Roberto Barros, President of Acre Court, announced today that TelexFree's appeal will be heard next Monday, July 8th. The decision, initially expected earlier this week, faced delays. Lawyers filed the appeal on Friday, leaving insufficient time to schedule a Monday trial.
Barros rejected accusations about judicial delays, dismissing claims made by some protesters. He stated that demonstrations would not influence court decisions. Arguments belong in legal briefs, not on poster board. "The arguments made by protesters through posters and reports should be made through the proper channels, not through demonstrations," Barros said.
He also addressed reports that a TelexFree affiliate promised to donate a car to charity in Acre if the injunction was overturned. Barros called this an attempt to bribe the judiciary. TelexFree affiliates have sent death threats to the judge who granted the injunction and blockaded public roads and bridges.
Meanwhile, the Attorney General's Office in Rio Grande do Norte announced a new civil investigation into TelexFree. This makes it the seventh Brazilian state to probe the company. The investigation launches Thursday, July 4th, based on suspicions TelexFree operates as a pyramid scheme.
Several other companies face scrutiny, with BBOM among them. The Rio Grande do Norte AG's Office appears to have reached similar conclusions concerning BBOM's structure. BBOM's Director, Ednaldo Bishop, responded to these inquiries. "We are aware of these suspicions yes, but above all, we have not been notified by any prosecutor," Bishop stated.
BBOM collects between $300 and $1500 from affiliates. It then pays back $80 to $400 monthly, an amount dependent on the initial investment. The company claims revenue comes from customers using GPS trackers, which affiliates supposedly pay for. But BBOM pays out instantly, raising questions about business legitimacy. Affiliates do not actually sell the trackers; BBOM handles those transactions while affiliates send money.
Bishop maintains that revenue comes "mainly from the BBOM tracking services and the sale of equipment monitoring." He added that this revenue is shared with the network. "If people today stopped entering the system, BBOM would still be operational." While it might survive short-term, the weekly returns would likely dry up fast without fresh investment from new affiliates, who number around 300,000.
TelexFree affiliates and observers now await next Monday's decision on whether the Acre injunction holds.