Brazilian Judge Borges fined TelexFree R$10,000 (about $4,200 USD) for "bad faith" after the company filed an appeal meant to delay legal action. The court also ordered TelexFree to provide affiliate account data, including twelve months of retroactive information.

TelexFree was given ten days to comply with the order. By January 14th, the company had not submitted any affiliate data to the court. TelexFree then claimed it had "no access to information about the registrations and transfers accounts of the promoters." This excuse came despite owner Carlos Costa appearing in a YouTube video days before the initial order, where he claimed to be surrounded by books containing the very data now requested.

Judge Borges rejected TelexFree's explanation. He again fined the company R$10,000, this time specifically targeting owner Carlos Wanzeler. Subsequent documents from Prosecutor's Acre (MP-AC) revealed that one of the partners, responsible for creating the telexfree.com domain, would have access to the data. The company now has five more days to provide the password for this affiliate data access, and ten days to submit other company documents.

The court likely seeks TelexFree's entire affiliate database to confirm whether the company continues to sign up Brazilian affiliates. TelexFree faces fines of R$100,000 (about $42,300 USD) for each Brazilian affiliate signed up or paid out. This potential liability explains the company's reluctance to hand over the information. The database could also aid investigations into potential money laundering between Brazil, the United States, and TelexFree's offshore bank accounts.

When Globo contacted TelexFree lawyer Roberto Duarte for comment, he stated, "the company will not discuss their position on the case. We will not talk about what happened." This silence follows a pattern of misleading statements from TelexFree management. Carlos Costa was previously caught making false claims about non-existent Ponzi insurance contracts. Just two days ago, Steve Labriola, TelexFree's International Marketing Director, instructed affiliates to "disregard" any mention of a US regulatory investigation into the company. Some TelexFree affiliates have taken Labriola's message to heart.