Federal Judge Denise Bonfim on Tuesday denied the 14th appeal seeking to overturn the Acre injunction against TelexFree. This latest attempt, filed by 52 TelexFree affiliates, follows thirteen earlier rejections of similar appeals initiated by the company itself. The June injunction prevents TelexFree from paying existing Brazilian affiliates or recruiting new ones.
The affiliates argued the shutdown violated their right to "participate in the opportunity and earn from it." They claimed the asset freeze jeopardized their investments, as contracts typically expire after twelve months. The appeal focused on both collective and individual rights being suppressed.
Judge Bonfim stated TelexFree is under investigation for operating a financial pyramid scheme. If these charges are proven, all contracts between affiliates and the company become void. Operating a crime against the economy typically invalidates such agreements.
She cited the collective interest of the public. As the TelexFree network grows, financial losses multiply across an unknown number of victims. Judicial intervention is necessary to protect the wider public from further harm.
The case remains sub judice, meaning it is still under judicial consideration. Restarting operations would compromise the ongoing investigation and trial proceedings. The affiliates failed to demonstrate a clear legal basis for their injunction, a fundamental requirement for claims of rights violations or abuse of power.
Outside Brazil, TelexFree faces other challenges. Global Payroll Gateway recently ceased acting as the company's payment processor. TelexFree now attempts to channel affiliate payouts through International Payout Systems Inc.
In Brazil, the outlook for the company remains bleak. Money laundering and embezzlement charges are pending against TelexFree's owners and top affiliates. The Acre injunction continues to stand after fourteen failed attempts to overturn it.