REPORT: TelexFree-Related Police Raid In Brazil
UPDATED AT 11:10 P.M. EDT U.S.A. JULY 28, 2014: Globo.com (Brazil) is reporting that police raided the headquarters of Ympactus this morning in a law-enforcement action dubbed “Operation Orion.” The story suggests raids also were carried out elsewhere and that Brazilian tax authorities are involved in the actions.
Ympactus is the Brazilian affiliate of TelexFree and is most closely associated with TelexFree figure Carlos Costa. Alleged TelexFree co-owners James Merrill and Carlos Wanzeler were indicted in the United States yesterday.
TelexFree may be the largest cross-border pyramid scheme in history, with U.S. regulators describing it as a billion-dollar fraud.
The Globo report is in Portuguese; the translation to English via Google is here.
Costa is not named in the U.S. indictment, which appears to refer to him as “a third man” who formed TelexFree in the United States with Merrill and Wanzeler in 2012. Wanzeler, believed to be in Brazil, is considered a fugitive by the United States, which has issued a warrant for his arrest.
Whether Brazilian and U.S. authorities were coordinating events was not immediately clear.
A snippet from the Google translation of the Globo story (italics added):
Altogether, participated in the action 50 federal police officers and 18 auditors from the IRS Brazil. The operation name alludes to the Great Pyramids of Giza in Egypt Plain considering that the Egyptian pyramids are perfectly aligned with the constellation Orion.
UPDATE 11:10 P.M. EDT U.S.A. JULY 28, 2014: Please see this from Mikaella Campos, an economics reporter at A Gazeta Newspaper in Brazil. We are grateful to Mikaella for posting it here.
Statement by Brazilian federal police:
http://www.dpf.gov.br/agencia/noticias/2014/07/operacao-orion-apura-fraudes-financeiras-e-cumpre-mandados-judiciais-no-es
Portuguese:
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Operação Orion apura fraudes financeiras e cumpre mandados judiciais no ES
24/07/2014
Operação Orion apura fraudes financeiras e cumpre mandados judiciais no ES
Vila Velha/ES – A Polícia Federal deflagrou nesta quinta-feira (24/7) a Operação Orion*, com o objetivo de investigar crimes financeiros relacionados às atividades da TELEXFREE.
Foram cumpridos nove mandados de busca e apreensão na região metropolitana de Vitória/ES, em endereços ligados a uma empresa que representa a marca TELEXFREE no Brasil, e seus sócios.
Os mandados foram expedidos pela 1ª Vara Federal Criminal de Vitória, que também determinou medidas cautelares alternativas à prisão aos sócios da empresa, como proibição de se ausentarem do país e comparecimento mensal à Justiça Federal, bem como o sequestro de bens imóveis, o bloqueio de contas bancárias e a suspensão de atividades econômicas da TELEXFREE no Brasil.
A Operação conta com cinqüenta policiais federais e 18 auditores da Receita Federal.
A Justiça Federal autorizou a participação de Auditores Fiscais da Receita Federal na fase ostensiva da operação.
* O nome da operação faz alusão às Grandes Pirâmides da Planície de Gizé no Egito tendo em vista que as Pirâmides do Egito estão perfeitamente alinhadas à constelação Orion.
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English translation by Google:
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Vila Velha / ES – Federal police broke out on Thursday (24/7) * Operation Orion, with the aim of investigating financial crimes related to the activities of Telexfree.
Nine search warrants and seizure were completed in the metropolitan region of Vitória / ES, at addresses linked to a company that is the Telexfree brand in Brazil, and its partners.
The warrants were issued by the 1st Federal Criminal Court of Victoria, which also determined alternatives to imprisonment in the shareholders as prohibition from leaving the country and monthly attendance at the Federal Court, as well as the kidnapping of real estate, precautionary measures blocking bank accounts and the suspension of economic activities Telexfree in Brazil.
Operation has fifty federal police and 18 of IRS auditors.
The Federal Court authorized the participation of the Internal Revenue Tax Auditors in overt phase of the operation.
* The operation name alludes to the Great Pyramids of Giza in Egypt Plain considering that the Egyptian pyramids are perfectly aligned with the constellation Orion.
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Patrick
Operação ÓRION: Receita Federal combate pirâmide financeira no Espírito Santo
A Receita Federal do Brasil (RFB), a Polícia Federal e o Ministério Público Federal deflagraram nesta quinta-feira (24) a “Operação ÓRION”, com o objetivo de combater fraudes envolvendo a prática de pirâmide financeira promovida por empresas sediadas no Espírito Santo.
A ação ocorre nos municípios de Vitória, Vila Velha e Cariacica, onde estão sendo cumpridos 09 mandados de busca e apreensão nas sedes de 02 empresas, 04 escritórios de contabilidade e 03 residências de envolvidos.
