James Merrill, a co-founder of the TelexFree Ponzi scheme, was scheduled for sentencing on February 2nd, facing up to ten years for wire fraud. His case, alongside that of Paul Burks, founder of the Zeek Rewards scheme, marks significant victories for federal prosecutors. Burks, after fighting charges, was found guilty by a jury last July. His sentencing was tentatively set for February 13th.

Burks's sentencing will close a criminal investigation that began in late 2011 or early 2012. The Zeek Rewards scheme defrauded investors of an estimated $850 million. Burks's legal battle culminated in a unanimous guilty verdict, signaling the end of his prolonged fight against federal charges.

Merrill's sentencing, while not ending all TelexFree litigation, represents a crucial step. His co-conspirator, Carlos Wanzeler, remains a fugitive in Brazil. Federal authorities recently seized $20 million in Wanzeler's assets in Massachusetts, funds believed to be laundered through Hong Kong. Assets gifted to Wanzeler's relatives in the U.S. are also being recovered. Cooperation with authorities is expected to lead to Wanzeler facing trial eventually, either in Brazil or the United States. The TelexFree scheme is estimated to have bilked investors out of $3 billion.

An update on February 2nd indicated Merrill's sentencing was delayed to March 2nd. On February 14th, following a lengthy hearing, Paul Burks was sentenced to fourteen years and eight months in prison. A further update on February 16th rescheduled Merrill's sentencing again, this time to March 22nd.