According to the lawsuit, which consolidated civil claims of at least 780,000 alleged victims Bank of America and PricewaterhouseCoopers did business with Telexfree even after knowing that the company was closed in Brazil on charges of fraudulent operation
The company MLM intended as a seller of cheap phone service long distance, an office in Marlborough. But prosecutors argue that, in fact, the company raised more than $ 1 billion over a period of 18 months from the investments of its partners, with the promise of returns for the quick return of investment promotion company.
Two US company directors face criminal charges and accusations by securities regulators who defrauded up to one million people worldwide. Believed to be the biggest fraud in history in terms of the number of victims.
Robert Bonsignore, who is the lead attorney in the civil case, alleged that Telexfree, directors and principal promoters "knowingly, maliciously and willfully conspired to commit, the Ponzi scheme Telexfree fully aware of the illegal nature deceptive and unfair".
In addition, the complaint alleges that 200 pages a number of service providers, including banks and accountants, "were negligent or reckless in counseling, participating directly in" providing, primary care "for Telexfree, despite knowing that it was a scheme illegal pyramid.
A spokesman for PricewaterhouseCoopers, based in New York, declined to comment, as did a spokesman for Bank of America, based in Charlotte, NC, who also refused.
Telexfree lawyers and managers of Massachusetts, James Merrill of Ashland and Carlos Wanzeler before Northborough, have denied wrongdoing. The two men face up to 20 years in prison if convicted.
Merrill is at home awaiting trial. Wanzeler fled to his native Brazil last April after pleading Telexfree bankrupt and be revised his office by agents of Homeland Security Investigations and the FBI.
Among the many service companies named in the complaint, Bank of America and PricewaterhouseCoopers are the largest and most prestigious. According to the complaint, the Telexfree members urged members to make deposits without an appointment at a branch of Bank of America in Shrewsbury in early 2013.
In the spring of that year, the Bank of America questioned Telexfree business, according to the complaint. Also "had exchanges with the company on the termination of their business relationship and the outage of its accounts, but never took place," the complaint said.
The lawsuit, filed in federal court in Worcester, says PricewaterhouseCoopers "presto about accounting and consulting negligently" to Telexfree during operation. Claims that Telexfree hired PricewaterhouseCoopers in January 2014, several months after the company had been locked in Brazil.
The lawsuit also alleges that PricewaterhouseCoopers "negligently advised" to Telexfree to prepare tax forms 1099 inaccurately dealers, which had suffered losses to the company.
The Secretary of State William F. Galvin in Massachusetts last year won a $ 3.5 million settlement with the bank's subsidiary Fitchburg, allegedly for allowing Telexfree open accounts without a control of your business ..
Fidelity Bank, which is run by the brother of Merrill, John Merrill, neither admitted nor denied the allegations.
You can follow the whole case from HERE
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