Participam da operação 27 servidores da Receita Federal e 50 policiais federais.
A operação realiza-se como mais um esforço para combater um esquema de investimento conhecido como pirâmide financeira que se sustenta a partir da cobrança de taxas de adesão de divulgadores de um serviço de telefonia. A rede construída pelas empresas não condiciona os ganhos dos divulgadores à venda ou revenda dos serviços de telefonia, mas principalmente à angariação de novas adesões à rede, o que torna o esquema lucrativo somente para os membros que figuram no topo da pirâmide. O número de divulgadores prejudicados com a ação das empresas já ultrapassa um milhão de pessoas.
A empresa já está sendo investigada por diversos órgãos públicos no Brasil e no exterior. Em junho/13, a Justiça Estadual do Acre determinou a vedação de novos cadastros de divulgadores e indisponibilidade de todos os bens dos sócios de uma das empresas.
Há indícios do cometimento de crimes tributários na atuação dos divulgadores, crime contra a economia popular, com suposta formação de pirâmide, estelionato e crime de induzimento à especulação.
Às 10:30 horas será realizada uma entrevista coletiva à imprensa, com a participação de representantes da RFB, na Superintendência da Polícia Federal, em Vila Velha/ES, onde serão apresentados os resultados parciais da operação.
SOURCE: http://www.receita.fazenda.gov.br/AutomaticoSRFsinot/2014/07/24/2014_07_24_10_50_18_66614293.html
Translation by Google Translate:
Brasilia, July 24, 2014
Operation ORION: IRS combating financial pyramid in the Holy Spirit
The Federal Revenue of Brazil (RFB), the Federal Police and federal prosecutors unleashed on Thursday (24) “Operation ORION”, with the objective of combating fraud involving the practice of financial pyramid promoted by companies based in the Holy Spirit .
The action takes place in the municipalities of Victoria, Vila Velha and Cariacica, where they are being met 09 search and seizure warrants at the headquarters of 02 companies, 04 accounting firms and 03 residences involved.
Participate in the operation of the Internal Revenue 27 servers and 50 federal police.
The operation is carried out as a further effort to combat an investment scheme known as financial pyramid that sustains itself from the collection of membership fees of advisers of a telephony service. The network built by companies does not prejudge the gains of the advisers to the sale or resale of telephone services, but mainly to raise new members to the network, making it the only profitable scheme for members who are at the top of the pyramid. The number of advisers with impaired action of companies now exceeds one million people.
The company is already being investigated by various government agencies in Brazil and abroad. In junho/13, the State Court of Acre ordered the sealing of new registrations of advisers and unavailability of all assets of the shareholders of one company.
There is evidence of the commission of crimes in the performance of tax advisers, crime against the economy, with alleged pyramid formation, embezzlement and crime inducement to speculation.
10:30-hour press conference, with the participation of representatives of the RFB, the Superintendence of the Federal Police in Vila Velha / ES, where the partial results of the operation will be performed will be presented.
Patrick
Google translation to English:
https://translate.google.com/translate?sl=auto&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Feconomia.ig.com.br%2Fempresas%2F2014-07-24%2Fpolicia-faz-mega-operacao-contra-a-telexfree.html&edit-text=
Patrick
Also:
http://www.pres.mpf.mp.br/site/noticias/ler_noticia.zul?noticia=2062&categoria=0
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Operação conjunta entre MPF, Polícia Federal e Receita cumpriu mandados de busca e apreensão em nove locais nesta quinta-feira (24)
O Ministério Público Federal no Espírito Santo (MPF/ES) conseguiu na Justiça o bloqueio de bens e a quebra dos sigilos fiscal e bancários da empresa e dos sócios da Ympactus Comercial S.A, popularmente conhecida como Telexfree. Além disso, a Telexfree terá de suspender, imediata e integralmente, quaisquer atividades econômicas em território nacional. A Justiça autorizou, ainda, o cumprimento de mandados de busca e apreensão em oito locais na Grande Vitória: nas residências de dois sócios; nas sedes da Telexfree e de outra empresa investigada; e em quatro escritórios de contabilidade.
O inquérito que apura a possível ocorrência de crimes praticados pela Telexfree e pelos seus sócios foi instaurado por requisição do MPF/ES. O material apreendido vai subsidiar as investigações sobre crime contra a a ordem economia popular (pirâmide financeira/ Ponzi); oferta pública de valores mobiliários sem registro junto à Comissão de Valores Mobiliários; evasão de divisas; lavagem de dinheiro; e sonegação fiscal.
O MPF/ES chegou a requerer a prisão dos principais líderes da Telexfree mas a Justiça indeferiu o pedido. A Procuradoria, por enquanto, não vai recorrer da decisão, mas vai verificar se as medidas cautelares impostas aos sócios da empresa pela Justiça serão suficientes.
