Brazilian regulators just filed another criminal case against TelexFree, piling fresh legal problems onto the company's already collapsing operation.
The case centers on the company's unauthorized VoIP service in Brazil. Federal prosecutors say TelexFree operated phone services without registering with Brazil's National Telecommunications Agency, or Anatel. The criminal investigation started in 2013 after Anatel inspectors found irregularities during a routine check.
Carlos Wanzeler and Carlos Costa, the company's owners, are named in the proceedings. Wanzeler is currently in Brazil after a US indictment last year charged him with fraud and conspiracy. The Federal Public Ministry formally accepted the prosecution on January 26.
Here's what TelexFree actually did: The company ran VoIP services through an app called 99Telexfree installed on computers. That part alone wouldn't require Anatel approval. But the app also connected users to landlines and cell phones—a service that absolutely requires regulatory authorization and contracts with telecom operators for interconnection. TelexFree never got those approvals.
The company also used a callback system where subscribers dialed the provider's number, entered a password and destination number, hung up, and waited for the system to call them back. That service also needed Anatel's sign-off.
When hit with the charges, TelexFree's defense was simple: blame the Americans. The company's owners claimed they weren't responsible for VoIP operations—that was TelexFree's US division running the show.
The problem? It's the same people running both. In Brazil, TelexFree operates under the name Ympactus, which court documents suggest was set up specifically to launder money between the two countries. Costa, Merrill, and Wanzeler owned Ympactus until around 2013, when Costa supposedly "sold" his stake to Merrill while keeping his Brazilian operations stake.
Blaming one company you own for the problems of another company you own is a transparent shell game. You're not shifting blame to someone else—you're shifting it to yourself.
🤖 Quick Answer
What regulatory violations did TelexFree face in Brazil regarding VoIP services?TelexFree operated unauthorized VoIP phone services in Brazil without registering with the National Telecommunications Agency (Anatel). Federal prosecutors discovered these irregularities during a routine inspection in 2013, leading to criminal charges against company owners Carlos Wanzeler and Carlos Costa.
Who are the individuals facing criminal proceedings in the TelexFree case?
Carlos Wanzeler and Carlos Costa, TelexFree's owners, are named in the Brazilian criminal prosecution. Wanzeler faces charges in both Brazil and the United States, where he was indicted for fraud and conspiracy related to the company's operations.
When did Brazilian authorities formally pursue prosecution against TelexFree?
The Federal Public Ministry formally accepted the prosecution against TelexFree on January 26. The criminal investigation originated in 2
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