TelexFree hastily introduced a new compensation plan following a Massachusetts Securities Division investigation into its operations. The company offered no official documentation for the plan, leaving affiliates with many unanswered questions about its structure and implementation.
TelexFree later announced "corporate training" events to explain the new plan. Affiliates had to pay $169 each to attend these sessions. Those who did not pay remained without official guidance on the restructured compensation.
Ponzi schemes often attempt to re-invent themselves once US regulators begin an investigation. Zeek Rewards provides a recent, infamous example. In the months before Zeek Rewards' shutdown, management promoted a merchant shopping network. This network supposedly boosted retail activity, which was then non-existent within the opportunity.
TelexFree similarly promises to launch a "TelexApp" mobile application. The app's function and how it integrates with affiliate VOIP investment positions remains unclear. This initiative appears to shift attention from the $20 weekly returns paid on each AdCentral investment position.
Any changes made to a Ponzi scheme after an investigation begins typically hold little weight with regulators. Court documents from the Zeek Rewards case, for example, show no mention of their touted merchant shopping network. Regulators considered anything promised or planned after the original launch of the scheme irrelevant.
TelexFree's new compensation plan and app will likely not be the focus of the SEC's investigation. Instead, scrutiny will fall on the company's business model over the past two years.
TelexFree accepted $299 deposits from affiliates. It guaranteed them a $20 weekly return for 52 weeks, under the pretense of having them advertise the business. Online searches reveal extensive promotion of this model. A Google search for "get paid to post ads telexfree" returns 92,400 results. A simpler search for "post ads telexfree" yields 707,000 results.
TelexFree's own website, until recently, stated: "The promoter will receive US$20 each week that makes 7 different announcements in websites of free."