Middle East Consultants ups Telexfree
Someone has been asking, ” is Middle East Consultants a new face of Telexfree?” Well, Telexfree is a ponzi scheme that was operated by a one Ronald Muramuzi, who cheated Uganda’s Uganda’s job seekers in early 2014.
This comes at a time when many Ugandans who seek to work abroad are tricked into paying money to labour exporters who make them wait for years. Middle East Consultants have gone too far; they run fake adverts in churches and on media, yet no job orders.
RONALD MURAMUZI’S TELEXFREE
TelexFree ended in May, 2014 after its boss, Ronald Muramuzi was arrested and detained in Luzira. The law enforcement agencies and courts around the world investigated and, prosecuted suspects in the multi-billion multinational internet fraud scheme. If Uganda was serious these labour export companies would face the same.
Can you imagine, by the time Rwanda issued a ban on its operations in March 2014, the company, registered locally in the country, had reportedly laundered over USD 10 millions!
In Uganda, over 5,000 people are estimated to have signed up for the program. But that represents only a small percentage of the people that lost their money in online schemes that year alone.
Local reports indicated that over 7 billion Uganda Shillings (USD 3million) was lost in the process.
According to Police, a one, Ronald Maramuzi in 2012 started up different websites which were to sell memberships that promised annual returns of 200 per cent or more for those who promoted the companies by recruiting new members and placing the companies advertisements on free internet ad site
Muramuzi registered companies that ran high-yield investment programs (HYIP), including Tesco Trader, Adfast Inc, Telex Free, Bank Electro, United Hype League and Massive Ads, but all opened under different names Morgan Mugisha, Bob Mugisha, Muramuzi Ronald Kato and Kato Ronald.
A HYIP is a type of Ponzi Scheme, an investment scam that promises unsustainably high return on investment by paying previous investors with the money invested by new investors. Most of these scams worked from anonymous offshore bases which made them hard to track down.
In USA, TelexFree Inc. co-owner James M. Merrill was tried by a federal judge in Worcester in that same year.
According to the US attorney’s office, Magistrate Judge David Hennessy made the ruling in the $1 billion fraud case. Marlborough-based TelexFree and its principals were charged with fraud in separate civil and criminal actions.
Merrill’s partner, Carlos Wanzeler, fled to his native Brazil and was considered a fugitive by US authorities. Wanzeler’s wife, Katia, tried to leave the country but was arrested in New York.
TelexFree sought bankruptcy protection in April, 2014 days before state and federal securities regulators filed civil fraud charges against the company for allegedly running a global pyramid scheme.
Telexfree’s Brazilian operations were regarded as one of the largest financial frauds in Brazil’s history, according to Brazil’s Ministry of Justice and the Federal Public Ministry. The number of investors (labelled as “promoters” by Telexfree) had not been determined; by the end of August 2013, just after companies’ suspension, Company Director Carlos Roberto Costa said that the company had 1,049,619 active promoters in Brazil.
In April 2014, an investigation in the United States confirmed that Telexfree worked under a Ponzi scheme and handled more than $1 billion worldwide. The conclusion was made by SEC-MA, the agency that regulates the financial transactions in the company’s home state of Massachusetts.
Just like Muramuzi in Uganda, the Brazilian founders served prison prison sentences. Today, Ugandans are suffering from Middle East Consultants.