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  • Scrutiny Of TelexFree Intensifies; 2 European Police Agencies Issue Warnings And Say Madeiran Community At Risk

    Carlos Costa.
    Carlos Costa.

    Updated 9:45 a.m. (Feb. 27, 2014, U.S.A.) Police who serve Portuguese-speaking residents in two British Crown dependencies — the States of Jersey and Guernsey — have issued warnings on the TelexFree scheme. News of the warnings was published on BehindMLM.com.

    Brazil-based TelexFree executive Carlos Costa waved the flags of Portugal and Madeira in a curious TelexFree cheerleading promo last year about a bankruptcy filing. Jersey Police specifically referenced the Madeiran community in the agency’s warning. So did Guernsey.

    After the bankruptcy claim involving a TelexFree arm in Brazil known as Ympactus Comercial Ltd., TelexFree became a sponsor of the Botafogo football club in Rio de Janeiro — apparently through one of its U.S. arms.

    From a statement by Jersey Police (italics added):

    The States of Jersey Police have been made aware of a potential fraud which is targeting Jersey’s Madeiran community.

    Guernsey Police have issued a similar appeal.

    The scheme is under a company name of TELEXFREE and would require initial investments with the promise of big returns.

    The scheme originated from Brazil and is currently being investigated by the Brazilian authorities as it is believed to be fraudulent.

    Jersey Police know that islanders have been approached to “invest” in the scheme, but as yet have not had any contact from victims of the scam.

    If anyone in Jersey has invested money into a TELEXFREE scheme they should contact the Joint Financial Crimes Unit on Tel: 01534 612250 (during office hours) or Police headquarters on 01534 612612 (at other times).

    Guernsey Police also referenced its Madeiran community in the agency’s Feb. 19 warning posted on Facebook (italics added):

    Guernsey Police have been made aware of a potential fraud which was intended to specifically target Guernsey’s Madeiran community.

    The scheme was under a company name of Telexfree and would require initial investments with the promise of big returns.

    The scheme originated from Brazil and is currently being investigated by the Brazilian authorities as it is fraudulent.

    If anyone in Guernsey has invested money into a Telexfree scheme they should contact Sgt Snowdon in the Financial Intelligence Service on 01481 755812.

    TelexFree, which might represent a form of affinity fraud and is under investigation in Brazil amid pyramid-scheme allegations, appears first to have targeted Portuguese-speaking populations in Brazil and Europe. TelexFree is based in the Boston region, which has a considerable population of Brazilians.

    Sann Rodrigues, a purported TelexFree millionaire, is one of the “program’s” top hucksters. He was successfully sued by the SEC in a 2006 case that alleged he presided over a pyramid scheme and engaged in affinity fraud.

    At the time, Rodrigues, also known as Sanderley R. De Vasconcelos, advised the court that he was unable to pay a considerable portion of the sanctions against him.

    TelexFree says Rodrigues is among the headliners at a rah-rah session in Spain March 1 and 2. As things stand, that event now will take place against the backdrop of the warnings in Jersey and Guernsey and the possibility of increased scrutiny in Portugal and the United States.

    Some U.S. promoters have claimed that $15,125 sent to the firm triples or quadruples in a year. TelexFree says it is in the VOIP business and claims it is expanding into cellphones and credit repair. Why a purported communications business would get into credit repair is unclear.

    Some members of the AdSurfDaily Ponzi scheme broken up by the U.S. Secret Service in 2008 were in purported credit-repair and debt-elimination businesses.

    See March 3, 2009, PP Blog story on a bizarre “twenty-one dollars in silver coinage” claim that appeared in the context of ASD.

     

  • UPDATE: Promoters May Be Lobbying TelexFree To Keep Ponzi Scheme Intact

    Some TelexFree members may be unhappy if the "program" changes its compensation plan. Source: Screen shot of Blog at Blogspot.com.
    Some TelexFree members may be unhappy if the “program” changes its compensation plan. Source: Screen shot of Blog at Blogspot.com.

