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Author: PatrickPretty.com

  • Effort To Fete Two-Time SEC Pyramid Defendant And Alleged Racketeer Sann Rodrigues In Brazilian Senate Hall Reportedly Thwarted

    Sann Rodrigues. From a promo for a March TelexFree event in Spain at which Sann Rodrigues was feted.
    Sann Rodrigues. From a promo for a March TelexFree event in Spain at which Sann Rodrigues was feted.

    Politicians appear to have spared themselves some embarrassment, but MLM had another La-La Land PR train wreck today.

    iG (Brazil) is reporting that an effort to honor accused TelexFree pitchman and two-time SEC defendant Sann Rodrigues in a Brazilian Senate hall today was thwarted. The effort to fete Rodrigues appears to have been staged by a Brazilian MLM cheerleader, who reportedly also wanted Rodrigues named to the Multilevel Marketing Regulatory Agency of Brazil, which is not a government arm despite its name.

    The effort collapsed when iG contacted a Senate member, iG reported.

    From a translation from Portuguese to English by Google translate (italics added):

    The event was canceled after the iG contacting the office of Senator Cicero Lucena (PSDB-PB), which had made the reservation request the auditorium Petronio Portella Senate at the request of Regino Barros.

    An assessor’s office reported that such requests are common and that senators do not participate in drawing up the list.

    Earlier this month Rodrigues was accused of racketeering by TelexFree members suing the enterprise and several individuals, including accused TelexFree Ponzi schemers James Merrill and Carlos Wanzeler and MLM attorney Gerald Nehra.

    TelexFree staged a March 1 and March 2 awards ceremony in Madrid, Spain, at which Rodrigues was feted. Nehra also was feted, but appears not to have shown up to accept the award.

    Merrill, Wanzeler and Steve Labriola, another TelexFree SEC defendant, also were feted at the Madrid event. Merrill was jailed in the United States two months later, and Wanzeler allegedly fled to Brazil and became a fugitive.

    The massive TelexFree pyramid- and Ponzi scheme began to collapse on March 9, just a week after the Madrid event, according to court filings and other documents.

    “Rodrigues used investor funds to buy expensive automobiles, including a Lamborghini, a Ferrari, and two Mercedes Benz,” the SEC charged in an amended TelexFree complaint earlier this week. (See May 27, 2014, PP Blog story.)

    In 2006, Rodrigues was named an SEC defendant in a complaint that charged he operated a pyramid scheme involving phone cards. The phone-card scheme was targeted at the Brazilian community, the SEC said at the time.

    In April 2014, he was named one of eight individual defendants in the SEC’s TelexFree action.

    TelexFree also offered a communications product and, like the 2006 Rodrigues scheme, was targeted at the Brazilian community. TelexFree also targeted Latinos, according to records.

     

     

     

  • Zeek Receiver Proposes Date For First Interim Distribution

    Zeek receiver Kenneth D. Bell.
    Zeek receiver Kenneth D. Bell.

    Kenneth D. Bell, the receiver in the Zeek Rewards Ponzi- and pyramid case, has asked a federal judge to set Sept. 30 as the date of the first interim distribution to victims. Senior U.S. District Judge Graham C. Mullen of the Western District of North Carolina must approve the proposal and other scheduling logistics proposed by Bell. Victims with allowed claims would be paid by check.

    Bell, according to the proposal, believes that approximately $320 million held by the receivership estate is enough to provide victims “a total recovery in regard to their investment into the ZeekRewards Scheme of at least 40%” when the initial distribution occurs.

    Some money must remain in reserve, however, to continue to fund the receivership as it pursues recoveries from alleged insiders, “winners” and “others who benefited from or improperly facilitated the ZeekRewards Scheme.” Other distributions would occur over time, as more money flows to the receivership.

    If Mullen approves the proposal, some money could be in the hands of tens of thousands of Zeek victims by early fall.

    About 175,000 claims have been filed, and “approximately 150,000 Claim Determinations have been issued by the Receivership Team,” Bell advised the judge, noting that about 25,000 claims remain under review.

    NOTE: Thanks to the ASD Updates Blog. Read Bell’s proposal for the first interim distribution here.

  • MAYA ANGELOU: 1928-2014: A Statement By The President Of The United States

    Maya Angelou. Source: Wake Forest University News Center.
    Maya Angelou. Source: Wake Forest University News Center.

