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The Boston Globe

Business

TelexFree owners charged with fraud

One arrested, other a fugitive in alleged $1b pyramid scheme

The two owners of a Marlborough company accused of bilking investors in a global $1 billion pyramid scheme were criminally charged in federal court Friday, a major escalation of an ongoing investigation into the firm.

James M. Merrill, 53, of Ashland, co-owner of TelexFree Inc., was arrested Friday afternoon in Worcester. Authorities also have issued a warrant for the arrest of co-owner Carlos N. Wanzeler, 45, of Northborough, who is now a fugitive. He is believed to have fled to Brazil, federal officials said earlier this week.

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