    Updated 8:36 a.m. ET (Feb. 26, U.S.A.) Some TelexFree promoters may be lobbying the company and Brazil-based executive Carlos Costa to keep its original Ponzi scheme intact, according to a Blog post (in Portuguese) observed by the PP Blog this morning.

    BehindMLM.com reported on Feb. 19 that TelexFree may be in the process of changing its compensation plan. Details remain murky. It is common for fraud schemes that either know they are under scrutiny or sense they soon will be to change rules or make cosmetic tweaks to keep money coming in.

    After-the-fact changes, however, cannot unring bells of HYIP fraud that already have been rung. And the changes sometimes introduce new disguises designed to sustain a Ponzi deception.

    TelexFree, alleged in Brazil to be a pyramid scheme, has been under investigation in that country since at least June 2013. In the AdSurfDaily and Zeek Rewards Ponzi/pyramid cases in the United States, prosecutors said that both firms made cosmetic tweaks in bids to stay under the radar.

    Here is a Google translation from Portuguese to English of the Blog post that may signal that some TelexFree reps want the firm to cling to a Ponzi business model (italics added):

    Campaign advisers on social networks asking an unchanged Marketing Plan International Telexfree.

    And you, what do you think? Want to try the new plan Telexfree or would you change anything, because this plan is already excellent?

    Share if you do not want changes in Telexfree.

    Affiliates of online Ponzi schemes often claim their “program” is legal and excellent because it pays. But all successful Ponzi schemes pay. Bernard Madoff’s epic scheme “paid” — until it didn’t. And the Ponzi scheme of George Theodule aimed at Haitian immigrants also “paid” — until it didn’t.

    Theodule, 52, was sentenced yesterday to 150 months in federal prison.

    “George Louis Theodule defrauded his victims out of millions of their hard-earned dollars,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.

    “[Theodule] did so by taking advantage of people who trusted him because of their cultural affinity,” Ferrer said. “Such tactics are intolerable, especially given that some of his victims lost their entire life savings. This sentence should send a strong message to those who prey on the trust of others: you will get caught and justice will be served.”

    Also on the Blog reporting potential dissatisfaction with TelexFree changes was a post on something called CicloFAST, possibly an emerging “opportunity” of some sort. The CicloFAST website prominently displays a photo of a MasterCard.

    Like TelexFree, CicloFast styles the last four letters of its name in uppercase — i.e. FREE and FAST. It was not immediately clear if the firms had a business relationship.

    Some U.S.-based promoters of TelexFree claim that $15,125 sent to the company effectively will triple or quadruple in a year. Among the firm’s key pitchman is Sann Rodrigues, a former SEC defendant in a pyramid-scheme and affinity-fraud case.

    Rodrigues, a purported TelexFree millionaire, has been billed by the firm as a headliner at a planned TelexFree convention March 1 and 2 in Spain.

    Any change in the TelexFree compensation plan could lead to questions about why Rodrigues was permitted to make large sums of money under a plan that now needs to be changed and whether less-successful affiliates now will be hamstrung even tighter.

    Some TelexFree promoters have demonized the Brazilian  prosecutors who brought the pyramid case in the state of Acre. It is common for HYIP scams to pander to the rank-and-file and to marry the processes of demonization and envy.

  • Hawaii Says Man Created 13 Fake Identities And Disguised Voice To Scam Elderly Woman Out Of $1.4 Million

    recommendedreading1Bing Long Yee was named in a Preliminary Order to Cease and Desist after securities investigators in Hawaii discovered he’d duped an elderly woman out of $1.4 million over a period of 15 years — in part by disguising his voice and adopting “as many as 13 different personas,” the Department of Commerce and Consumer Affairs said.

    The order was issued by Hawaii Commissioner of Securities Tung Chan. The state is asking “[a]nyone who has been solicited by or transacted business with Yee or who may have information regarding this matter” to contact the State Securities Enforcement Branch.

    Yee used the money for “gambling and personal expenses instead of investments,” the state said.

    From a statement by the state government of Hawaii (italics added):

    The order asserts that, from 1998 through February 2013, Yee solicited an elderly Hawaii woman to invest in an elaborate business venture. Yee allegedly told the woman that he ran various businesses, including real estate, jade stone exportation, and a restaurant start-up, and needed money to help fund his businesses.

