A recent judicial review affirmed the "conclusive" nature of the Ernst & Young (E&Y) report on TelexFree, a February 2015 document that identified characteristics of a financial pyramid within the company's operations. Judge Thais Borges issued the ruling, dismissing TelexFree's long-standing claims that the audit was inconclusive.

The E&Y report, compiled using information provided directly by TelexFree, detailed the structural elements suggesting a pyramid scheme. Despite the firm's comprehensive analysis, TelexFree's legal team quickly denounced the findings. They argued the report lacked definitive conclusions.

TelexFree also sought to block public access to the E&Y audit. The company contended that tax-secrecy laws protected the report's contents from disclosure. This argument was rejected by the court. While the full E&Y audit report remains largely out of public view, Judge Borges's recent decision brings greater clarity to its official standing.

Judge Borges stated that the report is indeed conclusive, aligning with the common understanding of its findings. This ruling sets a 15-day period for both TelexFree and the Acre Public Prosecutors Office to file any additional correspondence related to the case. This window could include a final appeal from TelexFree.

Challenging the report's underlying data appears to be the primary remaining avenue for TelexFree. However, the report's conclusions stem from internal information TelexFree itself supplied to Ernst & Young. This makes a successful challenge difficult.

TelexFree co-founder Carlos Costa had repeatedly promoted the idea of a third-party audit. He argued such a review would definitively clear the company of Ponzi scheme allegations. The E&Y audit was commissioned after months of these public statements from Costa.

The 15-day response deadline falls on Monday, April 20th. If neither party submits further filings, Judge Borges will then issue a final decision on the case.