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Tag: Eduardo N. Da Silva

  • SEC, Trustee, Defense Attorneys Mum On Possible Deeper Ties Between TelexFree And DFRF Schemes

    Daniel Fernandes Rojo Filho in a YouTube promo for the alleged DFRF Ponzi- and pyramid scheme.
    Daniel Fernandes Rojo Filho in a YouTube promo for the alleged DFRF Ponzi- and pyramid scheme.

    The SEC declined Friday to say whether two individuals named prospective defendants in a massive class-action lawsuit brought by the Trustee in the 2014 TelexFree bankruptcy case were the same two persons charged with securities fraud last year by the agency in the DFRF Enterprises/Daniel Fernandes Rojo Filho Ponzi- and pyramid-scheme case.

    On June 30, 2015, Gaspar C. Jesus, 54, of Malden, Mass., and Eduardo N. Da Silva, 40, of Orlando, Fla., were among the nine named civil defendants in the DFRF/Filho case. Jesus allegedly received $56,000 from DFRF; Da Silva allegedly received $221,000.

    Filho, also charged criminally, “orchestrated” the DFRF scheme with the “assistance” of Jesus, Da Silva and others, the SEC alleged at the time. The agency also has referred to Da Silva as simply “Silva.”

    Promoters who move from one online investment fraud scheme to another and help scammers grease HYIP Ponzi wheels have posed a longtime problem. Both TelexFree and DFRF largely were aimed at Spanish- and Portuguese-speaking communities, the SEC has alleged.

    And that’s not all they had in common. Investors in both MLM-style “programs,” according to court filings, sometimes paid their sponsors directly, rather than paying the companies.

    “The amount of checks and cash that the individual defendants collected directly from investors is currently unknown,” the agency said about DFRF and how money entered the system last year.

    Such mechanics can led to secret deal-making and the siphoning of funds by insiders, creating smaller frauds inside of larger ones.

    On April 4, 2016, TelexFree Trustee Stephen B. Darr asked Chief Bankruptcy Judge Melvin S. Hoffman for permission to amend a defendant class-action case to include dozens of additional defendants alleged to be “winners” in the scheme.

    Among the proposed additional defendants were “Gaspar Jesus” of Lynn, Mass., and “Eduardo N. Silva” of Orlando, Fla.

    As noted above, the SEC declined to say whether the individuals were the same ones named in the DFRF/Filho case.

    Jonathan Shapiro, a Boston defense attorney representing Gaspar C. Jesus in the DFRF/Filho case, said on Friday he “cannot confirm that the person named in the [TelexFree] bankruptcy matter is the same person I represent in the DFRF matter.”

    On Saturday, Martin R. Rosenthal, a Boston attorney representing Eduardo N. Da Silva in the DFRF/Filho case, said he had “no comment” on whether his client was the same individual named in the Trustee’s proposed amended class action.

    Darr has alleged Eduardo N. Silva received more than $2.4 million from TelexFree. Gaspar Jesus was alleged by Darr to have received $882,936. The Trustee did not return a request for comment on whether the individuals were the same ones named in the SEC’s fraud case against DFRF and Filho.

    The SEC previously tied DFRF/Filho to TelexFree defendant Sann Rodrigues.

    Both DFRF and TelexFree spread in part on YouTube.

    The surname “Filho” also is referenced among the alleged “winners” in Darr’s proposed amended class action, though not specifically Daniel Fernandes Rojo Filho.

  • BULLETIN: ‘The DFRF Fraud Is Much Larger Than It First Appeared,’ SEC Tells Court

    dfrflogoBULLETIN: (2nd Update 9:46 p.m. EDT U.S.A.) The SEC has gone to federal court in Boston, alleging that “the DFRF fraud is much larger than it first appeared.”

    The agency also alleges that at least one DFRF investor told investigators that he first heard of DFRF in May or June 2014 from TelexFree Ponzi- and pyramid figure Sann Rodrigues, who attended the same church. If the information is correct, it would mean that Rodrigues had knowledge about DFRF within weeks of becoming a defendant in the SEC’s April 2014 action against TelexFree.