    Yee allegedly created as many as 13 fake identities of individuals who were supposedly involved in his businesses and he assumed at least three different personas by disguising his voice while on the phone with the woman. As a result, the order alleges the woman provided a combined total of $1,414,145 to Yee for investment in his businesses.

    The order further alleges that none of the woman’s money was used as promised. Instead, Yee allegedly spent all $1,414,145 to gamble at casinos in Las Vegas and on personal living expenses. To date, the woman has not received any of her principal or promised returns.

  • Quebec Issues Warning On ‘Affluential Group Corp.’

    cautionflagThe Autorité des marchés financiers (AMF) says an entity known as “Affluential Group Corp.” is soliciting illegally in Quebec.

    AMF conducted cybersurveillance and discovered online ads for Affluential Group and is seeking “orders to cease the solicitation, remove the ads and close Affluential Group Corp.’s website,” the agency said.

    In addition, the agency said, AMF is seeking “to impose administrative penalties on the firm and its two officers, Ali Haida Tarafdar and Sean Pugliese.”

    “Advertisements posted on classified ad websites target consumers with $20,000 to $25,000 to invest, and promise investment returns of 12% to 25% within six months,” AMF said.

    From an AMF statement (italics added):

    Neither Affluential Group Corp. nor its representatives or directors, Ali Haida Tarafdar and Sean Pugliese, are registered with the AMF, and are therefore not authorized to solicit Québec consumers for investment purposes.

    Google search results show that at least one Affluential Group ad appeared on Craigslist before being deleted.

  • FOR SPANISH-SPEAKERS: Telemundo 39 (Dallas) Report On WCM777

    From a WCM777 pitchfest. Source: Telemundo (Dallas.)
    From a WCM777 pitchfest. Source: Telemundo (Dallas).

    Here is a link to a Telemundo 39 (Dallas) report on the WCM777 “program.”

    Link.

    The unofficial total of jurisdictions or regulatory agencies filing actions or issuing Investor Alerts against WCM777 stands at seven: The country of Peru, the state of Massachusetts, the state of California, the state of Colorado, the state of Louisiana, the state of New Hampshire, the province of New Brunswick.

    In addition, the Canadian Securities Administrators — an umbrella organization of 13 provinces/territories of Canada that is responsible for developing a harmonized approach to securities regulation across the country — has published the New Brunswick warning. The Better Business Bureau, meanwhile, has given WCM777 an “F,” its lowest score.

    Despite the regulatory actions, WCM pitchfests are continuing online.

    NOTE: Our thanks to a reader who let us know about the Telemundo report.

  • CBS-MIAMI: Man With Sword Threatened Supermarket Customers And Was Shot By Security Guard

    cbsmiamiArmed with a sword, Hector Hechavarria walked into the Presidente Supermarket in Miami’s Little Havana neighborhood, threatened to kill shoppers, knicked a customer in the elbow, assaulted a security guard — and eventually was shot by the same guard, CBS-Miami is reporting.

    The guard, according to the station, was Antonio Mendoza, 47. Police said his actions were heroic.

  • Anti-Defamation League, One Of First Groups To Warn Public About AdSurfDaily Figure Kenneth Wayne Leaming, Now Says ‘Sovereign Citizens’ Are Forming ‘Vigilante Grand Juries’ And Harassing Public Officials In New York, Florida And Elsewhere

    americaatrisk4Kenneth Wayne Leaming, the AdSurfDaily Ponzi story figure and purported “sovereign citizen” now serving eight years in federal prison in part for filing bogus liens against public officials involved in the 2008 ASD case, once claimed the federal judge in Washington state who presided over his criminal trial owed him 208,000 ounces of “99.9% fine silver.”

    Among Leaming’s bizarre claims was that the judge was “operating [a] SLAVERY SYSTEM, etc.” Leaming earlier tried unsuccessfully to sue President Obama and U.S. Attorney General Eric Holder. Among his bizarre claims in that now-dismissed case was that he and a co-plaintiff — a man in prison on federal tax charges — were owed 12,000 ounces of gold.