    A statement by Barack Obama, the President of the United States, on the passing of Maya Angelou:

    When her friend Nelson Mandela passed away last year, Maya Angelou wrote that “No sun outlasts its sunset, but will rise again, and bring the dawn.”

    Today, Michelle and I join millions around the world in remembering one of the brightest lights of our time – a brilliant writer, a fierce friend, and a truly phenomenal woman. Over the course of her remarkable life, Maya was many things – an author, poet, civil rights activist, playwright, actress, director, composer, singer and dancer. But above all, she was a storyteller – and her greatest stories were true. A childhood of suffering and abuse actually drove her to stop speaking – but the voice she found helped generations of Americans find their rainbow amidst the clouds, and inspired the rest of us to be our best selves. In fact, she inspired my own mother to name my sister Maya.

    Like so many others, Michelle and I will always cherish the time we were privileged to spend with Maya. With a kind word and a strong embrace, she had the ability to remind us that we are all God’s children; that we all have something to offer. And while Maya’s day may be done, we take comfort in knowing that her song will continue, “flung up to heaven” – and we celebrate the dawn that Maya Angelou helped bring.

    A statement by Bill Clinton, former President of the United States:

    With Maya Angelou’s passing, America has lost a national treasure; and Hillary and I, a beloved friend.

    The poems and stories she wrote and read to us in her commanding voice were gifts of wisdom and wit, courage and grace.

    I will always be grateful for her electrifying reading of “On the Pulse of Morning” at my first inaugural, and even more for all the years of friendship that followed.

    Now she sings the songs the Creator gave to her when the river “and the tree and the stone were one.”

    Our deepest sympathies are with Guy and his family.

    A statement by George W. Bush, former President of the United States:

    Laura and I are saddened to learn of the death of Maya Angelou. She was among the most talented writers of our time. Her words inspired peace and equality and enriched the culture of our country. We are grateful for the work she leaves behind, and we wish her the peace she always sought.

    A statement by Nathan Hatch, president of Wake Forest University:

    Maya Angelou has been a towering figure — at Wake Forest and in American culture. She had a profound influence in civil rights and racial reconciliation. We will miss profoundly her lyrical voice and always keen insights.

    A statement by Eric Holder, Attorney General of the United States:

    I was deeply saddened to learn of the passing of Maya Angelou, a true national treasure whom I have admired greatly for many, many years.

    Dr. Angelou was much more than a literary genius, a chronicler of Jim Crow, and a witness to history.  Through her extraordinary work, she captured the tenacity of the human spirit and spoke of harsh realities in the most evocative, moving, and lyrical of ways.  Over the course of a career spanning some of the most tumultuous decades of the last century, she taught us how to rise above ‘a past that’s rooted in pain.’  She gave voice to a people too often shut out of America’s public discourse.  She displayed remarkable courage in the face of tremendous adversity.  And she inspired generations to overcome life’s greatest challenges – through her extensive writings, her performances, her advocacy, her educational work, and her principled activism.

    For my family and me, Maya Angelou will always be much more than a great American and an icon in world literature.  She is the namesake of one of my daughters, who met her as a young girl and celebrated her twenty-first birthday just one day before the elder Maya was lost to us.  Although our hearts are filled with grief at the news of her passing – a sorrow made all the more acute by the knowledge that we shall not see her like again – she will continue to be a source of strength and inspiration.  She will endure in the singular body of work she leaves behind.  And she will live on in the shining example that guides our steps forward and fuels the work that remains.

    We have lost a legend, a trailblazer in the truest sense, and one of the guiding lights of the 20th century.  Yet despite our heartache and our pain, Maya Angelou will always be with us.  Her voice will continue to console, to challenge, and to inspire us.  We bid her farewell today.  But we know that, even now, ‘into a daybreak that’s wondrously clear,’ still she rises.

     

     

  • BULLETIN: SEC: Carlos Wanzeler Built ‘Small Real Estate Empire’ Consisting Of 34 Properties Mostly Acquired With Cash; Alleged Fugitive Also Acquired Yacht, 2 Ferraris, A Porsche And 3 Bimmers — And Put New Mexico Firm Set Up By Joe Craft In Charge Of Nevis Company

    Carlos Wanzeler. From You Tube.
    Carlos Wanzeler. From You Tube.

    BULLETIN: (8th update 9:10 p.m. EDT U.S.A.) In an amended complaint in the SEC’s pyramid- and Ponzi case against TelexFree, the agency says alleged TelexFree fugitive Carlos Wanzeler was using investors’ money to build a “small real estate empire” that consisted of 34 properties in Massachusetts and Florida.

