Fabio Wanzeler’s request that he not be recognized as a TelexFree net-winner, i.e. someone who scammed TelexFree victims out of money, has come to an end.

On December 21st the US Bankruptcy Court in Massachusetts denied Wanzeler’s motion.

To add context, Fabio Wanzeler is the brother of TelexFree co-owner Carlos Wanzeler.

TelexFree was a
$3 billion+ Ponzi scheme
launched in 2012. It was
shut down by the SEC
in 2014.

BehindMLM covered Fabio Wanzeler’s settlement with the TelexFree Trustee in late 2018. The settlement revealed Wanzeler, a TelexFree net-winner, received $633,578.

The settlement was part of clawback litigation aimed at recovering funds stolen from TelexFree victims by net-winners.

Wanzeler’s settlement saw him give up a property purchased with stolen TelexFree investor funds, and take out a $250,000 mortgage on another property, which would then be transferred to the Trustee.

Within hours of article going live, Wanzeler
threatened BehindMLM with defamation
.

Despite the settlement document Wanzeler signed being publicly available, Wanzeler asserted it wasn’t the full settlement.

Of course when prompted, Wanzeler wasn’t able to provide an alternative “full” settlement agreement.

If you read through he comments of our coverage you can see the back and forth between myself and Wanzeler.

What it boils down to is Wanzeler objecting to being labelled a net-winner who stole $633,578 from TelexFree victims, and then used that money to purchase properties.

Wanzeler’s requests that we remove coverage of the settlement because we didn’t seek his consent were denied.

I pointed out that’s what was in the settlement he signed, and that if he had an issue with the settlement he should take it up with the Trustee.

This prompted Wanzeler to file a motion with the court, claiming the Trustee
secretly added an addendum
to the filed settlement agreement.

The Trustee denied the accusation and the motion doesn’t appear to have gone anywhere.

Wanzeler’s next attempt to clear his name was a waffle read of a motion filed in July 2020.

In
the motion
Wanzeler pulls out the “I knew nothing!” defense, arguing that he didn’t personally recruit “many people” and that somehow made any difference.

The motion was
dismissed by the court
two days after it was filed.

Wanzeler’s third motion
was more of the same, arguing that him being labelled a net-winner was “false”.

The Trustee and his legal team should re-evaluate the terms of the settlements and how they are being applied to TelexFree cases because such settlements are adversely affecting many people who, if precedent is followed fairly, should not be being adversely affected.

In
denying Wanzeler’s motion
, the court wrote

Mr. Wanzeler indicates that he is seeking only to strike statements about him from the fee applications filed by the trustee and the trustee’s professionals.

Having reviewed those fee applications, the Court finds that the statements therein about Mr. Wanzeler

🤖 Quick Answer

Who is Fabio Wanzeler and what is his connection to TelexFree?
Fabio Wanzeler is the brother of TelexFree co-owner Carlos Wanzeler. He was identified as a net-winner in the $3 billion Ponzi scheme, meaning he profited from defrauding victims. In 2018, he settled with the TelexFree Trustee, receiving $633,578 and surrendering assets purchased with stolen funds.

What did the US Bankruptcy Court decide regarding Fabio Wanzeler on December 21st?
The US Bankruptcy Court in Massachusetts denied Wanzeler's motion requesting he not be recognized as a TelexFree net-winner. This decision confirmed his status as someone who scammed TelexFree victims and upheld the clawback litigation against him.

**What was T

🔗 Related Articles

- Massachusetts charge TelexFree as “billion dollar Ponzi”
- TelexFree delay preliminary injunction hearing
- TelexFree insiders try to cut prelim injunction deals
- SEC granted TRO against TelexFree, hearing set
- SEC: Merrill’s guilty plea “not accepted” by court (TelexFree)