    After Leaming’s conviction in a 2013 trial in which federal prosecutors said he was channeling deceased cop-killer Christopher Dorner in the courtroom, the judge ordered the forfeiture of items seized from Leaming during an FBI probe of his activities in 2011. Those items included six firearms and police equipment, including badges, credentials, law-enforcement identification documents, light bars, crime-scene tape, handcuffs, vests and nightsticks.

    Leaming “client” files also were ordered forfeited. (Some ASD members said Leaming was performing legal work for them, even though he is not an attorney.)

    The Anti-Defamation League, which warned the public about Leaming before his name even surfaced in the context of ASD in 2010, now says a different group of purported “sovereign citizens” on the other side of the country is harassing a judge and court clerk in rural Greene County, N.Y. Greene County, in the Catskills, has a population of fewer than 50,000, according to its Wikipedia entry.

    From the ADL (italics added):

     . . . common law grand juries claim to have signed a “true bill” charging the chief clerk in Greene County with numerous “crimes” related to her alleged failure to file paperwork for the “grand jury,” according to ADL. They also “fined” a Greene County judge the amount of “100 ounces of silver,” citing 23 separate “violations” for failing to provide demanded documents and refusing to speak to their “board of review,” and allegedly sent harassing documents to a number of judges.

    And there might be trouble elsewhere, ADL says.

    “[C]ommon law juries in Marion and St. Johns counties in Florida sent a ‘Writ of Mandamus’ to county officials demanding a budget of $1.5 million, office space and equipment and a meeting room with a conference table and chairs,” ADL reports.

    Marion County is in North Central Florida in the Ocala region and has a population of about 335,000. St. John’s County is in Northeast Florida in the Jacksonville region and has a population of about 190,000.

    There have been reports of violence and extremely menacing behavior involving “sovereign citizens” in Florida. In March 2013, purported “sovereign” Jeffrey Allen Wright was shot to death after pointing a pistol at a sheriff’s SWAT team in Navarre, situated in the Florida panhandle. Wright was wanted on a warrant for counterfeiting.

    In November 2013, Tampa-region “sovereign citizen” Eric Holtgard was arrested twice in less than 24 hours, amid allegations he was menacing people with guns. In May 2013, purported “sovereign citizen” Bruce Chalmers Hicks of the Tampa region was arrested on charges that he was carrying a sidearm on the property of Turkey Creek Middle School in Plant City.

    Larry M. Myers, a purported “sovereign citizen” and fugitive, was sentenced in 2012 to 78 months in federal prison. Authorities said he was was member of a bogus entity known as “The Constitutional Court of We The People In and For The United States of America” and the “Constitutional Common Law Court.”

    “Myers and his co-conspirators mailed a CLC arrest warrant to a Chief Judge of a Florida State court,” the office of the Treasury Inspector General For Tax Administration (TIGTA) said. “They also issued a CLC contempt of court order and ‘militia’ arrest warrant to a District Judge.”

    “Sovereign citizens” have been claiming judicial and jury authority for years. ADL suggests these elements of the purported “movement” might be gaining steam.

    “Adherents of the sovereign citizen movement are forming their own vigilante “grand juries” in counties across the United States in an attempt to exact pressure on local government officials to accede to their anti-government demands and whims,” ADL said yesterday.

    “The sovereign citizen group behind this attempt to form bogus grand juries is the National Liberty Alliance, formed in 2011 as the New York Liberty Alliance by sovereign citizen guru John Darash of Poughkeepsie, NY,” ADL says. “It recently launched a nationwide effort to recruit new members, and Darash and his followers have spent most of their time establishing ‘common law grand juries’ in counties across the country. The Liberty Alliance boasts of having 852 county organizers in 36 states and nearly 2,000 members from coast to coast.”

