It includes a Brazilian company named "Ympactus Comercial Ltda", which was suspended in that country on June 13, 2013, by order of the court of Acre State.

Telexfree Brazil (Ympactus Comercial Ltda) denies the accusations, saying that it operates under the multi-level marketing structure, commercializing VoIP services.

[42] Telexfree and BBOM, both companies suspected of operating Ponzi schemes and suspended by the Brazilian government, were featured among the top 10 most searched terms on Google during the year of 2013 in Brazil.

[55][56] Nehra is a lawyer who is known in the U.S. for defending closed down Ponzi and pyramid schemes, such as Zeek Rewards,[57] Ad Surf Daily,[55][58] Universo Foneclub[55] and others.

The note says as follows (translated from the original Portuguese): By judicial decision issued on June 13th, 2013, Judge Thais Queiroz B. de Oliveira Abou Khalil, in the records of the Preparatory Action No.

Marcus França, one of Telexfree's top promoters, stated, "we won't go back to the hoe, like the system wants us to", referring to the labor of weeding grass commonly performed by lower class Brazilian countrymen.

The appeal was rejected by the judges of Tribunal de Justiça of Acre[68][69] citing lack of payment and causing severe damage to the image of company lawyers before its promoters.

[74][75][76][77][78] In August 2013, Telexfree was fined by ANATEL, the Brazilian telecommunications regulatory agency, for lacking a license to provide VoIP services in the country.

[79][80] After 13 attempts to overturn the injunction that shut down its operations in Brazil, Ympactus Comercial Ltda declared bankruptcy on September 20, 2013, when judicial recovery was requested in the court Vara de Recuperação Empresarial e Falência of Vitória.

[84][85] The court immediately blocked this maneuver to protect company assets and guarantee the maximum "pro-rata" amount would be returned to its investors when the time came.

[86][87] In November 2013, as a last attempt to avoid auditing in its operations, Telexfree in Brazil tried to arrange a mediation with Brazilian legal authorities and return to business.

[90] After the mediation meeting ended, the Telexfree promoter Flávio Arraz was arrested, being accused of insulting the public prosecutor of the case, Alessandra Marques, calling her "Blond Devil".

GAECO (Special Action Group to Combat Organized Crime) and the police started to investigate the threats and some suspects have been identified.

[108] In December 2013, the Public Ministry issued an official statement denying the false information that Alessandra Marques, Telexfree case prosecutor, had been supposedly killed and that her body had been found by the police.

[118] According with news by Peruvian Press in December 2013, World Capital Market 777 (WCM777), a recently shut-down Ponzi scheme based in Hong Kong, [119][120][121] and Telexfree LLC, had their operations prohibited by Superintendencia de Banca, Seguros y AFP (SBS) in Peru.

[122][123][124][125] Peruvian authorities asked the population to report any local operations from both companies to the National Police and the Public Ministry in order to close the schemes.

[128][129] In November 2013, Telexfree, which started its operations in 2011, was accused of having plagiarized its brand identity from 2010 BWF World Championships because of the striking resemblance between the logos.

[74][75][76][78] After this episode, Telexfree and the logo's designer Vixmais Soluções (a company that belongs to one of Telexfree promoters Dilhermano Gonçalves) announced its re-branding without any official explanations about the case or any legal action brought by the logo owner Badminton World Federation or the marketing agency responsible for the creation (Taïo Design Consulting).

[77][130] MDL 2566 In re TelexFree Securities Litigation consolidated all civil claims by the victims of this Pyramid scheme into one Federal court docket.