree, and his receptionist knows nothing about TelexFree.

    And we don’t need to mention who Joe “FHTM skapegoat” Isaacs is, do we?

    I think I’ve seen a couple states already approved TelexFree’s long distance carrier license already, may have been Texas.

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  3. Solokos:
    How long, will it take, before the regulators in the USA to close down this scheme, and are the “clawback” laws going to be enforce in third party countries???
    I sincerely hope so, I live in Portugal and there is this island were 16% of the population/fools about (41000) invested in this petty scheme and the general sense is that because of the portuguese laws they will not have to pay back anthing so they keep scheming more people and this becoming a real big problem there…and ppl like me that dont invest keep being coerced and even threatened for denouncing this scheme.

    I too live in Portugal precisely in that portuguese island you mention, Madeira, and sincerely I feel ashamed of my fellow countrymen, including working colegues, friends and sadly even close family…What bothers me most is not the fact that they think their making the “investment” of their lives but that they know its a scam AND don’t give a damn about it, they just wanna get money!…Greed to its maximum expoent!

    From what I can see current TelexFREE affiliates are somewhow sensing that its coming to an end and are already “transitioning” to other scams like Wenyard and WingsNetwork alleging that it gives better profits than TF…unfortunatly desperate and/or twats/greedy people believe this…

    Sad…

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  4. Bruno: I too live in Portugal precisely in that portuguese island you mention, Madeira, and sincerely I feel ashamed of my fellow countrymen, including working colegues, friends and sadly even close family…What bothers me most is not the fact that they think their making the “investment” of their lives but that they know its a scam AND don’t give a damn about it, they just wanna get money!…Greed to its maximum expoent!

    From what I can see current TelexFREE affiliates are somewhow sensing that its coming to an end and are already “transitioning” to other scams like Wenyard and WingsNetwork alleging that it gives better profits than TF…unfortunatly desperate and/or twats/greedy people believe this…

    Sad…

    I’m from the same Island, and couldn’t agree more with you…
    But Telexfree it’s not what I’m worrying about, because SEC will deal with it and shut it down until the end of the year, then this people will have to wait for the “Clawbacks”, it could take 2 or 3 years for that.
    My problem is with Wings Network, because people are converging to that company and that one has a Portuguese IRS nº, meaning that our authorities, as always, won’t do anything to protect their citizens like in the US.
    We just have to wait until it blast, but until there, hundreds of our fellow countrymen will suffer.

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  5. K. Chang:
    Joe Craft claims to be TelexFree’s CFO in the US, according to a mention on Faith Sloan’s website. Joe Craft’s ‘day job’ appears to be Craft Tax Solutions in Indiana. There’s a topic in BehindMLM where he apparently issued the 1099?s sent out by TelexFree, and his receptionist knows nothing about TelexFree.

    And we don’t need to mention who Joe “FHTM skapegoat” Isaacs is, do we?

    I think I’ve seen a couple states already approved TelexFree’s long distance carrier license already, may have been Texas.

    I don’t get the isaacs connection.

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  6. Whip: I don’t get the isaacs connection.

    Just do a quick Google using the terms Joe Isaacs + FHTM then look for result mentioning Quatloos and read the thread

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  7. I know about that. Just don’t know the connection to telexfree.

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  8. Kasey Chang has the association pretty well covered over on his blog: http://amlmskeptic.blogspot.com.au/2013/11/breaking-news-what-is-telexfree-us.html

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  9. Ah. I see. I knew the fhtm crap he’s posted but that was it. Thanks.

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  10. Whip: TelexFree LLC’s rejected filing was submitted Feb. 13 by Joseph Isaacs, a “consultant” from Palm Harbor, Fla.,

    See the article:

    “TelexFree LLC’s rejected filing was submitted Feb. 13 by Joseph Isaacs, a “consultant” from Palm Harbor, Fla.,”

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