Telexfree Finds a Home in Canada

[webhick]

Isaacs issues don't exempt him from the same rules of decency we all abide by here. So no, I don't have to consider the source.

Anyone who can't check that kind of shit at the door will feel my wrath.

[JamesVincent]

http://www.npros.com/press/2014/7/15/32 ... e-case.htm

July 14, 2014 -- U.S. prosecutors asked the U.S. District Court in Boston to deny James Merrill's request for access to $4 million in funds currently frozen by the Securities and Exchange Commission. Merrill, a co-founder of TelexFree, requested access to the funds to help pay for his defense.

U.S. Attorney Mary B. Murrane, in a 15-page submission to the court, said "The funds Merrill asks the court to release...are investor funds - money victims gave to TelexFree during the course of the alleged fraud. The defendant cannot use forteitable victim funds to pay for his defense, much less an unusually expensive one."

Haven't seen anything more recent but would imagine they didn't allow him to use the funds he wanted.

[JamesVincent]

http://www.npros.com/press/2014/7/25/32 ... -court.htm

The indictment includes eight counts of wire fraud, and seeks $140 million seized from TelexFree's account and other assets forfeited by the owners. The indictment also claims Merrill wired over $10 million in company funds to personal accounts controlled by himself and Wanzeler.

Each count carries a maximum sentence of 20 years.

[JamesVincent]

A couple of websites for those who have an interest in the bankruptcy:

http://www.kccllc.net/TelexFree

By order dated July 31, 2014, the Bankruptcy Court approved the Trustee’s employment of KCC as claims and noticing agent in these cases. All proofs of claim should be submitted directly to KCC. No claims should be sent to the Bankruptcy Court or to the bankruptcy Trustee. We anticipate that claims may be submitted electronically to KCC at a future time.

PLEASE NOTE THAT NO DEADLINE HAS BEEN SET FOR FILING CLAIMS. BY ORDER DATED JULY 3, 2014, THE BANKRUPTCY COURT REMOVED THE DEADLINE PREVIOUSLY SET. ONCE A NEW DEADLINE HAS BEEN ESTABLISHED, THAT DATE WILL BE POSTED ON THIS SITE AND CREDITORS WILL BE PROVIDED FURTHER INSTRUCTION FOR COMPLETING CLAIMS AND ANY ATTACHMENT.

If you have a claim against Telexfree this is where you start. It is the website set up by the bankruptcy trustee just for that purpose.

http://www.mab.uscourts.gov/mab/news/te ... bankruptcy

This is the webpage of the Federal Bankruptcy Court, District of Massachusetts where the bankruptcy will be heard. Any pleadings or issues in the case *should* be found here.

[JamesVincent]

http://www.npros.com/press/2014/10/2/32 ... exfree.htm

September 30, 2014, Worcester, MA -- Massachusetts Secretary of State William F.Galvin is concerned that a new phone service app is an offshoot of TelexFree and is warning people to be wary of investing in iFreex. Complaints have been made against Sanderley Rodrigues de Vasoncelos (AKA Sann Rodrigues), who was once a top rep to TelexFree and has said on his Facebook page that iFreex "would be the new TelexFree", a news release from the secretary of state's office said. Mr. Rodrigues has been charged by the SEC in the TelexFree case and was charged in a similar scheme in 2006.

[notorial dissent]

Grifters gotta grift, and they almost universally all think they're smarter and more clever than everyone else.

[JamesVincent]

http://patrickpretty.com/2014/10/28/tel ... ed-oct-16/

The TelexFree probe continues in the United States, with prosecutors revealing today that federal agents served a search warrant on Google on Oct. 16 that sought a “substantial amount” of content on YouTube.

Precisely what content prosecutors are seeking was not immediately clear.

Google told agents that “compliance will take several weeks,” according to the prosecution filing.

Regulators have warned for years that HYIP scams are spreading through promos on social media such as YouTube, Facebook and Twitter.

Today’s prosecution filing also revealed that undercover agents attended multiple TelexFree functions, not just a conference in Boston in March.

[notorial dissent]

Yeah, but when you put it out on the googles, anyone can get their hands on it, and apparently do. Kind of like leaving a signed confession in 300 million mail boxes.

Which is why it is so much fun when the sovits film their scams du jour and post them to show their expertise and brilliance, makes the prosecution so much easier.

[JamesVincent]

At least $153 million could potentially be used to settle claims of people who can prove they were defrauded by TelexFree Inc. For most, it will be a long wait before they receive any of their money back.

$3.5 million which resulted from a settlement by Massachusetts Secretary State William F. Galvin may soon be made available to reimburse victims. Galvin secured the funds by suing Fidelity Bank, which is run by the brother of TelexFree principal, James Merrill. The bank neither admitted nor denied Galvin's claims that it failed to fully vet TelexFree as a client, but settled the lawsuit. Claimants who wish to apply for funds must be Massachusetts residents.

An additional $150 million could be held up for some time. Before any claims against the funds seized by the Department of Justice or held in TelexFree's bankruptcy case can be processed, the company's principals must be found guilty of criminal fraud and the court must approve a claims process. Victims who want to apply for funds from the US Attorney's office must fill out an online claim form in English on an FBI website. Many of the victims are undocumented immigrants, which may make them reluctant to file a claim, despite assurances that doing so will not bring them to the attention of immigration authorities.

http://www.npros.com/press/2014/11/28/3 ... claims.htm

[JamesVincent]

http://www.npros.com/press/2015/8/16/34 ... checks.htm

August 14, 2015 -- Thousands of former TelexFree customers have received checks from a $3.5 million fund set up by Fidelity Co-operative Bank of Fitchburg, MA as part of a settlement with the Securities Division of Massachusetts last year. The bank was accused of inadequate oversight and failure to detect suspicious activity in TelexFree's accounts. More than 14,000 Massachusetts residents were sent checks for $205.52 each.

[JamesVincent]

http://www.npros.com/press/2015/4/16/33 ... exfree.htm

A class-action lawsuit has been filed against TelexFree Inc., consolidating the complaints of at least 780,000 alleged victims and accusing the company, its principals and top promoters of "knowingly, maliciously, and willfully" conspiring "to perpetrate...the TelexFree pyramid scheme with full awareness of its unfair, deceptive, and unlawful nature." The 200-page complaint names a number of service providers, including banks and accountants, alleging that they "were negligent or reckless in providing advice, directly participated in," or provided "essential substantial assistance" to TelexFree, despite knowing it was conducting an illegal pyramid scheme. Included in the list of service providers named in the lawsuit are Bank of America Corp. and PricewaterhouseCoopers.

The lawsuit alleges that Bank of America and PricewaterhouseCooper continued to do business with TelexFree after learning the company had been shut down in Brazil for conducting a pyramid scheme. According to the complaint, Bank of America questioned TelexFree about its business in spring of 2013 and "had echanges with TelexFree about terminating their relationship and discontinuing the service of their accounts, but never did."

The complaint also alleges that PricewaterhouseCoopers "negligently advised" TelexFree to prepare inaccurate 1099 tax forms to participants who had lost money with the company.

[notorial dissent]

I would normally say in my cynical voice with rhetorical attachmentspat pen, "I can't believe they actually did that" "PricewaterhouseCoopers "negligently advised" TelexFree to prepare inaccurate 1099 tax forms to participants who had lost money with the company", but I think it goes beyond negligence and to a pattern. I've had trust issues with PW ever since they started gobbling up the competition, and they seem to have a track record of this sort of thing. I've seen too many instances where they signed off on a company, ENRON comes to mind, that was rotten to the core.