    Wanzeler, 45, also allegedly acquired a 40-foot yacht for “$273,878 in cash,” along with two other boats and “a fleet of fancy automobiles.”

    “He paid $192,868 for two Ferrari F340 Spiders in March 2013 and $56,610 for a Porsche in February 2013. He also bought three BMW’s and a Toyota Highlander,” the SEC charged.

    TelexFree purported to be a VOIP firm branching out into apps, cell phones and credit repair.

    On the real-estate front, the SEC charged, Wanzeler went through at least $6.3 million — mostly in cash — to acquire the 34 properties, including $950,000 for the home he shared with his wife in Massachusetts and $450,000 for a home for his son in Florida.

    From the SEC’s complaint (italics added)

    “He made most of the acquisitions using companies under his control including: (i) JC Real Estate Management Company LLC, a Nevada limited liability company that was formed in July 2012 with Wanzeler and [James] Merrill as managers; (ii) Above & Beyond the Limit, LLC (“Above & Beyond”), a New Mexico limited liability company that [Joe] Craft formed for Wanzeler in September 2012, (iii) CNW Realty State, LLC, a Nevis corporation that was formed in October 2012 with Above & Beyond as manager; (iv) KC Realty State LLC, a Florida limited liability company that Craft formed in October 2012 with Katia Wanzeler as manager; (v) Acceris Realty Estate, LLC, a Massachusetts limited liability company that Craft formed in February 2013 with Katia Wanzeler as manager; and (vi) Makeover Investments LLC, a Florida limited liability company that was formed in July 2013 with Marilza Wanzeler, Wanzeler’s 65-year-old mother, as a manager.”

    James Merrill is TelexFree’s alleged co-owner with Carlos Wanzeler. Joe Craft is TelexFree’s former CFO. All three men are accused of fraud at TelexFree and receiving millions of dollars from the company.

    Nevis is an island in the Caribbean.

    Steve Labriola, another TelexFree executive accused of fraud, received $46,600 through the New Mexico entity in 2013 and only $8,500 from TelexFree, according to a preliminary analysis by the SEC.

    TelexFree filed for bankruptcy protection in the United States on April 13, with Wanzeler and Merrill effectively appointing Craft to the TelexFree CFO post, according to court filings. It’s almost certainly the case that TelexFree members at large did not know about the network of other companies associated in one way or another with the Wanzeler family, Merrill and Craft.

    In its bankruptcy filing, TelexFree sought to reject its contracts with members. The SEC has described the TelexFree “program” as a massive pyramid- and Ponzi swindle. A U.S. Bankruptcy Judge intends to appoint a trustee in the TelexFree case, the Wall Street Journal reported late this afternoon.

    “The information available to date indicates that, between November 2012 and February 2014, Wanzeler and members of his family received almost $13.7 million from TelexFree,” the SEC charged.

    Investor funds were used to make the real-estate acquisitions and to purchase the cars, yacht and boats, the SEC charged.

    Today’s amended complaint also alleges that TelexFree promoter Santiago De La Rosa used investor cash to support his lifestyle, including “$501,000 in cash for a house in Lynn, Massachusetts” and money spent on a BMW and Mercedes-Benz.

    Accused promoter Randy Crosby, meanwhile, “paid $70,000 in cash for a Porsche in September 2013 and $99,000 in cash for another Porsche in December 2013, the SEC charged, citing information available to date.

    At the same time, the SEC charged while citing information available to date, accused promoter Faith Sloan “received more than $160,400 from TelexFree investors and $51,000 from TelexFree itself.”

    Accused promoter Sanderley Rodrigues (a/k/a Sann Rodrigues) received $317,220 from TelexFree between September 2012 and March 2013 through entities known as WWW Global Business Inc. and VICSS Inc., the SEC charged, again citing information available to date.

    The SEC further alleged that Rodrigues had claimed to have made $3 million through TelexFree.

    “Rodrigues used investor funds to buy expensive automobiles, including a Lamborghini, a Ferrari, and two Mercedes Benz,” the SEC charged.

    NOTE: Our thanks to the ASD Updates Blog.

  • TelexFree Faces Prospect Of Regulatory Probe In Oregon; [UPDATE: Judge To Appoint Bankruptcy Trustee, WSJ Reports]

    Redactions by PP Blog.
    Redactions by PP Blog.

