Organizing a Ponzi in the USA is a bad idea, Zeek Rewards CEO Paul Burks got 14 years, COO Dawn Wright Olivares 7.5 years and 2 years for CTO Daniel Olivares.
Federal prosecutors are recommending 10 years of prison time for James Merrill, the former Chief Executive of TelexFree Inc., for his role in one of the largest pyramid schemes of all time.
Merrill, of Ashland, pleaded guilty in October to multiple fraud counts for his role in the global scheme, in which nearly 1.9 million people from more than 100 countries lost $3.5 billion.
He will be sentenced in federal court in Worcester next week, while his business partner, Carlos Wanzeler, remains a fugitive in his native Brazil.
In sentencing memorandums filed Thursday, prosecutors alleged that from February 2012 to April 2014, Merrill ran
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TelexFree Co-Owner Pleads Not Guilty In Alleged Fraud
by Tina Williams • • 0 Comments
James Merrill entered a not-guilty plea for the TelexFree Inc. co-owner Wednesday in federal court in Worcester, his lawyer said.
Merrill, of Ashland, was president of the Marlborough-based phone service company, which is accused of running a $1 billion global pyramid scheme. His business partner, Carlos Wanzeler, remains a fugitive in Brazil and did not appear in court to face the charges.
Both men have been charged with nine counts of wire fraud and conspiracy. Each charge carries a possible maximum sentence of 20 years, but actual sentences are generally less than the maximums, according to the US Attorney’s office.
TelexFree sought federal bankruptcy protection in April, just as state and US securities regulators were days from filing civil fraud charges against the principals. Wanzeler fled the country that month to his native Vitoria, Brazil, while Merrill was arrested and held in jail for several weeks.
Merrill will remain home, wearing a GPS tracking bracelet and on $900,000 bail, officials said.