    SEC investigators initially tied Rodrigues to DFRF and alleged operator Daniel Fernandes Rojo Filho in a complaint last month. New documents filed by the agency yesterday hint that other DFRF insiders also were involved in TelexFree.

    Filho, described by federal prosecutors in Boston as a fugitive, was arrested July 21 in Boca Raton, Fla.  on a DFRF-related charge of wire fraud. The FBI is leading the criminal investigation.

    From an SEC investigator in a July 23 filing in the agency’s civil case against DFRF Enterprises, Filho, Wanderley M. Dalman of Revere, Mass.; Gaspar C. Jesus of Malden, Mass.; Eduardo N. Da Silva of Orlando, Fla.; Heriberto C. Perez Valdes of Miami; Jeffrey A. Feldman of Boca Raton; and Romildo Da Cunha of Brazil (italics and bolding added/light editing performed):

    Another investor (hereafter “Investor B”) told me that he and his spouse invested a combined $61,000 in DFRF. He first heard about DFRF in May or June 2014 from Sanderley Rodrigues de Vasconcelos (“Rodrigues”). (Rodrigues is the subject of a 2007 consent judgment in a Commission enforcement action concerning the “Universo Foneclub” pyramid scheme and a defendant in the Commission’s pending action concerning the “TelexFree” pyramid scheme.) Investor B knew Rodrigues from his participation in TelexFree and as a fellow member of his church.

    Rodrigues told Investor B that the minimum investment in DFRF was $50,000. Investor B decided not to invest at that time.

    Investor B told me that in July or August 2014, defendants Dalman, Jesus and Silva approached him about investing in DFRF. He knew the three men through TelexFree, because when TelexFree was operating, he would meet with individuals involved in the company on a weekly basis at a hotel in Revere.

    Dalman, Jesus and Silva told Investor B about DFRF, explaining that Investor B could earn up to 15% per month. They also told him that he could earn a 10% commission for referring others to DFRF.

    Investor B told me that Dalman, Jesus and Silva invited him to meet with Filho at a hotel in Boston, Massachusetts in July or August 2014, which he did.

    Investor B told me that, in September 2014, he and his spouse went to a meeting at DFRF’s offices at 60 State Street in Boston. Six to ten other potential investors attended this meeting, at which Dalman, Jesus and Silva spoke about DFRF. Filho later joined the meeting and gave a presentation about investing in DFRF. One of the other attendees asked Filho how DFRF could afford to pay 15% per month. Filho responded that he could take the investors’ money and grow it by a factor of six.

    The Rodrigues tie to DFRF now brings the number of fraud schemes in which he has been involved at least to four: Universo, TelexFree, DFRF and IFreeX, described last year by Massachusetts investigators as a TelexFree reload scheme. By victims count, TelexFree may be the largest Ponzi/pyramid scheme in U.S. history, rivaled only by Zeek Rewards in 2012.

    Rodrigues, a Brazilian, is not a U.S. citizen. He was arrested at a New Jersey airport in May 2015, upon his return from a trip to Israel. He was charged criminally with immigration fraud, amid allegations he lied to get a green card.

    Like DFRF’s Filho, Rodrigues had addresses in Massachusetts and Florida. Filho also is a Brazilian.

    Prosecution filings today in the criminal case against Filho assert that he is not a U.S. citizen. He has not been charged with an immigration crime and apparently has a driver’s license issued by a U.S. state, given that he has been seen driving a Lamborghini in Florida.

    SEC: DFRF Fraud Numbers Rise

    The SEC initially pegged DFRF last month as a fraud that had hauled about $15 million. But further investigation has led to higher numbers — in both total haul and the sum Filho is alleged to have siphoned.

    Dealing with Filho first, who was alleged last month to have siphoned more than $6 million.  From an SEC filing yesterday (italics added):

    The documents we reviewed indicate that, since June 2014, Filho has taken more than $8.6 million from DFRF accounts for himself or his family: He has withdrawn more than $2.7 million in cash. He has used DFRF funds to pay more than $2.2 million of personal and family expenses. He has used DFRF funds to pay more than $2.5 million for luxury automobiles (a 2014 Rolls Royce, a 2015 Lamborghini, a 2014 Lamborghini, a 2013 Mercedes, a 2012 Ferrari, a 2006 Ferrari, a 2015 Cadillac, and a 2014 Cadillac) and automotive-related expenses. He has used DFRF funds to pay nearly $250,000 to members of his extended family. He has used DFRF funds to send more than $1.1 million to the IOLTA account of an attorney in Hollywood, Florida. On June 30, 2015, he used DFRF funds to wire more than $1.1 million to an entity in the Bahamas that is believed to be a law firm. Some of these figures are probably too low, because the documents we have received to date are insufficient to classify approximately $3.5 million of withdrawals from DFRF corporate accounts in June 2015.