     

  • UPDATE: Alleged ‘PhoneCard USA’ Ponzi Schemer Once Arrested In Brazil On Narcotics Charges Now Charged In United States With Possessing ‘Improvised Explosive Devices’

    ponzinews1Istvan Merchenthaler, the U.S.-based alleged “PhoneCard USA” Ponzi schemer who reportedly was arrested on narcotics-trafficking charges in Brazil a decade ago and later was linked to pipe bombs found in Pennsylvania and North Carolina, has been indicted on charges of possessing “approximately 60 plastic PVC pipe improvised explosive devices” plus “approximately 400 cardboard tube IEDs, a 9mm Cobray M-11 semi-automatic machine pistol, and ammunition,” federal prosecutors in the Eastern District of Pennsylvania said.

    “IED” stands for “improvised explosive devices.” Such devices have been associated with terrorism and guerrilla warfare. A common form is the roadside bomb.

    Merchenthaler, 43, additionally was indicted  in Maryland on two counts of being a fugitive in possession of firearms and ammunition and one count of possessing an unregistered destructive device. Further south, in North Carolina, Merchenthaler was indicted on two counts of being a fugitive in possession of firearms and ammunition and one count of possessing an unregistered destructive device.

    The IEDs, machine pistol and ammunition were found after the first of two Ponzi indictments against Merchenthaler was handed down in 2012. The Maryland and North Carolina cases have been consolidated and will be heard by U.S. District Judge Robert F. Kelly of the Eastern District of Pennsylvania.

    From a statement by the office of U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania (italics added):

    [F]rom at least about May 2006 to about February 2013, Merchenthaler claimed to be the founder of PhoneCard USA, a company that was purportedly a “premier distribution source” for prepaid phone cards and cell phones.  Merchenthaler, who used a number of aliases, falsely claimed that PhoneCard USA had “lucrative contracts” with major retail chain stores including Walmart, 7-Eleven, and BJ’s Wholesale Club.  Further, Merchenthaler falsely claimed to have friendships with executives at Walmart and 7-Eleven.  In reality, Merchenthaler operated a “Ponzi” scheme, stealing over $2 million from over 200 investors and using much of these funds for his own benefit and to perpetuate his scheme.

    Merchentaler allegedly possessed pipe bombs.

    In at least one promo by an apparent affiliate of the uber-bizarre MPB Today MLM “program” in 2010, pipe bombs were referenced — in the context of Walmart. An online promo for MPB Today claimed this (italics added):

    If you “hate Walmart and have written a 603 page manifesto on how Walmart is trying to take over the world and steal your soul,” you should “stop making that pipe bomb and read how you can avoid Walmart and still make bank,” according to the pitch.

    Like Merchenthaler allegedly did with PhoneCard USA, some MPB Today promoters claimed that the “program” had been endorsed by Walmart. It is common for scammers to imply ties to famous businesses.

    Indicted alongside Merchenthaler in the IED case was Ryan Joseph Hribick, 32, of Coatesville, Pa. He was charged with count of possession of unregistered firearms, one count of manufacturing and dealing explosive materials, one count of conspiracy to obstruct justice and one count of witness tampering.

    Hribick, prosecutors said, “instructed and conspired with others to destroy and conceal cardboard tubes and flash powder – which Hribick was using to manufacture IEDs – so as to keep that evidence from federal agents and the federal grand jury.”

    And Hribick “attempted to influence the testimony of a federal grand jury witness regarding the destruction and concealment of evidence,” prosecutors said.

  • Hawaii Prosecutor Says ‘Women’s Gifting Circles’ Pyramid Scheme Operating In State — Plus, Update On ‘Blessing Gold Club’

    recommendedreading1“Women’s Gifting Circles” or “Women Empowering Women Circles” pyramid schemes are operating in Hawaii, said Kauai Prosecuting Attorney Justin F. Kollar.

    “These schemes are marketed as a way to entice women through a tiered investment model, often using language that speaks in terms of ‘empowering’ women spiritually or financially,” Kollar said. “The people at the top of the pyramid collect money from those at the bottom of the pyramid, plain and simple. The people at the bottom are promised future rewards that are based on recruiting additional followers to start new circles. These schemes are illegal and are designed by predators to extract money from people who trust them.”

    A similar scam led last year to federal prison sentences for two Connecticut women. There were reports that  “Women’s Circle” scheme also was operating in British Columbia in Canada.

