TelexFree submitted a new proposal to Acre's Public Prosecutors on January 8th. The company offered to refund affiliate investors, provided it could restart its Ponzi scheme in Brazil. This move follows multiple dismissed and denied motions from TelexFree in the Acre court, where Judge Thais Khalil now reviews thousands of pages of evidence.
Acre's Public Prosecutors previously proposed a full refund to affiliate investors and a permanent shutdown of the scheme during mediation. TelexFree rejected that offer. The company's new proposal matches the refund portion of the prosecutors' earlier suggestion. However, it diverges significantly by seeking to resume operations.
This latest attempt mirrors past failed strategies. Carlos Costa, a key figure in TelexFree, presented an identical proposal in November. Judge Khalil rejected it then. Costa's prior proposals also included allowing the company to continue its Ponzi scheme as if no authorities had intervened, or permitting payouts to existing investors who would then re-register in the U.S. to continue investing. Both were dismissed.
TelexFree was recently fined for wasting court time. The pattern of submitting repeatedly rejected proposals raises questions about the company's legal approach. Judge Khalil continues her review of the evidence, and a final decision is expected.
Separately, Carlos Costa has been observed spreading false information in his YouTube videos.