The Wall Street Journal reported that a federal grand jury indicted (Formally and officially accused) TelexFree LLC co-founders and owners James Merrill and Carlos Wanzeler Wednesday on fraud charges tied to allegations that their company operated a massive pyramid scheme.
The indictment expands upon the original criminal case against Messrs. Merrill and Wanzeler, who in May were each charged with one count of conspiracy to commit wire fraud in connection with the alleged pyramid scheme, which prosecutors say caused total losses of more than $1 billion, including promised returns to investors.
In addition to the conspiracy charge, the indictment adds eight counts of wire fraud stemming from transfers of about $10 million in TelexFree funds to the two men’s personal accounts.
Each count carries a maximum sentence of 20 years.
“The defendants devised, and intended to devise, a scheme to defraud, the purpose of which was to obtain money and property by means of materially false and fraudulent pretenses, promises and omissions,” reads the indictment, filed in the U.S. District Court in Worcester, Mass.
Lawyers for Messrs. Merrill and Wanzeler couldn’t immediately be reached for comment Wednesday. However, the men have maintained their innocence since the original charges were filed. And in court papers, Mr. Merrill has