TelexFree owners: Investors were “assholes”, “dumb people”
In order for owners and early investors of Ponzi schemes to withdraw money, they have to convince those below them to reinvest.
Also referred to as “compounding” or “building”, in a nutshell non-existent money is recycled into more non-existent money, all the while real money is being pulled out by admins and early investors.
Everybody winks and thinks they’re getting rich because balances in their backoffices continue to grow. When the time comes to withdraw though, it all falls apart.
In TelexFree, currently the largest MLM Ponzi scheme of all time, things were no different.
While BehindMLM and the few publications following the scam continued to call them out on Ponzi fraud, TelexFree had a loyal affiliate-base who believed anything its owners told them.
Private conversation between owners Carlos Wanzeler (right) and Carlos Costa however, reveal TelexFree affiliates were played for fools.
In mid 2014 Brazilian authorities launched Operation Orion, a criminal investigation into Ympactus, the Brazilian arm of TelexFree.
Following a recent court decision, evidence collected as part of Operation Orion has now been made public.
Before the SEC shutdown TelexFree in 2014, Ympactus in Brazil had already run out of money to pay local investors with.
In an April, 2014 conversation between Wanzeler and Costa, Wanzeler lamented the shortcomings of Ponzi math.
More than 70% reinvested the winnings. You can trust me in that number.
They always do this and you (sic) know this … if not more. Lol Asshole people. Kkkkkk.
In another conversation, Wanzeler allegedly referred to TelexFree affiliates as “dumb people”.
Evidence collected during Operation Orion also demonstrates Wanzeler and Costa appearing to knowingly circumvent a Brazilian court order.
A court in Acre suspended Ympactus’ Brazilian operations by way of injunction in June, 2013. Wanzeler and Costa ignored the injunction and had Brazilian affiliates sign up via the US.
When Brazilian media reported on their efforts, they weren’t too happy about it but continued to violate the injunction anyway.
It seems that it came out in the gazette (sic) yes that leaders would be making network abroad … so be very careful.
Rafael Lima, a criminal defense attorney representing Carlos Wanzeler, stated he would not comment on the specifics of Wanzeler and Costa’s conversations.
Lima stated the conversations have been taken out of context and that the evidence should have remained sealed.
Wanzeler, Costa and a slew of TelexFree insiders were indicted by Brazilian authorities last month. The case is currently playing out in court.
While the intellectual ability of the victims Wanzeler and Costa scammed certainly doesn’t justify their actions, I sort of get where they’re coming from.
Three years later, we’ve now pretty much got the same thing going on with OneCoin. It’s the same type of people falling for the same Ponzi scam, albeit with a different coat of paint.
Are these people all stupid and/or assholes?
While the merits of such a discussion might be debatable, what we know for sure is the vast majority of them wind up losing money.
Behind every BusinessForHome Ponzi success story relentlessly splashed about on social media, there are ultimately thousands of victims paying for it.