TelexFree @ BehindMLM

A few months ago the TelexFree Trustee filed a heap of lawsuits against insiders and merchants who worked with the $3 billion Ponzi scheme. One of the merchants who accepted payment from TelexFree was Joele Frank Wilkinson Brimmer Katcher, a New York based PR firm.

Yesterday I was contacted Huron Consulting Group, Financial Advisor to the TelexFree Trustee, requesting assistance in getting word out about the victim claims process. In addition to covering the claim portal going live last week, here’s a copy of the official Notice of Deadline For Filing Electronic Proofs of Claim and Claims Procedures.

James Merrill’s criminal trial is currently scheduled for October 3rd, just over four months away. Thus far whatever defense Merrill has planned has been kept under wraps. On the offense side of things though, Merrill has gone all out in a hilarious set of motions filed from May 20th… According to his filed motions, Merrill wants all seized [Continue reading…]

Last month the TelexFree Trustee estimated the TelexFree victim claims portal would go live in early May. Slightly late but better than never, the victim claims portal has just gone live.

So weak was Faith Sloan’s case for requesting a carve-out of $30,800 in suspected stolen Ponzi funds, that the Judge signing the order didn’t even bother to provide a reason for its denial. On May 17th Judge Gorton denied Sloan’s second carve-out request with a scribbled “motion denied”, dated and signed.

Back in April Faith Sloan demanded the release of $30,800, currently frozen as per a preliminary injunction granted in May, 2014. Having previously had a similar motion denied by the court, the SEC’s response to Sloan’s latest filing can be paraphrased as “nothing has changed since”. That didn’t stop Sloan going gangbusters and invoking all manner [Continue reading…]

Scott Miller was a top investor in the TelexFree Ponzi scheme. For his part in scamming TelexFree victims out of $3 billion dollars, a preliminary injunction was granted against Miller on February 14th, 2016. The injunction is part of a civil class-action against several top TelexFree investors. The injunction freezes any ‘assets, including, without limitation, [Continue reading…]

In another blow to TelexFree’s Brazilian based Ympactus, the company has been fined $1.5 million for “crimes against the economy”. The fine stems from a National Bureau of Consumer Law (Senacon) investigation, which found Ympactus operated as a “Ponzi pyramid scheme”.

Dating back to early March, the TelexFree Trustee has filed no less than thirteen clawback lawsuits against non-investors who profited from TelexFree. Under counts of fraudulent transfer filed in adversary proceedings, the parties the TelexFree Trustree is suing are as follows:

In a court filing that flew under the radar until Patrick Pretty reported on it earlier today, TelexFree’s top US investors have been named and shamed. Sorted by the amount of money they stole from victims in the $3 billion dollar Ponzi scheme, the one hundred and five TelexFree affiliates cited in the filing are as follows: