Federal prosecutors in Boston charged Cleber Rene Rizerio Rocha, 28, with conspiring to commit money laundering in a case connected to the investigation of TelexFree Inc, which promoted itself as an internet telecom company but prosecutors say was actually a pyramid scheme. His lawyer did not immediately respond to a request for comment. The arrest stemmed from an investigation into TelexFree, a Marlborough, Massachusetts-based company that sold voice-over-internet telephone service and was founded by James Merrill, a U.S. citizen, and Carlos Wanzeler, a Brazilian. Prosecutors said TelexFree was a massive pyramid scheme, making little to no money selling its service while taking in millions of dollars from thousands of people who paid to sign up to be “promoters” and post ads online for it. TelexFree filed for bankruptcy in 2014, its assets frozen, and its two principals were indicted on federal charges of wire fraud and conspiracy. The other, Carlos Wanzeler, fled to his native Brazil where he remains, U.S. prosecutors said. On Dec. 31, Rocha, acting as a courier for Wanzeler’s nephew, flew to the United States and subsequently met on Wednesday with the cooperating witness, whom he gave $2.2 million in a suitcase, according to authorities. After the meeting, federal agents followed Rocha to an apartment complex in Westborough, Massachusetts.
– You'd think that much cold, hard cash would make for an uncomfortable night's sleep. The AP reports a 28-year-old Brazilian man was arrested this week in Massachusetts after authorities found about $20 million hidden in a box spring. The arrest of Cleber Rene Rizerio Rocha is connected to an investigation into TelexFree, an alleged pyramid scheme, according to Reuters. Authorities say TelexFree was originally created to swindle Brazilian immigrants but ended up taking $1.8 billion from nearly 1 million people around the world. Authorities say Rocha, acting as a courier for the nephew of TelexFree's founder, delivered a suitcase containing $2.2 million to a cooperating witness. They then followed him to an apartment where they found $20 million more under a mattress. He's been charged with conspiring to commit money laundering.