Following a ruling late last year
certifying TelexFree a Ponzi scheme in Brazil
, things have been pretty quiet down there.

From filings in the US cases, we know that Brazilian and US authorities are cooperating behind the scenes with their various investigations.

One of the Brazilian agencies investigating TelexFree is the IRS, who claim TelexFree’s owners owe them at least $130 million.

If you’re wondering how a Ponzi scheme racks up such a large tax bill, the $130 million figure was arrived at upon consideration of interest and criminal penalties.

The IRS investigation was conducted as part of
Operation Orion
, launched just under two years ago. In addition to the IRS’ $130 million claim, there are purportedly another four tax-related matters pending in court.

Seeking to recover the funds, the IRS took the matter to court and won a judgement back in February. It appears however that the case was only unsealed last week.

According to Gazeta Online,

Carlos Costa, Carlos Wanzeler and James Merrill have 30 days to pay off the debt through cash deposit, bank guarantee, submitting assets for seizure or surrendering third-party assets.

I believe the 30 day deadline kicks in from the date the case was unsealed by the court last week, which would be early May.

If Costa, Wanzeler and Merrill don’t pay up (and let’s be realistic, they probably wont), the IRS will recoup the penalties from funds seized via
an injunction
granted in the Brazilian state of Acre.

Personally I think those funds should be reserved for paying out victims of the scheme, with payment of the tax bill required by Costa, Wanzeler and Merril alone. This is their mess, so why should victims foot the bill?

Obviously there’s a question of whether the trio can pay – but if they can’t, start seizing assets. And if that doesn’t satisfy $130 million, start making arrests.

According to the lawyer Horst Vilmar Fuchs, the company will appeal the decision.

What with TelexFree pretty much losing every appeal they’ve filed in Brazil, good luck with that.

🤖 Quick Answer

What was the total tax penalty imposed on TelexFree by the IRS?
The IRS claimed that TelexFree's owners owed at least $130 million in taxes. This figure was calculated by considering both interest accrued and criminal penalties imposed following the agency's investigation into the company's fraudulent operations as part of Operation Orion.

How did Brazilian and US authorities coordinate their investigations into TelexFree?
Brazilian and US authorities cooperated behind the scenes conducting various investigations into TelexFree. The IRS, operating as one of the investigating Brazilian agencies, worked alongside other entities to uncover the scheme's financial crimes and pursue recovery efforts through multiple pending tax-related court matters.

What was Operation Orion's role in the TelexFree investigation?
Operation Orion was launched approximately two years before the $130 million penalty claim and served as the framework for

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