MLM Pro Ken Stewart Perspective On The Question Of TelexFree Being A Pyramid Or Ponzi

DS Edge Feb 2015

Well, here’s the latest ILLEGAL pyramid scheme (According to the regulatory body in Brazil) to hit Africa! It’s called TelexFREE! (I’ve been warning people for several months. As predicted, it’s now under investigation in both Brazil and the U.S., the only 2 countries where it claimed to be operating. If you are in any other country and promoting it, or you have been approached to join, it is NOT legally operating in your country, not to mention the fact that the program is likely to be hit for being an illegal pyramid scheme (see links below to articles) and here’s a number of reasons why!

First, as someone who has extensive experience in regulatory compliance and has interacted with agencies such as the FTC, SEC, and others prior to my network marketing career, as well as having over 30 years of experience in the network marketing industry and considered one of the industry’s top leaders and experts (my partner and I have a combined more than 65 years of network marketing experience, had groups generate over $2 billion in sales, we’ve earned millions of dollars, been featured in various industry publications and websites, experts in pay plans, regulatory compliance (done consulting work with 2 of the industry’s top attorneys over the past 15 years-one a former prominent state Attorney General and the other Herbalife’s lead international attorney for more than 20 years), and international expansion), first, contrary to claims by some distributors that it has been “approved” by the law/government in the U.S., there is NO U.S. regulatory agency that “approves” any specific network marketing company and/or opportunity! (The landmark FTC case involving Amway legitimized the concept of network marketing, but not any specific company!)

Second, the Telex FREE program has so many regulatory red flags it should at the front of a Russian parade! I’m surprised it took regulators in Brazil and the U.S. this long to initiate an investigation, and will be extremely surprised if they do not shut this company down for being nothing more than an internet money game, an ILLEGAL pyramid scheme.

Programs that have a one time cost of entry and no minimum monthly performance requirements in order to earn income are automatically considered to be ILLEGAL pyramid schemes by most regulators, especially when combined with various other factors that are mentioned below!

Head In Sand

Regulators like to see some minimum monthly performance requirements that you have to meet in order to justify you receiving an income, especially on people you don’t know! (For example, to avoid regulatory problems and to ensure that they had a minimum 3 to 1 customer (non-business participant) to distributor ratio, which regulators like to see, telcom opportunities like EXCEL and ACN resorted to a 6 customer rule in order for you to earn commissions and bonuses…it appears you can make money in Telex FREE for doing nothing more than recruiting someone-at least that is what a number of distributors are promoting, that you can make money without having to sell anything or recruit anyone, which automatically makes it an illegal pyramid scheme in the eyes of regulators (So, even if the company has a customer acquisition rule, if distributors are running around making statements that you can make money without having to sell anything, etc., regulators will still consider the program to be an illegal pyramid scheme!)

Furthermore, regulators like the FTC like to see a 50/50 split regarding the revenue coming into the network marketing company from which the commissions and bonuses are paid-50% from distributors and 50% from non-business participants…with such a huge emphasis on recruiting, I seriously doubt Telex would meet this threshold, especially outside of Brazil!

Third, a number of distributors are “guaranteeing” income, which now automatically qualifies whatever they are selling to be a “security” in the eyes of the SEC-only banks and approved financial institutions/firms can guarantee an income. In order to sell a “security,” one must have a securities license. When either the company, and/or you, can’t provide one, you’re busted! (This is one way they hit Zeek Rewards for being an illegal pyramid scheme!)

In addition, a number of people are promoting the buying of multiple positions (up to 11-cost of $15,000+), which will catch the attention of regulators, and subject them to illegal pyramiding charges, especially in combination with all of the above points already made!

This is nothing more than a $290 to $1200 internet money game/illegal pyramid scheme hiding behind a voip service and advertising concept in order to give it the appearance of legitimacy..First, they’re not an approved vendor for VOIP if the current news reports are accurate…second, what they are selling for around $50 a month (voip service through your mobile phone, etc.)you can get for free or considerably less from other voip/sip sources online.

