Alessandra Marques, a Brazilian prosecutor, told Globo in an interview that she expects the Acre criminal case against TelexFree to conclude by mid-2014. The Acre Public Prosecutor's Office has already submitted over 40,000 pages of evidence in the case. Judge Thais Borges is currently reviewing these documents.

After Judge Borges completes her review, both sides will present expert testimonies. A final judgment will follow these hearings. Marques states that while multilevel marketing is not unlawful in Brazil, pyramid schemes are. She identifies TelexFree's model as a pyramid scheme.

The company's Voice over Internet Protocol (VoIP) product offered only one compensation method among several. Marques explained that TelexFree's business model relied primarily on the inflow of new participants, not on VoIP sales. Many TelexFree investors she spoke with did not purchase the VoIP service and some were unaware of its purpose.

TelexFree itself has begun anticipating the case's outcome. The company severed ties with Ympactus, the front entity used by Carlos Costa, James Merril, and Carlos Wanzeler to operate TelexFree in Brazil. Affiliates there are now reportedly being encouraged to sign up fraudulently through US banking channels, using fake identification.

The interview did not address Marques' earlier mention of a US regulatory investigation into TelexFree. News outlet iG reported that US officials neither confirmed nor denied Marques' information. Regulators commonly decline to comment on open investigations.

iG also reports that authorities in Portugal are learning about TelexFree. This follows an influx of new investor money from the country. Madeira, an autonomous region of Portugal, has an estimated 41,000 TelexFree affiliate investors. This figure represents 16% of the island's total population.

Madeira's Judicial Police have begun collecting documents related to TelexFree. An official investigation will only open once the police receive complaints from aggrieved investors. The money from Portuguese affiliates currently funds the returns for earlier TelexFree participants.