Operação Orion. Toda a investigação sobre a Telexfree no Brasil está sendo feita em conjunto entre MPF/ES, Polícia Federal e Receita Federal. Mediante pedido da Procuradoria, a Justiça autorizou o cumprimento de mandados de busca e apreensão em nove endereços na Grande Vitória: nas residências de dois sócios; nas sedes da Telexfree e de outra empresa investigada; e em quatro escritórios de contabilidade.
Os nomes dos envolvidos não estão sendo divulgados porque o processo continua tramitando sob sigilo na Justiça Federal do Espírito Santo. Atualmente, a Telexfree é alvo de uma ação civil pública na 2ª Vara Cível de Rio Branco, no Acre. Também é alvo de investigação nos Estados Unidos acerca de cometimento de fraude eletrônica instrumentalizada por uma pirâmide financeira. A Justiça americana, inclusive, determinou em abril o congelamento dos bens do grupo Telexfree. O pedido foi feito pela Securities and Exchange Commission (SEC), órgão equivalente à Comissão de Valores Mobiliários (CVM) brasileira, e determinado pelo Tribunal Distrital de Boston.
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Translation by Google Translate:
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Joint operation between MPF, Federal Police and Revenue met for search and seizure warrants at nine sites on Thursday (24)
The Federal Public Ministry in the Holy Spirit (MPF / ES) succeeded in court blocking the breakdown of assets and fiscal secrecy and banking company and partners Ympactus Comercial SA, popularly known as Telexfree. Moreover, Telexfree must suspend immediately and fully, any economic activities in the country. The court also issued warrants authorized the search and seizure at eight locations in Greater Victoria: the homes of two members; the headquarters of Telexfree and other company investigated; and four accounting firms.
The investigation that clears the possible occurrence of crimes by Telexfree and its partners was initiated by request from the MPF / ES. The seized material will support investigations into crimes against order aa popular economy (financial pyramid / Ponzi); public offering of securities without registration with the Securities and Exchange Commission; tax evasion; money laundering; and tax evasion.
The MPF / ES arrived to request the arrest of the key leaders of Telexfree but the Justice dismissed the application. The prosecution, meanwhile, will not appeal the decision, but will check out the precautionary measures imposed in the shareholders for Justice will suffice.
Operation Orion. All research on Telexfree in Brazil is being made jointly by MPF / ES, Federal Police and the IRS. Upon request of the Prosecutor, the court issued warrants authorized the search and seizure in nine addresses in Greater Victoria: the homes of two members; the headquarters of Telexfree and other company investigated; and four accounting firms.
The names of those involved are not being released because the case remains pending in federal court under seal of the Holy Spirit. Currently, Telexfree is the target of a civil action in the 2nd Civil Court of Rio Branco in Acre. Is also under investigation in the United States about to commit wire fraud manipulated by a financial pyramid. The U.S. Justice even ruled in April the freeze of assets of Telexfree group. The request was made by the Securities and Exchange Commission (SEC), an agency equivalent to the Brazilian Securities Commission (CVM), and determined by the District Court in Boston.
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Patrick
http://www.pres.mpf.mp.br/site/
prosecutor asked prison coast and carlos carlos wanzeler, but justice denied, and took steps to seize passports to prevent their departure from Brazil. The prosecutor also got permission to break financial secrecy of the two.
Delegate says are stark evidence that the company is a pyramid and acted as a financial institution without permission of the competent organ
Thank you, bentoxxi.
Patrick
to facilitate understanding:
All research on Telexfree in Brazil is being made jointly by:
– Ministério Público Federal = Prosecution Office / Espírito Santo (the state where Telexfree (ympactus) is headquartered.
– Polícia Federal = FBI
– Receita Federal = IRS (Internal Revenue Service)
News about numbers of VoIP actives in Brazil http://gazetaonline.globo.com/_conteudo/2014/07/noticias/dinheiro/1493346-divulgadores-da-telexfree-recebiam-seis-bonus-irregulares.html
More victims Journal El País today. https://translate.googleusercontent.com/translate_c?depth=1&nv=1&rurl=translate.google.com.br&tl=pt-BR&u=http://politica.elpais.com/politica/2014/07/04/actualidad/1404498398_556596.html&usg=ALkJrhjX9pTOqHoJAxH3S7jHtMAksVyVQw
I am economics reporter in A Gazeta Newspaper in ES. Do you want to receive all the reporting I’ve done?
Post as many links as you’d like, Mikaella. It’s good to know A Gazeta is on the story.
Patrick
Until October 2012, the company had 50,000 advisers and owed ??the whole, bonuses, totaling over U.S. $ 500 million (be fulfilled contracts)
According to calculations, a relationship between unbalanced accessions VoIP accounts in stock and activated lines. The existence of 28277310 VoiP accounts in stock and only 1,376,312 active lines were observed. Ie 4.55% of the product was effectively used.