    Now, dealing with DFRF, alleged last month to have hauled $15 million. From an SEC filing yesterday (italics added/light editing performed):

    The documents we reviewed indicate that, from June 2014 through June 2015, DFRF received approximately $22.8 million from more than 1,750 investors:  The total may be slightly low, because the documents we have received to date are insufficient to classify approximately $160,000 of deposits to DFRF corporate accounts in June 2015.

    The documents we reviewed indicate that none of the investors’ money has been used to conduct gold mining in Brazil and Mali, and that DFRF has received no proceeds from gold mining operations.

    The documents we reviewed indicate that DFRF has received no proceeds from a line of credit with Platinum Swiss Trust and has had no banking transactions at all with that company.

    The documents we reviewed indicate that DFRF has spent nothing on charitable activities in Africa or anywhere else.

    The documents we reviewed indicate that, from June 2014 through June 2015, DFRF had no independent source of revenue except the money received from investors.

    The documents we reviewed indicate that, from June 2014 through June 2015, DFRF paid approximately $1.94 million to approximately 250 likely investors for the return of investor principal or purported monthly payments.

    Heriberto Valdes, who allegedly hauled $551,403 out of DFRF, has not been served the complaint, the SEC said.

    “Valdes is the only defendant who has not been served and whose location is unknown,” the agency said.

    Records suggest that Valdes, like Feldman, has a criminal record.

    NOTE: Our thanks to the ASD Updates Blog.

  • URGENT >> BULLETIN >> MOVING: SEC Charges DFRF Enterprises In Ponzi- And Pyramid Scheme Case; Agency Ties TelexFree Figure Sann Rodrigues To Charged DFRF Operator Daniel Fernandes Rojo Filho

    breakingnews72URGENT >> BULLETIN >> MOVING: (15th Update 4:43 p.m. EDT U.S.A.) The SEC has gone to federal court in Massachusetts, charging DFRF Enterprises and alleged operator Daniel Fernandes Rojo Filho with operating a combined pyramid- and Ponzi scheme targeted at “Spanish and Portuguese-speaking communities in Massachusetts, Florida, and elsewhere in the U.S.”

    Six alleged promoters also were charged.

    In its complaint, the SEC ties Filho to Sann Rodrigues, a figure in the TelexFree Ponzi- and pyramid-scheme case filed by the agency last year in Massachusetts.

    A stunning allegation from the SEC complaint (italics added/light editing performed):

    . . . Filho has caused DFRF to pay more than $310,000 for the benefit of Sanderley Rodrigues de Vasconcelos (“Rodrigues”). Rodrigues is the subject of a 2007 consent judgment in a Commission enforcement action concerning the “Universo Foneclub” pyramid scheme, and he is a defendant in the Commission’s pending enforcement action concerning the “TelexFree” pyramid scheme. On March 21, 2015, Filho caused DFRF to pay $50,000 to a business belonging to Rodrigues. (The payment was made less than one month after Filho publicly denied any link between DFRF and TelexFree.)

    On March 30, 2015, Filho caused DFRF to pay $100,000 to the same business. On April 2, 2015, Filho caused DFRF to supply more than $160,000 so that another business belonging to Rodrigues could purchase a 2008 Lamborghini sports car. There is no evidence that Rodrigues provided any services or other benefit to DFRF.

    All in all, according to the SEC, Rodrigues received more than $310,000 from DFRF’s fraud scheme. He has claimed he received at least $3 million from TelexFree.

    After Rodrigues was arrested in the United States in May on charges of immigration fraud, he asserted his current income was $80,000 a year, according to court filings. He also claimed to own two homes — one in Massachusetts and one in Florida — free and clear.

