Carlos Wanzeler, co-owner of the alleged $1 billion TelexFree Ponzi scheme, fled the United States the night before federal agents raided his home. He took his daughter across the Canadian border, then flew to Brazil, carrying enough investor cash to retain prominent lawyer Antonio Carlos de Almeida Castro.

His business partner, James Merrill, stayed behind. Merrill now sits in a jail cell, and his legal team points to Wanzeler's escape as a key part of Merrill's defense. Both men face wire fraud charges related to the TelexFree operation.

Merrill's court filings show clear resentment. His lawyers argue he deserves bail because "unlike his co-defendant in this case (Carlos Wanzeler), Mr. Merrill did not attempt to flee or avoid this prosecution, despite clear notice and knowledge of the government's ongoing criminal investigation."

Wanzeler landed in Brazil and immediately hired Castro to build a legal defense. The attorney crafted a story claiming Wanzeler merely returned to his birth country, a natural decision. Castro further argued no arrest warrant existed at the time of Wanzeler's departure, so he could not be considered a fugitive.

Authorities did not accept this argument. Castro then shifted tactics, suggesting Brazil should protect Wanzeler because the United States disrespects individual rights. He cited the arrest of Wanzeler's wife, Katia, who was detained attempting to follow her husband south. She has since been released and remains in the US.

Merrill was arrested last month, denied bail, and held for three weeks. His legal team now challenges the government's entire case. They dispute the classification of TelexFree as a pyramid scheme. Lawyers claim the government's assertion that product sales made up only 1% of total revenue is "unsustainable" and "unsupported by evidence."

This argument regarding product sales may not hold up in court. The contrasting fact of Wanzeler's flight, however, remains central to Merrill's current legal fight.