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Feds recover $20 million in CASH under mattress linked to pyramid scheme

January 24, 2017  |  Posted by: JammedUp Staff
Feds recover $20 million in CASH under mattress linked to pyramid scheme

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Federal authorities have recovered $20 million dollars in cash hidden under a mattress inside a Massachusetts apartment which is reportedly related to a $1 billion pyramid scheme, officials say.

The U.S. Attorney said the money is tied a Massachusetts-based company called Telex-Free, which claimed to provide Internet phone services.

However, investigators said in acuality, the company was a pyramid scheme which operated between January 2012 and March 2014, , ABC News reported.

“TelexFree purported to aggressively market its VOIP service by recruiting thousands of ‘promoters’ to post ads for the product on the Internet,” Justice Dept. officials said in a statement.

The DOJ said sponsors involved had to “buy in” to TelexFree at a set price and in return were to be compensated weekly “under a complex compensation structure, but were still required to post ads for ‘TelexFree’s VOIP service on the Internet.'”

Authorities uncovered the cash during a raid at the apartment of 28-year-old Cleber Rene Rizerio Rocha in Westborough, Mass. earlier this month.

Federal prosecutors have since charged Rocha with one count of conspiring to commit money laundering.

Feds said in 2013, TelexFree reported sales of $1.02 billion, which was revenue mostly derived from people who bought into the companies illicit scheme.

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