Furthermore, programs like this (does Ad Surf Daily ring a bell?) with virtually an identical approach (get paid to post ads, while others to read ads, etc.) have been tried and NEVER succeeded! In fact, almost all of the well known programs have been shut down by regulators!

The Telex FREE program is now hitting a number of countries in Africa, where they are illegally operating in almost all of the countries where the TelexFree program is being promoted! (They do not have licenses to market telecommunications services, no business license or registration, etc.). It is ILLEGAL for a network marketing company and/or its reps to do public meetings where they sign people up, sell products or services, take people’s money, and pay commissions without being in the process of and/or having done all the necessary registration and compliance work to legally operate in that country.

Unfortunately, because most Africans (and this includes government regulatory agencies) have little to no knowledge about regulatory compliance as it pertains to network marketing, what constitutes a legitimate network marketing opportunity versus an illegal money game or illegal pyramid scheme, programs like Rocket Cash Cycler and Telex Free are free to hoodwink people into parting with hundreds to thousands of dollars of their hard earned money.

Perhaps most concerning, when experts like me try to warn them, they either want to argue, or ignore what they’re told or shown. Even after showing someone today 2 of the articles that show Telex Free is under investigation for being an illegal pyramid scheme in both Brazil and the U.S., the person wanted to ignore reality (saying the media is just looking to stir up trouble-LOL!) and simply accused me of talking “bad” about Telex Free (how convenient! Can’t argue with the facts and the legal basis for my statements, so they play the “you’re just badmouthing my company” card.). As we say in the U.S., “you can lead a horse to water, but you can’t make it drink!”

My response was, “Jim Rohn, one of my mentors and coaches over 30 years ago, once said, ‘If someone is headed down the wrong road, they don’t need motivation! What they need is an education in order to turn them around.’ All I’m trying to do is educate you as to why they’re now under investigation and why they’re likely to face illegal pyramiding charges…why is that important? Because regulators are now prosecuting people like you for promoting such programs! Australia recently arrested, jailed, prosecuted, and fined 3 top earners in Australia that were in TVI Express, with the fine being $200,000 U.S.D!” The same occurred in Canada a few years back with some of the top distributors who had been promoting SkyBiz. When will people ever learn?

I then posed this question to him: “If you were headed down a road you’d never driven on before, and you were coming up on a curve and driving too fast, would you want me to 1) try to warn you that at the speed you’re driving your car, it will go off the curve and down a cliff and you’ll be killed, or 2) simply watch you drive by and do nothing, knowing you’re about to take a curve at too high a speed and drive off the cliff? The answer is “Duh” (#1) if you have half a brain! However, there are a lot of stupid people in the world, and some people just have to learn the hard way, which will apparently be the case with those involved with Telex FREE, just like it was with TVI Express, JSS Tripler/Just Been Paid, Ad Surf Daily, Zeek Rewards, and the numerous other types of internet oriented and advertising deals that have come and gone!

Anyone involved with Telex FREE is either new to the industry and/or knows nothing about regulatory compliance as it relates to a network marketing company and opportunity!

P.S. The fact that you or anyone else is making money does NOT make the program legal nor legitimate! People make money all the time in money games and illegal pyramid schemes (It’s part of the lure to attract new people!), and the fact that it has been around for awhile doesn’t make it legal either! Doesn’t the Bernie Madoff case ring a bell? He was able to perpetuate his $50 billion illegal Ponzi/pyramid scheme for several decades before he got caught! LOL!

One final note-Telex FREE has now lost ALL appeals regarding their lifting of an injunction against them (See one of the article links below)…here is what the Telex lawyer reportedly said: “an injunction against the injunction needed to be granted because should TelexFree spend a few more days being prohibited from signing up new investors, they would have no money to pay the old ones.” What! He just described his program as being an illegal pyramid scheme! LMAO!