    UPDATED 5:06 P.M. EDT U.S.A. See Comments thread below for breaking news that the judge overseeing the TelexFree bankruptcy case in Massachusetts will appoint a trustee. First reported by the Wall Street Journal. Original story on separate TelexFree matter in Oregon is below . . .

    ** ______________________________ **

    The staff of the Oregon Public Utilities Commission has recommended that the agency open an investigation into TelexFree, citing the MLM “program’s” bankruptcy filing, civil actions against it by the Massachusetts Securities Division and the U.S. Securities and Exchange Commission and the criminal charges against alleged TelexFree co-owners James Merrill and Carlos Wanzeler.

    Should TelexFree not respond appropriately in Oregon, the PUC staff said, the commission should strip it of its telecom license.

    TelexFree faces similar regulatory encounters in Nevada and Minnesota.  On May 23 in Minnesota, the state Department of Commerce added to its TelexFree file by pointing the Public Utilities Commission to a May 20 Boston Globe story with a headline of “TelexFree co-owner to stay in custody until trial.”

    It was a story about a U.S. Magistrate Judge’s decision not to grant Merrill bail. The Globe story notes Wanzeler is considered a fugitive by the U.S. Department of Justice.

    TelexFree’s licensing in Alabama also is at risk, and there could be trouble brewing in other states even as TelexFree continues to pursue Chapter 11 bankruptcy protection.

    In addition, TelexFree faces multiple prospective class-action lawsuits, including at least two that allege violations of the federal racketeering statute. A report in Peruvian media last week suggests that racketeering at TelexFree cut both ways.

    With U.S.-based litigants asserting TelexFree was a racketeering enterprise, La Republica in Peru published a report that suggested a TelexFree promoter in the country  was kidnapped by fellow members last week and ordered to go to a bank to withdraw funds to make them whole. The extortion plan reportedly failed.

    TelexFree has asserted in bankruptcy-court filings that its future business prospects involving VOIP and app products are exciting. A U.S. Bankruptcy Trustee argued that TelexFree was advancing a “rabbit hole” narrative and expecting the judiciary to follow it.

    From the Oregon filing by the PUC staff (italics added):

    The allegations facing the Company raise serious issues as to whether or not the Company should be permitted to retain its certificate of authority. Staff has been unable to reach anyone from the Company to obtain further information. Staff stated in its communications that the Company may request that the Commission cancel its certificate under the current circumstances. It is unlikely that any services will be offered in Oregon as the Company’s assets are frozen, it is in bankruptcy proceedings, and its offices are the target of federal government activity. Nevertheless, cancelling the Company’s certificate to provide services in Oregon would foreclose the possibility.

    TelexFree asserts on its website that it has “suspended all business activity.”

  • DISTURBING: Report Of TelexFree-Related Kidnapping And Extortion Bid

    telexfreelogoLa Republica, a newspaper in Peru, is citing information from police and reporting that a TelexFree promoter in the country was kidnapped Thursday afternoon and held in a van. The PP Blog cannot independently verify the report, which suggests the kidnapping was carried out by TelexFree members who ordered the man to withdraw money from a bank to make them whole.

    In Peru and across the world, individual TelexFree members recruited others into MLM downlines. La Republica’s report suggests the kidnappers’ extortion plot failed, but one person reportedly was captured while others fled.

    Court records in the United States allege that some TelexFree sponsors collected money from individual recruits, rather than directing the recruits pay TelexFree directly. Such a practice may establish a dangerous black-market economy while setting the stage for scams to occur inside of scams.

    How the asserted Peruvian kidnapping victim handled TelexFree transactions is unclear. Even if recruits paid TelexFree directly, however, it’s no guarantee against an angry mob. In a 2009 Ponzi case in the United States, the FBI warned against Ponzi victims taking matters into their own hands. Four persons were charged criminally in an alleged shakedown bid associated with the 2009 case in California.

    “In their guilty pleas the defendants admitted to creating an environment that was intimidating and causing the individuals to believe that they were not free to leave,” the FBI said in 2010.

    On April 1, 12 days before TelexFree declared bankruptcy in the United States, unhappy affiliates jammed the “program’s” office in Massachusetts. Police were called to defuse the situation.

    Here is La Republica’s May 24 report in Spanish. Access the Google Translate tool here.