(same conclusion of the SEC in the U.S., which showed an even smaller number on the entry of cash on TF, just 1% of assets coming VoIPs).
http://gazetaonline.globo.com/_conteudo/2014/07/noticias/dinheiro/1493346-divulgadores-da-telexfree-recebiam-seis-bonus-irregulares.html
http://joaldro.wordpress.com/2014/07/26/telexfree-a-casa-caiu/
Hello, Patrick. I tried to resume the story. I would like to remember: a civil action in Acre is not the same that Operation Orion. Orion is a criminal investigation
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Telexfree: the big brazilian fraud
Known as Orion, an investigation by the Federal Police against Telexfree in Espírito Santo (ES) – situated on southeastern of Brazil – was close the company’s headquarters in Vitoria, after concluding that, in addition to pyramid financial, the network acted fraudulently, committing crimes against the financial system and the public economy.
The action was based on determination of the Federal Court for the fulfillment nine search warrants and seizure organization’s offices and the home of its owners.
In injunction, the 1st Criminal Court of Federal Vitoria / ES has decided to suspend all activities Telexfree, registered in Brazil under the name of Ympactus Comercial. Also decreed the sequestration of assets, breach of banking secrecy and tax those involved in the business and the owners were prohibited from leaving the country. Yesterday, in the operation, luxury cars were seized.
The blocking of assets of the company and owners extends to their families. It is the third freezing of assets of those involved. In addition to the accounts being blocked by Justice of Acre, the 4th Court of Tax Enforcement, the ES, a month ago, had already seized the funds for payment of tax debts totaling more than US$ 80 million.
The decision to block the assets of Telexfree and the federal judge was involved Aylton Bonomo Junior. The injunction reaches beyond the Brazilian company partners, six people involved, as American James Mathew Merrill; Jozelia Mirian Sangali, wife of Carlos Costa; Katia Helia Barbosa Wanzeler, Feber Vanzeler de Almeida and Souza, Lyvia Mara Camper Wanzeler and Marilza Wanzeler Machado, Carlos Wanzeler family. These people, according to Justice, participate in Ympactus.
The judge also blocked the assets of the daughter of Carlos Costa, Leticia. “Although initially (Leticia Costa) is not on the quality of investigation, it has been demonstrated, on the topic” II.7.1 “(Das searches and seizures), is reason to suspect that your parent is using your bank account for moving illicit funds. therefore, the corresponding removal of confidentiality must be upheld”, the judge said.
Operation Orion is the result of a joint effort of the federal police, federal prosecutors and the IRS. Investigations are in the final phase and is therefore the union of two investigations which dealt with the ES group can still be accused of acting as a financial agent, commanding a grand scheme to money laundering, tax evasion and conspiracy to promote. If proven irregularities, the sentence may still exceed 10 years imprisonment.
The operation name was chosen because the Egyptian pyramids have been made ??toward three stars of Orion.
At first, the survey evaluates the conduct of two members, but will be considered if other people would also be important parts in the scheme. Criminal investigations began early last year and was in charge of the Civil Police of ES. In August 2013, the investigation was transferred to the PF.
There are more than six months at the request of federal prosecutors, the PF began a new procedure to check the collective sale of securities without the authorization of the Brazilian Securities Commission (CVM), which is equivalent to U.S. SEC.
According to the sheriff for Combating Organized Crime of PF in SSc, Rodrigo De Lucca, were analyzed thousands of documents that prove Telexfree exerted a public company activities.
“The Telexfree created a system for capturing features of securities and created a kind of financial pyramid. She managed to June last year raised more than R$ 1.2 billion only in Brazil”, said the delegate.
In megaoperation worked 50 federal police officers and 18 IRS agents to gather evidence. Besides the offices of Telexfree, searches occurred at the headquarters of Disk Will, a company that was owned by Wanzeler, and also had arms in the United States. Also hit accounting firms. USB sticks, laptops, smartphones and several boxes of documents were seized.
Fraud involving Telexfree has roots in Vitória / ES, but the extent of the damage exceeded the borders of Brazil reaching over one million people worldwide. In Massachusetts, USA, where the company also had headquarters, three charges, and administrative, civil and criminal, against the members of the company on American soil, Carlos Wanzeler (Espirito Santo) and James Merrill (American).
The Federal Court allowed the ES to evidence collected in the USA are used in Brazil to incriminate the owners.
According to the sheriff, Rodrigo De Lucca, with the loan of evidence, the intention is to find out how many people were registered on the network after the blockade in Brazil, occurred on June 18, 2013.