By the way, using terms like “investors” and “investment” is one of the biggest no no’s you can make in regards to describing and/or promoting a network marketing because it now automatically qualifies whatever you are selling to be a “security” and thus you now fall under the jurisdiction of the SEC in the U.S. and their regulatory equivalents in other countries (as well as other regulatory agencies like the FTC, the U.S. Postal Service, state Attorneys Generals, local district attorney and their consumer protection divisions, etc.) and when you can’t provide a securities license, you’re in big trouble! The fact their attorney would allegedly make such a comment using the term “investor” tells me their attorneys don’t know anything about regulatory compliance, and that is cause for concern as well!

Note: Here’s several other huge no no’s in the network marketing industry-using phrases like “guaranteed” when describing income or “guaranteed income” as well as “you don’t have to sell anything or recruit anyone and you can still make money,” any one of which or all of which are guaranteed to get you into regulatory trouble, especially with the SEC (you are now selling a “security” in their eyes), and automatically classified as a “money game” or illegal pyramid scheme! (Does Ad Surf Daily, Just Been Paid, JSS Tripler, Zeek Rewards, just to name a few, ring a bell? They would if you had any experience or knowledge of the network marketing industry, especially in the area of regulatory compliance!)

They will likely also get hit with the fact that either they knew their reps were making such statements and did nothing to either educate their reps about the use of such words and phrases and/or enforce any policies they might have had in place in this regard, which is bad news, or that they should have known! All one had to do is go on sites like Facebook and others or do a Google search to see how the program was being promoted by their reps, so they obviously had no compliance department to oversee the actions of their reps! Either way, it’s spells trouble!

One final comment-the fact the company allegedly diverted $88 million after a judge froze their assets/blocked payments won’t go over too well with the judge as it means they circumvented the judge’s ruling! Talk about a great way to piss off a judge! If they aren’t hit with contempt of court charges, I’ll be shocked!

I’m just amazed at the number of people who have little to no knowledge about network marketing, comp plans, regulatory compliance, etc., who want to argue with real experts! They remind me of some of the people on the Titanic-iceberg warnings, yet full speed ahead, bands playing, passengers dancing and drinking, oblivious to what lie ahead, and then wham-next thing you know the ship has sunk, and if you weren’t lucky enough or smart enough to get off the ship in time, you ended up in the icy cold water and died of hypothermia.

It doesn’t take a genius to see what is probably coming their way, and not from just regulators in Brazil and the U.S., but a number of other countries as well. In case you didn’t know, the U.S., Canada, Australia, and a number of other countries have now banded together to fight internet scams and illegal pyramid schemes, and when a regulator in one country initiates an investigation, especially if the company in question is based either in one of those other countries or in an off shore haven, he /she automatically notifies their regulatory equivalent in the other countries, especially the country that is the home of the company in question if its part of this regulatory alliance, so the action in Brazil and the U.S. is likely just the tip of the iceberg, the opening volley!

By the way, here’s 3 articles which mention the illegal pyramiding investigation regarding TelexFree! (A word to the wise if you are promoting TelexFree-either stop and wait for the dust to settle, or run from this program as fast as you can, and I’d suggest requesting a refund as well! Good luck on that one! Anyone who continues to promote TelexFree in lieu of the current investigations as well as the analysis provided above is simply a fool, and subject to being arrested, prosecuted, fined, and jailed should the hammer fall on the company. Just ask a few of the top distributors in SkyBiz in Canada, or 3 of TVI Express’s top earners in Australia who were! (They were hit with fines of $200,000 U.S.D!)

http://www.patrickpretty.com/2013/07/03/report-telexfree-diverted-88-million-after-brazilian-judge-blocked-payments/ and http://www.patrickpretty.com/2013/08/14/report-telexfree-has-no-license-to-offer-voip-services-in-brazil-claim-reminiscent-of-u-s-government-assertion-against-adsurfdaily-ponzi-schemer-last-year/ and http://mlm-networkmarketingnews.blogspot.com/2013/07/telexfree-injunction-denied-bbom-denies.html

REPORT: TelexFree Diverted $88 Million After Brazilian Judge Blocked Payments

www.patrickpretty.com

that provided a guaranteed payout of at least $1,100 per week for a year to individuals who sent in $15,125 for the purchase of a ?contract.? TelexFree has been under investigation in Brazil for weeks.

