Tax authorities in Brazil aren’t done investigating TelexFree, with the latest seeing Carlos Costa sued for $1.3 million dollars in tax fraud.

As per a lawsuit filed by the Federal Public Ministry of Espirito Santo (MPF), in 2012 Costa failed to declare earnings R$4.4 million ($1.3 million USD).

The earnings were related to TelexFree, with MPF alleging Costa (right) failed to report the income to reduce his income tax.

MPF have
officially charged
Costa with providing false statements to Brazil’s IRS.

If convicted, Costa is up for a fine and two to five years in prison. This may be increased if MPF are able to prove the income was obtained illegally and ‘
caused serious damage to the community
‘.

Sounds like a slam dunk case to me.

Horst Fuchs, TelexFree’s lawyer in Brazil, said Costa had yet to be summoned and so would not present himself. Costa himself was unavailable for comment.

In addition to
scamming thousands of people out of billions of dollars
, whether Costa will claim
god also advised him
 commit tax fraud remains to be seen.

Earlier this year the Brazilian IRS 
slapped TelexFree
with a $130 million dollar tax penalty. As I understand it the case is ongoing..

🤖 Quick Answer

Who is Carlos Costa and what are the charges against him?
Carlos Costa is a TelexFree associate facing charges by Brazil's Federal Public Ministry for failing to declare R$4.4 million (approximately $1.3 million USD) in earnings in 2012. He has been officially charged with providing false statements to Brazil's tax authorities and tax fraud related to his involvement with TelexFree.

What are the potential consequences if Carlos Costa is convicted?
If convicted, Costa faces a fine and imprisonment ranging from two to five years. The sentence may be increased if authorities prove the undeclared income was obtained illegally and caused serious damage to the community.

What is the status of the investigation into TelexFree in Brazil?
Brazilian tax authorities continue investigating TelexFree and related parties. The latest development involves the Federal Public Ministry of Espirito Santo's lawsuit against Costa, representing ongoing

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