Cleber Rene Rizerio Rocha, TelexFree Cash Seizure, MA 2023

BOSTON — A $20 million stash of cash, stuffed inside a box spring in a Westborough, Mass. apartment, has been seized by federal agents in a dramatic takedown tied to the TelexFree pyramid scheme. Cleber Rene Rizerio Rocha, 28, a Brazilian national, was arrested yesterday after allegedly handing over $2.2 million in a suitcase during a meeting at a Hudson, Mass. restaurant.

Rocha was charged in a criminal complaint with one count of conspiring to commit money laundering. He appeared today before U.S. District Court Magistrate Judge Judith G. Dein, who ordered his detention. Authorities say the cash seized in Westborough represents just a portion of the millions still being moved from the U.S. to Brazil in an elaborate offshore laundering network.

The case traces back to April 2014, when federal agents raided TelexFree, Inc.’s headquarters in Marlborough, Mass. That same day, company co-founder Carlos Wanzeler fled to Brazil, where he remains. Wanzeler and James Merrill were indicted in July 2014 for operating TelexFree as a massive pyramid scheme. Merrill pleaded guilty in October 2016 and awaits sentencing.

According to court documents, an intermediary acting for Wanzeler reached out to a local associate to move millions of dollars hidden in the greater Boston area. That associate, now a cooperating witness, allegedly coordinated with Wanzeler’s nephew in Brazil to funnel the cash through Hong Kong, convert it to Brazilian reals, and deposit it into offshore accounts.

Rocha, identified as a courier for Wanzeler’s nephew, flew from Brazil to JFK Airport in New York just days before the exchange. After meeting the cooperating witness in Hudson and delivering the initial $2.2 million, agents tailed him to Westborough. A search of the apartment that night uncovered the remaining $20 million concealed inside the mattress foundation.

The charge against Rocha carries a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain, whichever is greater. U.S. Attorney Carmen M. Ortiz and HSI Special Agent in Charge Matthew Etre announced the arrest. The case is being prosecuted by Assistant U.S. Attorneys Andrew E. Lelling and Neil J. Gallagher, Jr. The complaint’s allegations are presumed innocent until proven guilty beyond a reasonable doubt.