Troy Dooly

Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies. Dooly is a speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network. He is a founding member, and currently serves on the Board of the Association of Network Marketing Professionals

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Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies. Dooly is a speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network. He is a founding member, and currently serves on the Board of the Association of Network Marketing Professionals

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35 thoughts on “MLM Pro Ken Stewart Perspective On The Question Of TelexFree Being A Pyramid Or Ponzi

  1. Greetings from Brazil. Great article Troy! It will help many people around the world. Keep up the good work. Cheers!

  2. HELLO, nice text, friend! I´d like to know if-s really telexfree under investigation on us by FTC and SEC. It´s official?
    thanks!

  3. Hello I need to know if it´s really true that FTC and SEC are investigating telexfree in US too!? Thanks! nice article! helps a lot!

    • In most cases we only know these things when they are made public. Rumors are starting to surface of someone investigating, but I have not heard that from insiders.

      • Thanks troy! If you heard anything official, please, let us know! Love your job and yours articles! There Are aLways hot news here!

      • lol… Well first of all this website is not a Watchdog site. http://www.MLMWatchdog.com is a watchdog site.

        Second, I was NOT fined for any of the information we have published on this website.

        Third, I have NEVER been involved with a ponzi scheme nor has any company I own or have a controlling interest in been involved with a Ponzi scheme.

        And lastly, although that article is well written, it is far less informative than what Patrick Pretty wrote or Oz at Behind MLM.

        And, if you have taken time to read the public coverage I did talking about the SEC Sanction, then you should have already read the full settlement and would know exactly what happened.

  4. Telexfree has launched in Uganda, East Africa and hundreds of people are joining everyday. Please advise on how we can help these people.

  5. It’s better to refer people to something where 100% are making money or to a TYPICAL MLM where 95% of people LOSE money immediately after joining, without possiblity to get it back, because they can’t recruit… TELEXFREE is 10x better than any other MLM company. Money is a PYRAMID too, just look on the 1$ bill.

    • Why is it, that people always quote this 95% failure percentage?

      Tommy, can you show me valid documentation used by any regulatory body showing a 95% failure rate?

      And TelexFree at least in some parts of the world has been found by regulators to be a ponzi scheme.

      So even if your statement was true, and it is not, then the regulators who view my site daily, will not add you to their list of people promoting a ponzi or potential ponzi in their country.

      So I caution you to be careful how you promote any business you are a part of.

      • Thanks for the reply.

        Just look at income disclaimers of Wake Up Now, Monavie, Organo Gold, Empower Network, it shows everything…

        Most of MLM companies do not shows their “income disclaimers” with detailed statistics, because it is a “bad” side of this bussiness. Everyone can check these stats, by failure I mean make less than $100 a year, actually it seems like this: 80% lose money (make less than a starter package), 10% break even, 9% break even + make something like $xx a year, 1% maybe $xxx a year, 0,1% around $1k or more. These are good stats, usually it is way worse, where starter packages cost $300-$1500, not to mention a monthly qualifications… So for me, this industry should change, most of MLM compensation plans are created in a bad way, this is not people fault, but companies who creates them.

        TelexFREE makes money almost for all people and a lot of people made fortunes here. There is no failure at all, mathematically impossible… How it looks in a typical MLM company? Thousands of negative comments like a “pyramid scheme” or “I lost $xxxx dollars here” and it always happens, because it’s guaranteed by compensation plan. So it’s better to recommend to our friends, family spending of $300 for a typical MLM or “Revshare” company like TelexFREE? The answer is simple…

        I am not in TelexFREE, I want to join and I am researching now the whole Internet about it. This article is the best one, because is written by someone who is very experienced. TelexFREE plans to launch a new website and products in 2014 (e.g. TelexMobile), so would be better if I wait to this time. Maybe they also change their compensation plan to make it 100% legal in USA, who know…

        Thanks for Your Time!

