On December 30th the TelexFree class-action plaintiffs filed their fifth amended complaint.

I didn’t cover it because the only change was a bunch of defendants were added – most of which are banks and payment processors. The complaint itself has blown out to two hundred and eighty-four pages.

As a result of this the TelexFree class-action docket has become quite busy. In order to keep track of developments I thought we’d revisit the class-action and see where it’s at.

For reference, this is the current list of defendants as per the fifth amended complaint:

TelexFree Staff

James Merrill (co-founder, TelexFree)

Carlos Wanzeler (co-founder, TelexFree)

Katia Wanzeler (wife of Carlos Wanzeler)

Carlos Costa (co-founder, TelexFree Brazil (Ympactus))

Steven Labriola (International Marketing Director, TelexFree)

Andreia Moreira (marketing management, sales and finance, TelexFree)

Ana Paula Oliveira (marketing management, sales and finance, TelexFree)

TelexFree Legal

Gerald Nehra (TelexFree attorney)

Gerald P. Nehra, Attorney at Law PLLC (Nehra’s law firm)

Law Offices of Nehra and Waak (second Nehra law firm)

the Estate of Jeffrey A. Babener (TelexFree attorney)

Garvey Schubert Barer P.C. (defunct professional corporation)

Robert Weaver (TelexFree attorney)

Samuel C. Kauffman (TelexFree attorney)

Gary P. Tober (TelexFree attorney)

Sarah P. Sandford (TelexFree attorney)

The Sheffield Group (MLM specialist firm)

PricewaterhouseCoopers LLP (assisted TelexFree financial executive Joseph Craft)

TelexFree Financial

TD Bank N.A (TelexFree bank)

Kevin Staten
(Bank of America Senior Vice President, actively involved with opening TelexFree accounts)

Wells Fargo Bank N.A. (TelexFree bank)

Wells Fargo Advisors LLC (associated Wells Fargo financial company)

Mauricio Cardenas (Wells Fargo Advisors Financial Advisor, close friend of Carlos Wanzeler)

PNC Bank N.A. (TelexFree bank)

TelexFree Payment Processors

International Payout Systems

Edwin Gonzales
(President, International Payout Systems)

Natalia Yenatska
(Chief Financial Officer, International Payout Systems)

ProPay Inc.

Vantage Payments LLC

Dustin Sparman (Managing Partners, Vantage Paymments)

AlliedWallet

Ahmad Khawaja (founder & CEO, AlliedWallet)

Mohammad Diab (COO, AlliedWallet)

Amy Rountree (VP of Operations, AlliedWallet)

Bank Card Consultants Inc.

John Yurick owner, Bank Card Consultants)

Priority Payouts Corp.

Thomas A. Wells
(CEO, Priority Payouts)

Other TelexFree Defendants

Telecom Logic LLC (“provided TelexFree with ever

increasingly deceptive, slick and difficult to trace services it needed to collect victim funds long after it confronted TelexFree’s founders and bluntly told them they were running a scam”)

Ryan James Mitchell (owner, Telecome Logic LLC)

TelexElectric LLLP (receive $2 million from TelexFree)

Telex Mobile Holdings Inc. (received $500,870 from TelexFree)

The fifth amended complaint also provides a list of settled de

🤖 Quick Answer

What is the TelexFree class-action fifth amended complaint about?
Filed on December 30th, the fifth amended complaint expands the lawsuit to 284 pages, primarily adding banking institutions and payment processors as defendants. The document maintains focus on alleged misconduct by TelexFree co-founders and associated individuals in a multi-level marketing scheme.

Who are the primary defendants named in the complaint?
Key defendants include TelexFree co-founders James Merrill and Carlos Wanzeler, along with Katia Wanzeler, Carlos Costa from TelexFree Brazil, and Steven Labriola. The complaint additionally names multiple financial institutions and payment processors accused of facilitating fraudulent transactions.

How has the litigation evolved through amendments?
The TelexFree class-action has progressed through five amended complaints, each expanding scope and defendant listings. The expansion reflects ongoing discovery

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