    From a statement today by Kollar’s office (italics added):

    In many cases, women who are being recruited are told not to talk about the circle for various reasons, or are told that the practices are legal as long as the dollar amounts are under a certain threshold. However, violators can be subject to criminal and civil penalties under State securities laws.

    In other cash-gifting fraud news, a source told the PP Blog today that members of a cash-gifting scam known as BlessingGoldClub are trying to offload “units” in the Better-Living Global Marketing HYIP scam for $500. The units purportedly are being discounted from $1,295.

    BLGM members have been fretting about not getting paid. The “program” is similar to the Zeek Rewards’ Ponzi scheme.

    TelexFree figure Scott Miller also has been a proponent of cash-gifting. Miller’s Facebook site for TelexFree, alleged in Brazil to be a massive pyramid scheme, appears not to have been updated since Jan. 10.

  • BULLETIN: Tata Group, Famous Business Concern In India, Says Fraudsters Trading On Its Name To Push HYIP Scheme; Purported Agriculture ‘Program’ Has Presence On The Ponzi Boards

    The purported TataAgro entity had a presence on the Ponzi boards and appears to have used trading screens to dupe the worldwide investing public. Image source: Google cache.
    The purported TataAgro entity had a presence on the Ponzi boards and appears to have used trading screens to dupe the worldwide investing public. Image source: Google cache.

    BULLETIN: (3rd Update 8:32 a.m. ET, Feb. 20 U.S.A.) The Tata Group, a global conglomerate based in India, says its name has been stolen by an HYIP Ponzi scheme. The fraud scheme is associated with a domain styled TataAgro.com and has a presence on the MoneyMakerGroup, TalkGold and DreamTeamMoney Ponzi forums, according to search results.

    Like the recently exposed WCM777 fraud scheme, the TataAgro scam claims a business presence in the British Virgin Islands. WCM777 also traded on the names of famous companies, including Siemens, the German conglomerate. Siemens issued statements warning the public about WCM777. Tata now has done the same thing with the purported TataAgro entity.

    The TataAgro website “claims that ‘Tata Agro Holding is a subsidiary of the globally known Tata group, [and is] one of the top 10 agro investment players in Asia’s financial market,’” the real Tata says. “It goes on to offer a wide range of investment plans with a monthly profitability of up to 100%.

    “Members of the public are hereby cautioned that the information provided on the website is absolutely false, misleading and intended to defraud innocent and unwary members of the public,” the real Tata says. “Neither Tata Sons nor any other Tata company has any connection whatsoever with the aforesaid Tata Agro Holding. Tata Sons is initiating appropriate action in the matter.”

    PonziTracker.com was among the first outlets to report the news of the Tata warning.

    The TataAgro site appears not to be loading.

    It is somewhat common for fraud schemes to try to steal the identities of major figures on the world financial stage. CONSOB, the Italian securities regulator, regularly publishes information on purported “opportunities” that adopt the names of legitimate firms to create confusion and fleece the masses.

    A post dated Dec. 3, 2013, at the MoneyMakerGroup Ponzi forum claims the purported TataAgro entity pays “1.9-3.1% daily for 15-90 days” and accepts Perfect Money, BitCoin, EgoPay and Qiwi.

    Meanwhile, a post dated Dec. 17 at the DreamTeamMoney Ponzi forum makes this claim (italics added):

    Tata Agro is an agricultural investment company founded in 2012 in British Virgin Islands. We are a subsidiary of transcontinental conglomerate Tata Group that has been established in India back in 1868 and now boasts the combined market capitalization of $96 bln.

    We have retained only the best things from a rich and long experience of our ancestor: the unique corporate culture, client-oriented and customized approach, and understanding of the market through retrospective analysis. Our fundamental aim is to help you grow your capital.

    We work with assets like barley, soya, soya oil and meat, corn, wheat, and livestock and currently operate in CME Group, TOCOM, and MGEX exchange houses.

    We are eager to offer you four investment plans with the daily ROI of 1.9% to 3.1% and investment term of 15 to 120 days. You can invest from 5 to 10,000 USD. Apart from that, we offer you a profitable referral program that lets you earn more and work side by side with your family and friends.