There will also be lending evidence to the Justice of Acre, which is processing a civil action, which paralyzed the activities of Telexfree. The action of Acre has no relation whatsoever with Operation Orion, but was crucial to the collection of materials to support criminal investigations.
To take evidence with the United States, Brazil want to determine the amounts handled by the company after the blockage in Brazil. Possibly, too much money left Brazil illegally.
Estimates of the Securities and Exchange Commission (SEC) Massachusetts – equivalent to the Securities Commission in Brazil – show revenues of almost US$ 1.2 billion from February 2012 until April 2014, when the Telexfree had its prohibited operating in the United States.
“There was the first exchange of information with the United States. We now only awaits the formal request for the evidence to come from there to Brazil. The conclusion of the investigation is very transparent and coincides with U.S. foundations”, said the delegate.
The company’s activities in the U.S. started after June 2013. But even with the ban on registering people in Brazil, representatives of the company inscribed enrolled, issuing contracts with a second Telexfree, based in Nevada.
Both here and in the U.S., the activities are characterized as hybrid Ponzi pyramid. “The company used the VoiP to attract advisers who paid fee to be part of the business. They had an obligation to make daily announcements on free pre-formulated with the promise of profit up to 200% per annum sites”, he adds.
Although federal prosecutors have requested the arrest of Carlos Wanzeler and Carlos Costa, owners of Telexfree, the restrictive measures taken by the Federal Court in the ES were alternatives. They will have to submit monthly Justice ES. However, Espirito Santo was accused Wanzeler in Federal Court in the United States being one of the masterminds of the scheme and can be arrested in Brazil.
A grand jury in the United States denounced Wednesday for nine counts of fraud. A federal detention order was issued in Massachusetts. If the U.S. court ask the Brazil, the arrest may be executed by the Brazilian PF.
Last May, Fantastico, Rede Globo TV’s show, showed that Telexfree continued to work in Brazil. According to lawyer Antonio Carlos de Almeida Castro, also known as “Kakay”, the operation performed yesterday was unnecessary because the company did not work. “MPF did what it thought was necessary, but I do not agree. We want to expedite the investigation and we can not accept this amount of claims against the company. Ideally, everything is in one place. The people who worked at the headquarters of Telexfree preparing documentation for the bankruptcy filing”, said Kakay. At the time of the reportage on Fantastico, Carlos Costa, director of the company, said the employees worked for Telexfree money back for advisers.
*Frauds
Preliminary complaints made to the Federal Court against the owners of the ES Telexfree claim that nine types of subsidies paid by the company to members, at least six were illegal.
According to information contained in the 1st Federal Court decision in Victoria, offers of compensation would be based on the registration of new members (financial pyramid) and delivery of money from one investor to another in the oldest business (Ponzi scheme).
Gains considered legitimate by the police investigation were the 10% commission by selling VoIP company, 2% of income over the net sellers to the 5th level and still pay for the product in stock investor.
However, Telexfree still pay promised bonuses for direct indication of other associated binaries for the formation of a pair of new members, royalties on the sales of the company and a special bonus for those who assume a higher rank in the network of advisers.
“The detailed report concluded that other forms of income constitute an offer of securities to the public”, said the document delivered to justice.
*Federal Judge
The federal judge responsible for reviewing requests, Aylton Bonomo Jr., said in his decision that there is “such forms of collective investment subsidy featuring contract”, serving as a member for the granting of precautionary measures.
Federal investigations were launched six months ago and joined a local police investigation was proceeding through the state since January last year.
According to the MPF and PF between January 2012 and June 2013, when the company was blocked by Justice of Acre, over 712,000 people were registered on the network.
Investigations were also on that same publisher could make several entries in the company. A case cited is an affiliate of Rio Grande do Norte, which had nearly 800 records in Telexfree.
Studies show police for financial unsustainability of the company. Until October 2012, the company had 50,000 advisers and owed ??the whole, bonuses, totaling over US$ 220 million. However, the company had a deficit well above the US$ 170 million. In his defense, said Telexfree have billed approximately US$ 330 million in the first half of 2013.
Spreadsheets provided by the researchers demonstrate Telexfree second calculations, an unbalanced relationship between accessions, VoIP accounts in stock and activated lines. The existence of 28277310 VoiP accounts in stock and only 1,376,312 active lines were observed. Ie 4.55% of the product was effectively used.
The owners of Telexfree at the beginning of the investigation, were accused of participating in the classic pyramid. However, police say there is evidence that the company has committed crimes against the financial system. Among the irregularities is possible sale of investments without authorization from the Securities Commission (CVM).
A complaint made to the Federal Court states that the company disponibilizava two opportunities securities business. One would be the collective sale of securities and other investment in the supply of hotel.