    The PP Blog reported on June 30 that a wanted notice on INTERPOL’s website said Rodrigues was being sought by Brazil for “Tax Evasion and not obey[ing] a Judicial Order.” Though granted conditional bail in the immigration case, Rodrigues now is being held in the United States on Brazil’s warrant.

    He also is implicated in a scheme known as IFreeX, the subject of a warning by the Massachusetts Securities Division last year.

    The British Columbia Securities Commission issued a fraud warning against DFRF in May.

    In the SEC complaint filed under seal June 30 and made public today, the agency described DFRF as an ongoing offering fraud and Filho as a thief who had siphoned investors’ outlays from the scheme.

    “Filho has also used the investors’ money for his personal benefit,” the SEC charged in its 22-page complaint. “Since June 2014, he has siphoned more than $6 million out of DFRF — approximately 40% of the total received from investors. This includes more than $1.8 million in cash withdrawals, approximately $1.8 million for personal expenses (including $500,000 for travel), and almost $2.5 million to acquire a fleet of luxury automobiles.”

    The scheme allegedly gathered about $15 million, the SEC charged.

    “DFRF and its operators falsely claimed that they were running a lucrative gold mining business when in reality they were operating a Ponzi and pyramid scheme that preyed on investors in particular ethnic communities who stand to lose millions of dollars,” said John T. Dugan, associate regional director of the SEC’s Boston Regional Office.  “Investors were not given the full story about the true value and security of their investments.”

    Charged promoters include Wanderley M. Dalman of Revere, Mass.; Gaspar C. Jesus of Malden, Mass.; Eduardo N. Da Silva of Orlando, Fla.; Heriberto C. Perez Valdes of Miami; Jeffrey A. Feldman of Boca Raton; and Romildo Da Cunha of Brazil.

    On Jan. 19, 2015, the PP Blog reported that DFRF was the apparent sponsor of an event in Florida that featured an appearance by Brazilian racing legend Emerson Fittipaldi. Sann Rodrigues — now jailed in the United States on a warrant from Brazil — also was seen with Fittipaldi.

    Like Rodrigues, Filho is a Brazilian who has conducted business in the United States. He previously was linked to the noxious Evolution Market Group/Finanzas Forex case in 2010. The PP Blog first wrote about Filho more than five years ago, in May 2010.

    A federal judge has approved an asset freeze in the DFRF case, the SEC said.

    BehindMLM.com reported in May 2015 that DFRF had dropped the names of the SEC and the FBI in a YouTube sales pitch uploaded in December 2014.

    From a statement today by the SEC (italics added):

    The SEC alleges that DFRF Enterprises, named for its founder Daniel Fernandes Rojo Filho, claimed to operate more than 50 gold mines in Brazil and Africa, but the company’s revenues came solely from selling membership interests to investors and not from mining gold. With the help of several promoters, they lured investors with such false promises as their money would be fully insured, DFRF has a line of credit with a Swiss private bank, and one-quarter of DFRF’s profits are used for charitable work in Africa. The scheme raised more than $15 million from at least 1,400 investors by recruiting new members in pyramid scheme fashion to keep the fraud afloat, and commissions were paid to earlier investors in Ponzi-like fashion for their recruitment efforts.

    Rodrigues is not listed as a codefendant in the SEC’s case against Filho and the other defendants.

    But the agency alleged that DFRF also had paid those defendants. Since June 2014:  “approximately $521,000 to Valdes, $252,000 to Feldman, $221,000 to Silva, $56,000 to Jesus, $51,000 to Dalman, and $33,000 to Cunha.”

    As was the case with TelexFree, some investors paid their sponsors directly, instead of paying DFRF, the SEC alleged.

    “The amount of checks and cash that the individual defendants collected directly from investors is currently unknown,” the agency said.

    Included among a “a fleet of luxury automobiles” acquired by Filho from investors’ money were a 2014 Rolls Royce, a 2015 Lamborghini, a 2014 Lamborghini, a 2012 Ferrari, a 2006 Ferrari, a 2013 Mercedes, a 2015 Cadillac and a 2014 Cadillac, the SEC charged.

    Read the SEC’s DFRF complaint.