Philip Reitcheck | greentrees

TelexFree Lose Appeal

Aug 12th 2013 at 12:10 PM

After nine previous appeal denials in Brazilian courts, it seems the only people who refused to believe that TelexFree is almost "done" are the remaining TelexFree affiliates in the US who are still trying to convince people to join.

Once again considering the evidence presented both by TelexFree and the Public Prosecutor’s Office of Acre, Brazil, TelexFree has lost yet another appeal in court.  This hearing was to decide once and for all whether the injunction barring TelexFree from paying its affiliates should be lifted.  The Public Prosecutor’s

Office was represented by Alvaro Pereira.  After hearing both sides of the case, a panel of judges unanimously decided to uphold the injunction against TelexFree.

Not only was the appeal denied, but the judge’s were quite blunt about what they thought of TelexFree.
Judge Samoel Evangelista noted "that the scheme has a short life and that selling VOIP is not the main activity those who join the company engage in, but rather it is the recruitment of new affiliates. The company’s entire advertising effort is designed not to promote the product but to attract new affiliates”.  Judge Valdirene Cordeiro explained his vote against the appeal, stating that "all that has been publicized in the media and presented in the (Public Prosecutor’s) file confirms the existence of a pyramid scheme."  Judge Eva Evangelista remarked "I feel a sense of compassion towards the people who sold their only home and only car on the promise of easy money (with TelexFree). This should be assessed through further civil action, with compensation paid out dependant on how much was invested."

The final step for TelexFree Lose Appeal .  Wilson Roberto Furtado, a TelexFree lawyer, stated that TelexFree will take the case to the Superior Court of Justice.  Meanwhile Horst Fuchs, another of TelexFree’s lawyers, appears to be in outright denial of the decision, as he stated "TelexFree’s new defeat was predictable since the case, from his point of view, is not being treated in accordance with the legal rules".  This appears to be a complete waste of time, as you would think that with ten (10) appeals denied, TelexFree has already served up every defense its lawyers can think of.

I feel that TelexFree resuming business operations in Brazil is now a closed book, no matter what TelexFree’s affiliates or the company officials might be telling you.  I reminds me a lot of the "denial" that was coming from the ZeekRewards affiliates when it was first "shut down".

From the remarks from Judge Evangelista it would appear that the next step will be to determine what funds can be recovered, with the goal of returning invested money to affiliates who were net losers in the scheme.  Whether or not that will involve a receivership remains to be seen.  Criminal proceedings against TelexFree, its owners and possibly its winning affiliates are also yet to be announced.

Meanwhile to all those US affiliates who are continuing to invest and sign up investors into TelexFree, be warned.  TelexFree has just lost its major investment market in Brazil and two of the owners are currently missing (believed to be in the US).  With it only being a matter of time before the permanent shutdown of TelexFree operations in Brazil, shut down in the US is coming fast.  This could be already happening, with news that Acre Public Prosecutor’s have now asked a U.S. court to prevent the recruitment of new US affiliates into TelexFree .

Just My Opinion,
Philip Reitcheck

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