Politics & Government
Galvin: Marlborough Firm Ran Ponzi Scheme
TelexFREE allegedly targeted Brazilian immigrants.
A Marlborough firm is being investigated for bilking as much as $90 million from residents in the state, according to the Boston Herald.
TelexFREE allegedly created a scheme to funnel investments from older investors to pay new ones, according to investigators. Brazilian immigrants and other minorities were targeted, according to officials. Secretary of State William Galvin called it one of the largest Ponzi schemes in recent memory.
The company reportedly sold itself like a multi-level marketing service where investors purchased online ads to sell software and were then guaranteed a return on the investment. If more people were brought in, bonuses were paid out.
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