A Massachusetts SEC investigation into TelexFree began in April 2013, a full nine months before International Marketing Director Steve Labriola publicly denied any such inquiry in January 2014.

This contradiction unraveled this week after a Brazilian TelexFree affiliate published details from a private conversation with company owner Carlos Wanzeler. The discussion occurred during a company event in Madrid. Wanzeler reportedly confirmed the SEC had requested documents back in April 2013, far earlier than Labriola's public denial.

Wanzeler told the affiliate that TelexFree's compensation structure was not illegal, but the extraordinary payouts worldwide triggered suspicion. He described the SEC document requests as normal procedure, nothing to worry about. The company delivered the requested materials on time, Wanzeler claimed.

Labriola, however, had explicitly told the affiliate base there was "no investigation started or presented to TelexFree in any shape or form." If the SEC made contact in April 2013, all management knew. Wanzeler certainly did.

A second document request arrived in January 2014. That demand likely prompted the subpoenas which forced TelexFree officials to appear before Massachusetts SEC officials this week. Co-owners James Merril and Carlos Wanzeler received subpoenas, according to unverified reports, along with several top affiliate-investors.

This pattern mirrors the Zeek Rewards collapse. When that company faced an SEC investigation, management minimized it as routine business. Affiliates, trusting company claims, said the investigation would actually benefit the business. Zeek later imploded.

TelexFree's silence to its affiliate base is notable. Weeks passed after the Madrid event with no official company statement about the investigation or the subpoenas. Affiliates trying to understand the truth relied on leaked conversations and blog posts from other affiliates instead of direct communication from the company.

Labriola's January statement came after the second SEC document request was already underway. This timeline suggests Labriola either remained unaware of a federal investigation into his own company, or he deliberately misled thousands of affiliates.