    It’s often the case in the HYIP sphere that individual promoters push multiple scams simultaneously, potentially setting the stage for recruits to take multiple baths. It is known, for example, that some TelexFree promoters also were pushing WCM777 and Wings Network.

    The SEC has called WCM777 an $80 million fraud scheme. Wings Network has been accused in Massachusetts of selling unregistered securities as investment contracts. Vulnerable populations often are targeted in HYIP scams.

    There have been reports of at least two TelexFree-related suicide deaths. Some TelexFree affiliates spammed reports of the deaths with offers to join the “program,” which the Massachusetts Securities Division has described as a combined pyramid- and Ponzi scheme that gathered more than $1.2 billion.

    In April, the U.S. Securities and Exchange Commission sued TelexFree and eight managers/executive or promoters, alleging a massive fraud scheme.

    Some promoters continued to promote TelexFree after a Brazilian court froze TelexFree-related assets last year and suspended new registrations in that country. Promoters’ solicitations to prospects to join the “program” continued even after a judge and prosecutor in Brazil were threatened with death.

    As the PP Blog reported on May 22, the FBI and the U.S. Department of Homeland Security have established a website for TelexFree victims. So has the Massachusetts Securities Division, as the PP Blog reported on April 25. As the PP Blog reported on May 15, the U.S. Securities and Exchange Commission has published TelexFree information in English, Spanish and Portuguese.

    NOTE: Our thanks to the ASD Updates Blog.

  • Katia Wanzeler No Longer In Custody Of U.S. Marshals Service

    UPDATED 11:49 A.M. EDT U.S.A. Katia Wanzeler, the wife of accused TelexFree Ponzi-schemer and alleged fugitive Carlos Wanzeler, no longer is in the custody of the U.S. Marshals Service (USMS). Whether she has concluded an appearance before a federal grand jury in Massachusetts is unclear.

    If the appearance occurred, it is possible it was delayed by 24 to 48 hours. Grand jury proceedings are secret.

    In a brief statement to the PP Blog late Friday afternoon in response to a question from the Blog Thursday inquiring about Katia’s whereabouts, the USMS in Boston confirmed only that Katia “was in U.S. Marshals custody from May 15-23.”

    Carlos Wanzeler, 45, is described as a fugitive by the U.S. Department of Justice. Katia, 49, was arrested May 14 on a material-witness warrant at John F. Kennedy International Airport in New York, and was issued a subpoena to appear before a grand jury on May 21 at 10 a.m., according to court records cited by her attorneys.

    On Wednesday (May 21), Katia’s attorneys argued in Massachusetts federal court that their client had not been brought back from New York by USMS to make the scheduled appearance.

    Kevin Neal, supervisory Deputy U.S. Marshal in Boston, said late Friday afternoon that “The Marshals Service does not disclose information related to individual prisoners, including details about prisoner transportation, for security purposes.”

    The office of U.S. Attorney Carmen Ortiz did not respond to a request for comment.

    Katia Wanzeler had been held at a detention center in New York.

    For background, see May 15 and May 19 and May 20 PP Blog posts.

  • BULLETIN: Nevada Public Utilities Commission Staff Recommends Denial Of TelexFree’s Telecom Application; ‘Financial Statements . . . Cannot Be Relied Upon At This Time’

    newtelexfreelogoBULLETIN: The staff of the Nevada Public Utilities Commission has recommended that TelexFree’s telecom application be denied, saying the firm filed the application and then almost immediately filed for bankruptcy protection.

    Based on the bankruptcy filing, the financial information provided by TelexFree during the application process “cannot be relied upon at this time,” the PUC staff said.

    Records in the state show that TelexFree applied to be a Nevada telecom provider on April 1, but filed for bankruptcy only 12 days later. Class-action litigants who’ve alleged racketeering at TelexFree have said “massive discrepancies” exist in the firm’s accounting.

    Meanwhile, the Nevada PUC staff said it was aware TelexFree had been charged civilly with fraud by the U.S. Securities and Exchange Commission and that its assets had been frozen. At the same time, the staff said it was aware TelexFree also is the subject of state-level civil action by the Massachusetts Securities Division.

    Moreover, TelexFree did not provide the required “biographies for its company officers or other relevant information” to verify assertions that it possesses the necessary technical capability to provide interexchange services in Nevada, the staff said.

    When the staff tried to call a toll-free number provided by TelexFree to verify the company had a working customer-service operation, “the call did not go through and Staff was unable to reach a company representative.”