        Best Regards,
        Tommy

        • I can understand where you are coming from. However, in your argument, you are assuming that “failure” in MLM is because people are not earning $100. However, statistical data shows that the majority of people who join a network marketing company are not there to earn money. They are there to get their product/services for free or a discount.

          And when you take an IDS and look at the amount of time each data point applies to the business, the statistics stand strong.

          Many who argue based on the money point miss this. Just because it seems like a majority of people are making money in a company isn’t any more of a benchmark for stating the company is legit and strong, as stating the majority of he people are not making money.

          Telexfree, specifically has issues in the business model in several countries, specifically in South America.

          In the States they have not been hit with any public investigation. However, their requirement that each rep must pay 20% of their annual earnings to continue in the program, could be seen by regulators as a franchise fee. And that will present a whole new set of issues.

          • Thank You for the reply.

            It may be true that some people are joining MLMs to use a products/services. But most of companies and people advertise them as a business opportunity. It is rarely to see someone who advertise only same products, without income possibilities. This is why I am talking about money side. But MLM is like a having own business where success rate is similar…

            I would be very grateful if You could tell me something more about legality of promoting programs like TelexFREE. A lot of people started promote this company from begining without knowledge about it legality. If SEC or any other company will shut down TelexFREE, people who made money may be sued for this? And they may be asked for returning the whole money? That happened with Zeek Rewards, but their business model was completely different, illegal bid auctions, false investments etc. How it looks here?

            Do You heard about LibertaGia or WCM777? (similar business models to TelexFREE). What do You think about them?

            Thanks for Your time, I am really appreciate it.

            Best Regards
            Tommy

          • Tommy, I see your point. However, the majority of direct selling companies don’t just push the income opportunity. However, if all we are looking at is the income side, then that may be all we see.

            The people who are selling products are not advertising a business opportunity. SO if you are not looking for products from a specific company, or a product for a specific issue, you may not ever see anyone advertising the products.

            I have a personal friend who earns five figures monthly from nothing but product sales off his website. He doesn’t want to build a team.

            I have several other friends who make six figures yearly doing nothing but selling products through the parties they hold.

            I do agree that if one builds a network of independent professionals who are in turn selling and building their own network then more income can be earned. But most will not work that hard.

            And I will also agree that those who only market the income opportunity case issues, because they never grow, and jump from company to company, then tell people “network marketing doesn’t work. ”

            I have not heard of LibertaGia, but I have heard of WCM777. We have some articles under Ponzi/Pyramid Schemes on WMC777 and TelexFree

          • Thank You again for the answer. You have changed my mind a little about MLM opportunities.

            I would like to see what products are sold by Your friend. Can You please show me his website?

            In what campanies Your friends are involved? I may be interested in joining, because I am looking for the best company for 18 months… To this time none of them met my expectations (valuable and quality products, fair compensation plan, non-saturated market, trusted CEO etc.).

            I have a 8 years of experience in Internet Marketing and I am looking for a more stable business (I am currently in affiliate marketing, trading). Something like LiveSMart360 seems good for me.

            btw. TelexFREE was voted as the best company in 2014 out of 500+ others companies.

            Have a nice day!
            Tommy

  6. If Telexfree were a illegal pyramid, why they are still fighting in Brazil, for several months?. Spending a big money in lawyers keep fighting and the goverment can’t prove that is illegal.

    • Heck, Burn Lounge is still fighting in the US, and they were hit in 2006.

      Now Peru is looking into things publically.

      Just because a company fights doesn’t mean they are not a pyramid or Ponzi.

      And while they are fighting they are able to continue to collect funds outside the country. And from my understanding the money held in Brazil is enough to fight for!

