Hanna Shea settlement sees firm keep $20,000 TelexFree fee
As part of the TelexFree Trustee’s clawback rampage filed back in April, Hanna Shea Consulting was sued for $20,000.
Rather than accept they had received stolen Ponzi funds as compensation and return the money for distribution to victims, Hanna Shea doubled down and filed a claim for an outstanding balance of $17,500.
Negotiations between the Receiver and Hanna Shea have been progressing since April, with news today of a settlement agreement reached.
As per the settlement agreement, Hanna Shea will keep the $20,000 TelexFree paid them and drop the claim for $17,500.
The settlement agreement also discloses previously unknown specifics about the services Hanna Shea provided to TelexFree.
On their website, Hanna Shea Consulting claim to be the
“go-to” company for the Direct Sales industry.
Building from a foundation of “ethics first” in everything we do, we treat each and every search and candidate with an unmatched level of respect.
At Hanna Shea, it is our mission to help business grow by matching the right talent with our clients unique staffing and consulting needs, and to build fulfilling careers for the executives we place.
In late 2013 TelexFree and Hanna Shea entered into an agreement over the hiring of TelexFree’s new CEO, Stuart MacMillan.
Hanna Shea’s fee was to be 25% of the officer’s first year salary. In this case the fee was to be $56,250.
In November 2013, TelexFree made an initial payment of $18,750 to Hanna Shea.
The new employee was placed with TelexFree around February 2014.
In a nutshell, MacMillan was brought on to orchestrate TelexFree’s bankruptcty opera.
Hanna Shea billed TelexFree for the balance of the fees in March 2014. In March 2014 and April 2014 TelexFree made two installment payments of $10,000 each, for a total of $20,000.
As justification for keeping stolen Ponzi funds, Hanna Shea argue ‘the payments were made in the ordinary course of business for consideration rendered‘.
Citing ‘the costs, delays and uncertainty of litigation‘ in pursuing the matter, the proposed settlement agreement was filed on October 3rd.
A decision on the agreement is expected either later this week or next.
Update 29th October 2016 – On October 28th Judge Hoffman approved the proposed Hanna Shea settlement.