    Among other things, TelexFree says this on its website (italics added):

    TelexFREE has suspended all business activity while we address certain issues in the Bankruptcy Court and address pending proceedings by the SEC and other government agencies. Since we are not currently in a position to support our network, it is likely Customers will experience either interruption or discontinuation of service. Independent Associates and Promoters should not be representing TelexFree on a going forward basis absent approval of a new compensation plan by the Bankruptcy Court.

    TelexFree also may face licensing challenges in Minnesota, Alabama and other states.

    MSD has alleged TelexFree was a combined pyramid- and Ponzi scheme that gathered more than $1.2 billion. The firm’s bankruptcy petition initially was filed in Nevada, but a judge there transferred the case to Massachusetts, which the SEC described as the company’s nerve center.

    Alleged TelexFree co-owners James Merrill and Carlos Wanzeler have been charged criminally in federal court in Massachusetts with wire-fraud conspiracy.

    See April 21, 2014, PP Blog story.

     

     

     

     

  • FBI, Homeland Security Establish Site, Questionnaire For TelexFree Victims

    In this TelexFree promo, former President James Merrill posed with a giant SUV.
    In this TelexFree promo, former President James Merrill posed with a giant SUV.

    The FBI and the U.S. Department of Homeland Security have established a website for individuals who believe they were defrauded by TelexFree, an alleged pyramid- and Ponzi scheme the Massachusetts Securities Division says gathered more than $1.2 billion.

    Here is a link to a statement by the FBI and DHS. The page includes a link to a questionnaire.

    Alleged TelexFree co-owners James Merrill and Carlos Wanzeler have been charged criminally with wire-fraud conspiracy. Merrill, 53, of Ashland, Mass., is jailed in the United States. Wanzeler, 45, of Northborough, Mass., is alleged to have fled to Brazil. The U.S. Department of Justice describes him as a fugitive.

    TelexFree, Merrill, Wanzeler and six other alleged TelexFree managers, executives or promoters also are defendants in a major civil prosecution by the U.S. Securities and Exchange Commission.

    By some accounts, TelexFree had between 700,000 and 1.5 million participants.

    From the FBI/DHS statement (italics added):

    The large number of possible victims necessitates that we ask for your assistance by completing the secure questionnaire online. Your responses are voluntary, but would be useful in the federal investigation and to identify you as a victim.

    The office of U.S. Attorney Carmen Ortiz of the District of Massachusetts is prosecuting the criminal cases against Merrill and Wanzeler.

  • TOPIC TELEXFREE: View Wall Street Journal Spreecast Featuring PonziTracker’s Jordan Maglich

  • UPDATE: TelexFree Figure James Merrill Will Remain Jailed; [MAY 21 DEVELOPMENT: Merrill’s Brother Subpoenaed In State Probe, Boston Globe Reports]

    breakingnews72(UPDATED 11:30 A.M. EDT MAY 21 U.S.A. See Update at bottom of this brief, originally published May 20.)

    TelexFree figure James Merrill was unable to persuade a federal magistrate judge to free him, the PP Blog has learned.

    Judge David Hennessy declined Merrill’s bail application today, the office of U.S. Attorney Carmen Ortiz said moments ago.

    Merrill, 53, was arrested and detained May 9 on wire-fraud conspiracy charges. TelexFree co-owner Carlos Wanzeler, 45, has been labeled a fugitive. Wanzeler’s wife Katia, meanwhile, was arrested last week and detained as a material witness.

    See May 16 PP Blog story. See related story dated today.

    May 21 update: The Boston Globe is reporting (see Globe Tweet in Comments thread below) that John F. Merrill, the brother of James Merrill, has been subpoenaed by the Massachusetts Securities Division led by Commonwealth Secretary William Galvin. John Merrill is a banker at Fidelity Bank.

    See March 9, 2014, PP Blog report. The report references a February 2014 document on file at the Washington State Utilities and Transportation Commission that purported to be a TelexFree LLC “Balance Sheet.” The document lists two accounts at Fidelity Bank and outlines purported TelexFree loans to other TelexFree-related enterprises, including TelexElectric LLLP, Telexfree Financial Inc., TelexMobile and Ympactus.

    When the Massachusetts Securities Division filed an action against TelexFree last month, the state alleged that TelexFree financial filings with the Washington State Utilities and Transportation Commission were at odds with information TelexFree had provided the investigators in Massachusetts.