Advocates of Telexfree deny irregularities. Its marketing director, Carlos Costa, in video posted on YouTube yesterday, spoke about Operation Orion. He argues that the search and seizure warrant at the home of partners and offices connected to the network occurred a year and a half after the start of the investigation. Says the move was a political act and that the company has always made everything available to the Court. And points out that it is not Telexfree pyramid and that there is no criminal action.
*Doubly advisers investigated
The members of Telexfree, called promoters, are at risk of having to settle accounts with the Treasury and with justice. Affiliates are investigated by the IRS and the Civil Police of Acre.
In ES, the share of tax authorities in Operation Orion aims to investigate tax irregularities involving company owners and investors.
In Acre, the Civil Police try to unravel the network of advisers Telexfree and possible participation in other similar schemes. The intention is mainly to discover people who earned more than US$ 45,000 to participate in the financial pyramid.
The police investigation in Acre will use data from an audit of Telexfree to build a “web” of investors and discover the main leaders.
The purpose is also to separate the “wheat from the chaff”, ie, check who came in good faith and business associates who knew the pyramid and still recruiting more people for fraudulent business.
In Acre, the defendant Telexfree is a civil action that blocked its assets and borrowing the money back to those who missed the goods to join the company.
By the Telexfree Facebook page, many advisers have accused the company of sending proof of annual income and Income Tax Withholding with erroneous data.
Many claim that fell in the fine mesh. The sheriff from the IRS in the ES, Luiz Antônio Bosser says the documents listed in the transaction will be used to find evidence of tax crimes of all involved.
How to Income Tax, the delegate explained that the advisers who filed a declaration with the inconsistencies Telexfree should rectify the document ASAP. “We are providing an opportunity for these people predict their income tax before being summoned by the IRS.”
*Revenue clears the upper hole to US$ 80 million
With the documents raised in Operation Orion, the IRS will examine whether Telexfree withheld in federal taxes much more than US$ 80 million already raised by the agency.
On June 2, 2014, the National Treasury Attorney filed tax prep injunction in 4th Court of Tax Enforcement in Victoria to save money to pay tax debts of the company with the Union surveys so far show that the company should various taxes, as income tax, social contribution, PIS, COFINS, and social security contributions.
In YouTube videos, the director of Telexfree, Carlos Costa, said that the network was acting within the law, to make all tax gatherings.
The Union requested the unavailability of permanent assets – furniture, property, livestock and other real and personal rights, including shares and shares of other groups. The attorney Telexfree Danny Cabral said, two weeks ago, to A GAZETA newspapper there that the company had collected these taxes and that the IRS action happened improperly.
Hello, Patrick. I tried to resume the story. I would like to remember: a civil action in Acre is not the same that Operation Orion. Orion is a criminal investigation.
I’m sorry. There was a mistke in the first story. The correct story is this.
If you want, feel free to correct the mistakes of English.
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Telexfree: the big brazilian fraud
Known as Orion, an investigation by the Federal Police against Telexfree in Espírito Santo (ES) – situated on southeastern of Brazil – was close the company’s headquarters in Vitoria, after concluding that, in addition to pyramid financial, the network acted fraudulently, committing crimes against the financial system and the public economy.
The action was based on determination of the Federal Court for the fulfillment nine search warrants and seizure organization’s offices and the home of its owners.
In injunction, the 1st Criminal Court of Federal Vitoria / ES has decided to suspend all activities Telexfree, registered in Brazil under the name of Ympactus Comercial. Also decreed the sequestration of assets, breach of banking secrecy and tax those involved in the business and the owners were prohibited from leaving the country. Yesterday, in the operation, luxury cars were seized.
The blocking of assets of the company and owners extends to their families. It is the third freezing of assets of those involved. In addition to the accounts being blocked by Justice of Acre, the 4th Court of Tax Enforcement, the ES, a month ago, had already seized the funds for payment of tax debts totaling more than US$ 80 million.
The decision to block the assets of Telexfree and the federal judge was involved Aylton Bonomo Junior. The injunction reaches beyond the Brazilian company partners, six people involved, as American James Mathew Merrill; Jozelia Mirian Sangali, wife of Carlos Costa; Katia Helia Barbosa Wanzeler, Feber Vanzeler de Almeida and Souza, Lyvia Mara Camper Wanzeler and Marilza Wanzeler Machado, Carlos Wanzeler family. These people, according to Justice, participate in Ympactus.
The judge also blocked the assets of the daughter of Carlos Costa, Leticia. “Although initially (Leticia Costa) is not on the quality of investigation, it has been demonstrated, on the topic” II.7.1 “(Das searches and seizures), is reason to suspect that your parent is using your bank account for moving illicit funds. therefore, the corresponding removal of confidentiality must be upheld”, the judge said.
Operation Orion is the result of a joint effort of the federal police, federal prosecutors and the IRS. Investigations are in the final phase and is therefore the union of two investigations which dealt with the ES group can still be accused of acting as a financial agent, commanding a grand scheme to money laundering, tax evasion and conspiracy to promote. If proven irregularities, the sentence may still exceed 10 years imprisonment.