    A post dated Dec. 17 at the TalkGold Ponzi forum makes these claims (italics added):

    • Invest 5 to 100$ for 15 days and earn 1.9% ROI daily;
    • Invest 100 to 1000$ for 30 days and earn 2.3% ROI daily;
    • Invest 1000 to 5000$ for 60 days and earn 2.5% ROI daily;
    • Invest 5000 to 10,000$ for 120 days and earn 3.1% ROI daily.

    Collapsed fraud schemes such as Zeek Rewards, AdSurfDaily, Legisi, Pathway to Prosperity, Profitable Sunrise, Imperia Invest IBC and many more also had a presence on the Ponzi boards.

    The TelexFree “program” currently has a presence on the Ponzi boards.

  • TELEXFREE LA-LA LAND: Promo For Alleged Pyramid Scheme’s International Convention Is Voiced By Former SEC Defendant (In Pyramid-Scheme Case) — And Uses Images Of Pyramids Of Giza And American MLM Lawyer

    In a bizarre promo, Egyptian pyramids are being used as an art element by cheerleaders for TelexFree, an alleged pyramid scheme. Source: ConventionTelexFree.com. Red highlight by PP Blog.
    In a curious promo, Egyptian pyramids are being used as an art element by cheerleaders for TelexFree, an alleged pyramid scheme. Source: ConventionTelexFree.com. Red highlight by PP Blog.

    U.S.-based TelexFree, alleged in Brazil to be a massive pyramid scheme, is serving up a heaping helping of strangeness.

    For starters, a promo for TelexFree’s International Convention set for Spain next month is being voiced by Sann Rogrigues, whom the SEC successfully sued in 2006 amid allegations he was operating a pyramid scheme and engaging in affinity fraud aimed at the Brazilian community.

    The promo curiously is playing against the backdrop of an image of the Pyramids of Giza. For good measure, images of other famous world landmarks are thrown in. These include St. Basil’s Cathedral (near the Kremlin) in Moscow; Big Ben in London; The Eiffel Tower in Paris; the Empire State Building and the Statue of Liberty in New York; the Leaning Tower of Pisa; and the Burj al Arab Hotel in Dubai.

    TelexFree operates out of Marlborough, Mass., and Las Vegas in the United States. Its convention is scheduled for March 1 and 2 in Madrid.

    The promo in which Rogrigues dispenses the TelexFree convention wisdom appears on a website styled ConventionTelexFree.com. Among the claims on the site is that American MLM lawyer Gerald P. Nehra will be among the “Special Guests” at the rah-rah fest in Spain.

    American MLM lawyer Gerald Nehra will be a special guest at TelexFree's International Convention in Madrid next month, according to ConventionTelexFree.com.
    American MLM lawyer Gerald Nehra will be a special guest at TelexFree’s International Convention in Madrid next month, according to ConventionTelexFree.com.

    Serving as an expert witness for AdSurfDaily in 2008, Nehra opined that ASD was not a Ponzi scheme. ASD operator Andy Bowdoin, now serving 78 months in federal prison at the age of 79, later disagreed with his own expert. In 2012, Bowdoin admitted that ASD was a Ponzi scheme that had gathered $119 million and said the “program” never operated lawfully from its inception in 2006.

    ASD promoted a return of 1 percent a day. Some TelexFree promoters say that “program” triples or quadruples money in a year. Some promos solicit sums of $15,125.

    Nehra’s law firm also was touted by Zeek Rewards. In 2012, Zeek was accused by the SEC of operating a massive international Ponzi- and pyramid scheme that gathered hundreds of millions of dollars by planting the seed that returns would average 1.5 percent a day. At least two Zeek figures potentially now face prison sentences after pleading guilty for their roles in the scheme.

    The court-appointed receiver in the Zeek case says he’s on the brink of filing lawsuits against thousands of Zeek promoters.

    TelexFree appears recently to have begun operating under the name TelexFree International. Precisely where TelexFree International is based is unclear.

    In the past, Nehra has described himself an an attorney for “TelexFREE in the USA,” according to BehindMLM.com. Whether he represents the TelexFree International derivative is unclear. Convention promoters, however, appear to believe he does.