TelexFree @ BehindMLM

Two brief updates today in the ongoing battle between MLM Ponzi pimps and regulators. Neither really had enough weight for a separate writeup though, so I’ve combined them together below.

That the SEC were going to object when James Merrill requested $4 million in seized funds be released was always a given. Not only because Merrill claimed he needed the money to fund his legal defense but more importantly, because the money had been stolen from TelexFree affiliate investors. Merrill didn’t deny otherwise, but argued that [Continue reading…]

Just over a week ago we saw the TelexFree Trustee issue subpoena requests on some of the bigger names linked to the TelexFree Ponzi scheme. Eight requests were made in total, with the standout names to me being Gerry Nehra (and his lawfirm) and i-Payout. i-Payout were running around telling everyone TelexFree wasn’t a Ponzi [Continue reading…]

Hot on the heels being granted permission to subpoena several individuals and companies in relation to their involvement with TelexFree, Stephen Darr has dropped a second motherload of subpoena requests. No less than eight parties are named in this second round, with Darr requesting permission to “obtain documents” and conduct “oral examinations” for the purpose of [Continue reading…]

Gearing up to battle US regulators in what is ““probably the largest pyramid scheme that’s ever been prosecuted by the Department of Justice” is James Merrill. All-round mister nice guy, devoted father, community pillar, loves his mum and owner of the billion dollar Ponzi scheme, TelexFree. Having thus far appeared to cooperate with regulators, requests [Continue reading…]

The spectacle of the battle between one of the industry’s most prolific Ponzi pimps and the SEC continues. Hat in hand and convinced that, despite her determination to flout recent court orders against her, Faith Sloan approached the Massachusetts District and demanded $15,800 in frozen funds be made available to her. Sloan argued that, despite sinking [Continue reading…]

Yesterday saw a hearing for TelexFree Trustee Stephen Darr’s request for permission to subpoena several companies associated with TelexFree. Darr had also requested permission to conduct depositions with individuals from said companies, with the court granting him permission to proceed. Five such motions were filed by Darr, with three of them granted as proposed. Alvares and [Continue reading…]

After a flurry of action these past three months as US regulators took action against TelexFree, things have finally settled into a lull. One owner, James Merrill, is currently out on bail and awaiting trial. The other, Carlos Wanzeler is on the run in Brazil. Regulators boned his wife’s attempts to flee the US to [Continue reading…]

Kinda saw this one coming… A federal judge has ordered that TelexFree Inc. co-owner James Merrill be released from detention while he awaits trial in the $1 billion fraud case. Under the conditions of his release, Merrill, who was arrested in May, was placed in his wife Kristen Merrill’s custody and must live at his [Continue reading…]

Fantasies about a restructuring and return to business by TelexFree grow dimmer by the day, with news now that the TelexFree Trustee is investigating the company in earnest. Filed on June 12th, Stephen Darr has asked Massachusetts Bankruptcy Court for permission to issue subpoenas on PriceWaterhouseCoopers, LLP (former advisors to TelexFree) William H. Runge (TelexFree’s Chief [Continue reading…]