The operation name was chosen because the Egyptian pyramids have been made ??toward three stars of Orion.
At first, the survey evaluates the conduct of two members, but will be considered if other people would also be important parts in the scheme. Criminal investigations began early last year and was in charge of the Civil Police of ES. In August 2013, the investigation was transferred to the PF.
There are more than six months at the request of federal prosecutors, the PF began a new procedure to check the collective sale of securities without the authorization of the Brazilian Securities Commission (CVM), which is equivalent to U.S. SEC.
According to the sheriff for Combating Organized Crime of PF in SSc, Rodrigo De Lucca, were analyzed thousands of documents that prove Telexfree exerted a public company activities.
“The Telexfree created a system for capturing features of securities and created a kind of financial pyramid. She managed to June last year raised more than R$ 1.2 billion only in Brazil”, said the delegate.
In megaoperation worked 50 federal police officers and 18 IRS agents to gather evidence. Besides the offices of Telexfree, searches occurred at the headquarters of Disk Will, a company that was owned by Wanzeler, and also had arms in the United States. Also hit accounting firms. USB sticks, laptops, smartphones and several boxes of documents were seized.
Fraud involving Telexfree has roots in Vitória / ES, but the extent of the damage exceeded the borders of Brazil reaching over one million people worldwide. In Massachusetts, USA, where the company also had headquarters, three charges, and administrative, civil and criminal, against the members of the company on American soil, Carlos Wanzeler (Espirito Santo) and James Merrill (American).
The Federal Court allowed the ES to evidence collected in the USA are used in Brazil to incriminate the owners.
According to the sheriff, Rodrigo De Lucca, with the loan of evidence, the intention is to find out how many people were registered on the network after the blockade in Brazil, occurred on June 18, 2013.
There will also be lending evidence to the Justice of Acre, which is processing a civil action, which paralyzed the activities of Telexfree. The action of Acre has no relation whatsoever with Operation Orion, but was crucial to the collection of materials to support criminal investigations.
To take evidence with the United States, Brazil want to determine the amounts handled by the company after the blockage in Brazil. Possibly, too much money left Brazil illegally.
Estimates of the Securities and Exchange Commission (SEC) Massachusetts – equivalent to the Securities Commission in Brazil – show revenues of almost US$ 1.2 billion from February 2012 until April 2014, when the Telexfree had its prohibited operating in the United States.
“There was the first exchange of information with the United States. We now only awaits the formal request for the evidence to come from there to Brazil. The conclusion of the investigation is very transparent and coincides with U.S. foundations”, said the delegate.
The company’s activities in the U.S. started after June 2013. But even with the ban on registering people in Brazil, representatives of the company inscribed enrolled, issuing contracts with a second Telexfree, based in Nevada.
Both here and in the U.S., the activities are characterized as hybrid Ponzi pyramid. “The company used the VoiP to attract advisers who paid fee to be part of the business. They had an obligation to make daily announcements on free pre-formulated with the promise of profit up to 200% per annum sites”, he adds.
Although federal prosecutors have requested the arrest of Carlos Wanzeler and Carlos Costa, owners of Telexfree, the restrictive measures taken by the Federal Court in the ES were alternatives. They will have to submit monthly Justice ES. However, Espirito Santo was accused Wanzeler in Federal Court in the United States being one of the masterminds of the scheme and can be arrested in Brazil.
A grand jury in the United States denounced Wednesday for nine counts of fraud. A federal detention order was issued in Massachusetts. If the U.S. court ask the Brazil, the arrest may be executed by the Brazilian PF.
Last May, Fantastico, Rede Globo TV’s show, showed that Telexfree continued to work in Brazil. According to lawyer Antonio Carlos de Almeida Castro, also known as “Kakay”, the operation performed yesterday was unnecessary because the company did not work. “MPF did what it thought was necessary, but I do not agree. We want to expedite the investigation and we can not accept this amount of claims against the company. Ideally, everything is in one place. The people who worked at the headquarters of Telexfree preparing documentation for the bankruptcy filing”, said Kakay. At the time of the reportage on Fantastico, Carlos Costa, director of the company, said the employees worked for Telexfree money back for advisers.
frauds
Preliminary complaints made to the Federal Court against the owners of the ES Telexfree claim that nine types of subsidies paid by the company to members, at least six were illegal.
According to information contained in the 1st Federal Court decision in Victoria, offers of compensation would be based on the registration of new members (financial pyramid) and delivery of money from one investor to another in the oldest business (Ponzi scheme).
Gains considered legitimate by the police investigation were the 10% commission by selling VoIP company, 2% of income over the net sellers to the 5th level and still pay for the product in stock investor.
