telexfree-logoAs part of the order staying discovery in the TelexFree civil case until criminal proceedings are concluded, the court requested that the Department of Justice file a report on the status of the criminal proceedings on January 15th.

As per this order, the DOJ’s filed status report sheds some light on the current progress of the criminal case against Telexfree.

The criminal case is proceeding smoothly.

Over the last few months, the government has steadily produced discovery materials to the defense, and certain materials still remain to be provided – there is a substantial amount of electronic and paper discovery from several sources in this case, as well as materials that continue to arrive from law enforcement authorities overseas and in response to search warrants to internet-based service providers.

Evidence collected by regulators handling the case includes

  • 46 servers of data from TelexFree itself, along with about 40 boxes of hardcopy materials
  • about 100,000 pages of information subpoenaed from banks, payment processors, accounting firms, and other entities
  • about 12 boxes worth of financial data from the SEC
  • 81 gigabytes of data (about 355,000 pages) from the trustee administering TelexFree’s affairs

Additionally the DOJ are still in the process of receiving ‘data in response to five email search warrants and a search warrant to
YouTube for hundreds of video clips and supporting business records‘.

Working closely with authorities in Brazil, the DOJ also claim that

authorities in Brazil have, so far, executed nine search warrants relevant to this case and have collected substantial
amounts of additional evidence, including bank records and the like.

The government is negotiating with the Brazilians to receive that information.

Unfortunately a roadmap for a trial has yet to be etched, with the DOJ anticipating

additional status conferences before discovery is complete.

At this stage, assuming the case goes to trial, it would be difficult to predict a trial date.

Another status report is due to be filed in three months time.


Footnote: Our thanks to Don@ASDUpdates for providing a copy of the DOJ’s January 2015 Status Report.