TelexFree Owners Indicted in Federal Court
7/25/2014
TelexFree co-owners Carlos N. Wanzeler and James M. Merrill, founders and owners of Marlboro, Massachusetts based TelexFree, were indicted Wednesday on charges of wire fraud and conspiracy.
Wanzeler and Merrill were charged Wednesday with a nine-count indictment in U.S. District Court in Worcester, Mass.
TelexFree, which promoted Internet phone services to its customers, was operating as a pyramid scheme according to the federal indictment.
The indictment includes eight counts of wire fraud, and seeks $140 million seized from TelexFree's account and other assets forfeited by the owners. The indictment also claims Merrill wired over $10 million in company funds to personal accounts controlled by himself and Wanzeler.
Each count carries a maximum sentence of 20 years.
Merrill is currently released on bail, however Wanzeler is at large and considered a fugitive from justice.