The Specialized Anti Money Laundering Prosecution Service, headed up by Judge German Miranda Villalona, and the National District Prosecution office are now investigating TelexFree Dominicana for money laundering, fraud and violating monetary and finance laws following a complaint by the Superintendence of Dominican Stocks and Shares made on 3 March.
Wendy Lora, director of the Department of Organized Crime, is carrying out the investigation into the practices of representatives of TelexFree and their shareholders that may be in violation of Dominican monetary and finance laws.
TelexFree alleged scam has ensnared more than 150,000 people in the Dominican Republic, as reported by various media outlets. Economic analyst, Alejandro Fernandez, estimates that the amount of money tied to the alleged scam could reach US$100 million.
Most of the targets for the alleged scam were working and living in the east of the country. In the San Pedro de Macoris and La Romana, areas certain church leaders had promoted the deal to their followers as having the blessing of God.
However, economic analyst Alejandro Fernandez and TV commentator Roberto Cavada had alerted the public to the ponzi scheme as far back as September 2013. After that alert, the company in question set up a legal branch in the Dominican Republic called TelexFree Dominicana and continued its operations.
In September 2013, Alejandro Fernandez had reported that the business had previously operated in Brazil before it was shut down by Brazilian judicial authorities who considered the operation a ponzi scheme. In the case of Brazil, officials estimated that more than half a million people were affected. Having ceased operations in Brazil, the company then moved its operations to the Dominican Republic in 2012.
Fernandez reported that the Dominican authorities at the time said they could not act because no one had sued.
Subsequently, investigative reporter, Nuria Piera alerted the public about the alleged scam that promised to ‘investors’ 400% on their investment in only 4 months.
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