Investigators looking into a Ponzi scheme run through a company called TelexFree, searched an apartment looking for evidence and boy did they find it. They took the mattress off the bed and there it was.
As it turned out TelexFree had very few customers and made most of their money from people investing in the company with lure of profits which were paid out from the money paid by the new subscribers. It’s estimated that the founders of the company scammed a total of 1.8 billion from investors. originally, the scam was set up to steal money from Brazilians but it spread all across the globe.
Meanwhile, the search of a home produced the following evidence:
20 Million in cash.
TelexFree filed for bankruptcy in 2014, its assets frozen, and its two principals were indicted on federal charges of wire fraud and conspiracy.
One of them, former chief executive James Merrill, pleaded guilty in October and awaits sentencing on February 2.
The other, Carlos Wanzeler, fled to his native Brazil where he remains, U.S. prosecutors said.
Rocha was part of a scheme to transfer millions of dollars of hidden TelexFree assets to Brazil by laundering the cash through Hong Kong, prosecutors said.
According to court documents, Rocha, acting as a courier for Wanzeler’s nephew, flew from Brazil to New York City a few days ago. Rocha then met with a cooperating witness at a restaurant in Hudson, Massachusetts, and gave him a suitcase containing $2.2million.
After the meeting, agents followed Rocha to the Westborough apartment and later arrested him.