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Telexfree pyramid scam defrauded US$1.6 billion

A bankruptcy court in the United States calculates the fraud perpetrated by a company known as Telexfree at US$1.6 billion, obtained through 831,000 accounts held by hundreds of thousands of people recruited by the pyramid selling scheme, including many in the Dominican Republic.

The evidence includes cash confiscations, a check for US$10 million in the name of Telexfree Dominicana, a Ferrari, luxury SUVs and boats. The accused include a Dominican national, Santiago de la Rosa, as well as United States nationals James M. Merrill, Carlos N. Wanzeler, Steven M. Labriola, Joseph H. Kraft, Sanderley Rodriguez, Randy Crosby and Faith R. Sloan.

The court appointed Stephen Darr as the executor for the return of the assets to the victims of the multi-million dollar fraud.

The decision was made by judge Melvin S. Hoffman after the presentation of evidence obtained during almost a year of undercover investigations by the FBI and other bodies, which led to the accusations of electronic and financial fraud through the Telefree.com website.

The investigation found that over a period of 18 months 902,000 unique e-mail accounts were affiliated to the scheme, of which only 68,000 actually benefited. 831,000 of the registered account holders lost their money, for a total of around US$1.6 billion from victims worldwide.

The court in Massachusetts has started the legal process of validating the victims from all over the world, as well as the sums they are claiming in order to work out how the assets confiscated from the company will be divided and shared out equitably.

Source: Dt

August 26, 2015

Category: DR News |

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Last updated December 2, 2016 at 1:59 PM
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