      I just don’t see based on the court docs, anyway of winning in Brazil.

      If I were them, I would do everything I could to get legal in the USA and build it right.

  7. Greetings from Portugal. Nice article. I don’t know the law and I am not a MLM professional. But I am a Telexfree promoter / reseller / whatever it’s called. I do sell VoIPs and I don’t recruit much. Overall, the product is as good as skype in most aspects, but cheaper for a 3.000 minutes plan/month. I use it and I am happy with it.

    About the Opportunity, it’s said that you join for $50 and buyi a stock of products for $1375 and get $5200 a year income. That is NOT ALL TRUE. It’s not 200%+ profit. Actually, it’s a ton less.

    Let’s put it by weeks. It’s pays $100 per week, so it costs 14 weeks to join.
    year has 52 weeks, but first 2 weeks you get nothing, so 50 weeks counts.
    you have to pay back 20% by the end of the year, so 10 weeks
    and you have to join again, so another 14 weeks
    and you have to pay taxes for the 50 weeks, about 6 weeks
    TOTAL COST is: 14 + 10 + 14 + 6 = 44 weeks
    TOTAL INCOME: 50 weeks less 38 weeks, = 6 weeks

    So, instead of $5200, what you get for real is $600 profit.

    Of course you are gonna use the product, so it will cost you more $60 per year.

    And now you have a $540 profit for a $1425 buy-in, so it’s about 37% ROI/year.

    About 3% / month profit (it it where a bank we could call it 3% monthly interest)

    This is my perspective. I see it as an inverse bank system. If I loan my money to Telexfree and they invest it and make more then 3% / month, we are OK.

    For example, if they build a hotel, if they buy a internet+tv+cable company and expand it selling packages, if they build a eCommerce platform that resell anything to anybody, and so on. And they where doing all that.

    It they use my money to buy a casino they will make more then 3% anyway.

    So, I understand that is looks like a weird pyramid scheme, and that promotors say all kinds of stuff to sell the opportunity that makes it looks even more like a pyramid ponzi scheme. And of course a REAL pyramid scheme is ilegal.

    I think that TelexFREE business is yet in a gray area. It’s not a traditional MLM business. It’s also not a pyramid scheme.

    Besides the $540/year, I agree that to really make money out of it you HAVE to sell the products, either direct or to resellers.

    My wife sells Mary Kay (MLM) and makes a lot more than $540 / year with less purchase of products.

    I also understand that MLM professionals don’t see is as MLM business.

    There should be a new category, a mix of bank+MLM+Stock Exchange so everybody can be happy about it. And there should be some law, rules and regulations to apply.

    But the fact is that just because it is not traditional MLM, it can’t imediately be categorized as an ilegal pyramid scheme just because it looks like it.

    If we really think out of the box a little more, we are gonna see that the bank system we use and our economy depends on it uses “ghost” money. We all know they loan money that doesn’t exists. So it also looks like a ponzi scheme. But it’s legal. Don’t ask me why. I have no idea why it’s legal to loan money that doesn’t exist.

    So, I hope that TelexFREE survives, grows and makes some adjustments if necessary, and I would love, reeeaallly love, to see SAME judiciary system going after dirty polititians and companies that don’t pay taxes like TV Globo. Froze their assets until further investigations or until they prove they didn’t accept money under the table or have their bills payed.

    I would love to see they froze ex-president Lula’s assets and his son (that was a zoo worker and now, just out of nothing, owns OI Telecom a $20 bilion company among many others)

    Would also be nice to see them froze goverment assets until they prove that they are spending MY tax money in the right way.

    I do pay 23% IVA tax on almost everything I buy, + 25% IRS + 32% Social Security + many other taxes.

    So… after this… I really don’t think TelexFREE is incorrect. Maybe there is no law yet that regulates or recognizes it. So people think it’s ilegal. Maybe the business model doesn’t fit the existing laws because the laws needs some updates.