However, Telexfree still pay promised bonuses for direct indication of other associated binaries for the formation of a pair of new members, royalties on the sales of the company and a special bonus for those who assume a higher rank in the network of advisers.
“The detailed report concluded that other forms of income constitute an offer of securities to the public”, said the document delivered to justice.
Federal Judge
The federal judge responsible for reviewing requests, Aylton Bonomo Jr., said in his decision that there is “such forms of collective investment subsidy featuring contract”, serving as a member for the granting of precautionary measures.
Federal investigations were launched six months ago and joined a local police investigation was proceeding through the state since January last year.
According to the MPF and PF between January 2012 and June 2013, when the company was blocked by Justice of Acre, over 712,000 people were registered on the network.
Investigations were also on that same publisher could make several entries in the company. A case cited is an affiliate of Rio Grande do Norte, which had nearly 800 records in Telexfree.
Studies show police for financial unsustainability of the company. Until October 2012, the company had 50,000 advisers and owed ??the whole, bonuses, totaling over US$ 220 million. However, the company had a deficit well above the US$ 170 million. In his defense, said Telexfree have billed approximately US$ 330 million in the first half of 2013.
Spreadsheets provided by the researchers demonstrate Telexfree second calculations, an unbalanced relationship between accessions, VoIP accounts in stock and activated lines. The existence of 28277310 VoiP accounts in stock and only 1,376,312 active lines were observed. Ie 4.55% of the product was effectively used.
The owners of Telexfree at the beginning of the investigation, were accused of participating in the classic pyramid. However, police say there is evidence that the company has committed crimes against the financial system. Among the irregularities is possible sale of investments without authorization from the Securities Commission (CVM).
A complaint made to the Federal Court states that the company disponibilizava two opportunities securities business. One would be the collective sale of securities and other investment in the supply of hotel.
Advocates of Telexfree deny irregularities. Its marketing director, Carlos Costa, in video posted on YouTube yesterday, spoke about Operation Orion. He argues that the search and seizure warrant at the home of partners and offices connected to the network occurred a year and a half after the start of the investigation. Says the move was a political act and that the company has always made everything available to the Court. And points out that it is not Telexfree pyramid and that there is no criminal action.
Doubly advisers investigated
The members of Telexfree, called promoters, are at risk of having to settle accounts with the Treasury and with justice. Affiliates are investigated by the IRS and the Civil Police of Acre.
In ES, the share of tax authorities in Operation Orion aims to investigate tax irregularities involving company owners and investors.
In Acre, the Civil Police try to unravel the network of advisers Telexfree and possible participation in other similar schemes. The intention is mainly to discover people who earned more than US$ 45,000 to participate in the financial pyramid.
The police investigation in Acre will use data from an audit of Telexfree to build a “web” of investors and discover the main leaders.
The purpose is also to separate the “wheat from the chaff”, ie, check who came in good faith and business associates who knew the pyramid and still recruiting more people for fraudulent business.
In Acre, the defendant Telexfree is a civil action that blocked its assets and borrowing the money back to those who missed the goods to join the company.
By the Telexfree Facebook page, many advisers have accused the company of sending proof of annual income and Income Tax Withholding with erroneous data.
Many claim that fell in the fine mesh. The sheriff from the IRS in the ES, Luiz Antônio Bosser says the documents listed in the transaction will be used to find evidence of tax crimes of all involved.
How to Income Tax, the delegate explained that the advisers who filed a declaration with the inconsistencies Telexfree should rectify the document ASAP. “We are providing an opportunity for these people predict their income tax before being summoned by the IRS.”
Receita investigation fraud of US$ 80 million
With the documents raised in Operation Orion, the IRS will examine whether Telexfree withheld in federal taxes much more than US$ 80 million already raised by the agency.
On June 2, 2014, the National Treasury Attorney filed tax prep injunction in 4th Court of Tax Enforcement in Victoria to save money to pay tax debts of the company with the Union surveys so far show that the company should various taxes, as income tax, social contribution, PIS, COFINS, and social security contributions.
In YouTube videos, the director of Telexfree, Carlos Costa, said that the network was acting within the law, to make all tax gatherings.
The Union requested the unavailability of permanent assets – furniture, property, livestock and other real and personal rights, including shares and shares of other groups. The attorney Telexfree Danny Cabral said, two weeks ago, to A GAZETA newspapper there that the company had collected these taxes and that the IRS action happened improperly.
You’re doing just fine, Mikaella. Thank you.
Patrick
I have posted a link to Mikaella’s comments on behindmlm.com, post #56.
NOLINK://behindmlm.com/companies/telexfree/brazilian-feds-launch-operation-orion-against-telexfree/#comment-319068
The NOLINK-method was used because there’s no reason for sending people back and forth between comments.