Katia Wanzeler, wife of alleged TelexFree Ponzi scheme operator Carlos Wanzeler, was arrested today at John F. Kennedy International Airport while attempting to fly to Brazil. She is considered a material witness in the $1 billion fraud case against her husband, who remains a fugitive from US federal authorities.

Federal agents took Wanzeler into custody as she prepared to board a one-way flight to Rio de Janeiro. She appeared before U.S. Magistrate Joan Azrack in Brooklyn federal court.

Wanzeler's lawyer argued she had no reason to flee. He stated his client was merely a witness in the case and planned to return to the US by the end of the month.

But federal agents found Wanzeler with $3,000 in cash and four suitcases, each weighing 70 pounds. "Seventy pounds of luggage? Four suitcases? ... There is no way I'm releasing her," Azrack said from the bench.

Wanzeler's lawyer claimed the luggage contained clothes she had bought for relatives. Magistrate Azrack rejected this explanation. The court denied bail for 49-year-old Katia Wanzeler.

She wiped away tears with her sleeves as she was led out of court, dressed in blue jeans and a hoodie. Wanzeler will be transferred to Massachusetts, where a grand jury in Worcester has subpoenaed her.

The plane ticket was paid for in cash by someone in Brazil. Her husband Carlos Wanzeler is currently hiding in Brazil.

This was not the first time Katia Wanzeler provided misleading information to authorities. According to an affidavit filed by US regulators, agents raided the Wanzeler home on April 17. Katia Wanzeler then "informed agents that her husband had been staying in a hotel 'on the advice of counsel.'"

Carlos Wanzeler had already fled the country. He drove into Canada before flying to Brazil.

Late on April 15, the same day federal agents raided TelexFree headquarters in Marlborough, Massachusetts, Carlos Wanzeler and his daughter Lyvia drove a BMW to the US-Canada border crossing at Lacolle, Quebec. The vehicle bore Massachusetts plates registered to Acceris Realty Estate LLC. Katia Wanzeler is the registered agent for that company.

Two days later, on April 17, Carlos Wanzeler and his daughter boarded Air Canada flight 90 from Toronto to Sao Paulo, Brazil. Carlos Wanzeler entered Brazil using his Brazilian passport. Lyvia Wanzeler returned to the US for a week before departing for Italy on May 1.

The United States has formally requested Carlos Wanzeler's extradition from Brazil. Assistant Brooklyn U.S. Attorney Jonathan Lax confirmed these requests have so far been unsuccessful.