    Brazilian law that regulates it is from 1951. There was no internet, no facebook, no google, no VoIP, etc. How could they think about regulating a business model that works and sell a global product worldwide using the internet and social media in 1951?

    They cound not.

    Thank you for reading my personal standpoint about TelexFREE.

    Anyone intereted in news about TelexFREE or wants to discuss it or make your standpoint, please add me on facebook.

    Cheers!

  8. Hello Troy! thanks for the article ! I live in Kazakhstan (USSR). in our country recently came Telehfree , people are happy to come and advise me . According to them, the company pays taxes , somewhere around $ 130 million a year ( right?) , And it’s not because pirammida there is a real communication product . I have free time and I thought zarobotka do on the Internet, what would you advise me considering my country? Advertising under your photo , is a company that you advise as legal ? Sorry for the mistakes , I’m writing through a translator Google. Thank you! ( and again, this is fiction series Borat )

  9. Does anyone know where I can get he actual report that Telexfree is under investgation here in the US. Obviously they are not legit, but I cannot find the actual report like the one they had in Brazil. I want to have this because I want to create an ad that goes out all over the internet about these clowns

    • I do not believe there is any kind of “public” investigation. You can check their state of resident to see if the AG has launched any kind of investigation.

      As for a federal level, I have not seen or heard of anything public.

      • @Brent, not invetigation in US pliz.. only Brazil where the gov’t has no proof of anything illegal.
        @troy, thanks for info. am in telefree & enjoying its benefits here in Africa.

  10. ROFLOL… Please show me where I have personally called myself an expert?

    Also, you may want to watch the video and read the full Settlement from the SEC before jumping to conclusions. :)

  11. They blocked Telexfree in Brazil after 7 months still they could NOT proof any sign of pyramid. There are 1.600.000 people angry with the prosecutor and the judge. The reason so many promoters from Brazil are angry is that they were working honestly, paying their taxes, and now their money is held by the most corrupt state in Brazil- Acre. By the way Acre in Brazil following by so many corruption has a lot of poor people, not many companies that can generate jobs so as old times people from Acre are controlled by ” corrupt…” they are afraid to go against the system and so what don’t make to the next day. The health systems is a shame, and I can tell you Telexfree was changing these peoples lives. Brazil has 26 states and there were people from all the states working for Telexfree by Brazilian law Acre would not be allowed legally to blocked a company and people from other states because this is would not be a civil matter but a federal matter, the Judge from Acre has competence to deal only with civil cases. So by the Brazilian law the Telexfree case should never to start be in Acre. In Brazil the telecommunication is very expensive, to call to USA from Brazil you will pay about $ 1.00 or more per minute, if you have Skype and the other person is on Skype that is a different scenario, but if you need to call a regular phone that’s how much you pay. Can you imagine how wonderful Telexfree products were working in Brazil? Well let’s wait to see if in the next 10 years Acre will be able to proof Telexfree is a pyramid.

    • Interesting comment… Having read through all the court documents, the prosecutor and court seems pretty clear on their facts, which is the basis on which they are claiming “pyramid”.

      And based on the fact TelexFree has lost on each appeal, it seems those facts are holding strong.

      Can you help me better understand, why you do not feel the “pyramid allegation” is clear in Brazil?

  12. Boa noite,
    Sou do Brasil, e aqui o processo contra a telex free está chegando ao final, todos os divulgadores daqui são a favor da empresa. Aconselho quem queira entrar, esperar o processo finalizar, acredito que a justiça brasileira não vá conseguir provar que é pirâmide, assim como aconteceu com a empresa Bbom, mas teve que fazer um TAC (Termo de Ajuste de Conduta), a BBOM funcionava quase no mesmo modelo da telexfree, mas o produto era um rastreador veicular, a mesma teve q mudar os eu formato para poder continuar a funcionar. Talvez o mesmo aconteça com a Telexfree.
    Geonisio Boraschi.

    • You are correct! In most cases, criticism is wrought with opinion. But when the opinion can be backed up with facts, then we create an opposite view of a debate.