TelexFree delay preliminary injunction hearing
According to the SEC vs. TelexFree case docket, on the 23rd of April TelexFree filed an emergency motion seeking to delay the hearing for the permanent injunction.
The company sought to set a new date for the hearing on May 5th, with the temporary restraining order to remain in place until then.
The reason cited for the delay is that TelexFree claim they need more time ‘to respond fully to the plaintiff’s request for a preliminary injunction‘.
With the date set three days after the final hearing in the Nevada bankruptcy case however, it appears the real reason TelexFree filed the emergency motion is to see what happens there first.
TelexFree have made it no secret they believe the Nevada bankruptcy filing will absolve them of all responsibility for the running of a billion dollar plus Ponzi scheme.
Yesterday saw the filing by the SEC to move the bankruptcy hearing to Massachusetts, which is expected to be heard by the end of the week. The DoJ have also filed a motion asking that a US Trustee be appointed to the case, which would effectively put the application in the control of regulators.
The DoJ motion I’m not sure on but due to the filing of an application to shorten the time to hear their motion, I expect the SEC motion to be heard by the end of the week. That would pretty much eliminate the confusion which is evident in today’s granting of TelexFree’s emergency motion.
Ruling on the motion, Judge Gorton granted the motion and ordered that a new hearing date be set for May 7th. The temporary restraining order, covering all defendants has been extended till April 25th, with a hearing for a preliminary injunction to be entered into against the remaining defendants (Faith Sloan, Randy Crosby, Santiago De La Rosa, Sanderly Rodrigues de Vasconcelos and Steve Labriola), to be heard on the same day.
Note that upon seeing the delaying of the preliminary injunction hearing for Joseph Craft, Carlos Wanzeler, James Merrill and TelexFree granted, Steve Labriola has also now filed his own request for a delay. That motion however hasn’t been ruled upon yet.
Labriola is claiming that he’s only just now retained an attorney on April the 23rd itself. As such, Labriola is claiming he needs more time because he hasn’t yet met with the attorney, nor is the attorney familiar with the case.
What Labriola has been doing up until now is unclear.
Looking forward, we now wait for a possible ruling on the SEC’s motion to move the bankruptcy hearing to Massachusetts by the end of the week, which would effectively put a stop to TelexFree’s abuse of the bankruptcy court. Till then, the company continues to dig itself a deeper hole, under the misguided notion that a Nevada Judge will grant them the relief they seek.
Namely the tearing up of the $1 billion in AdCentral ROI contracts the company currently owes its affiliates.
Footnote: Our thanks to Don @ ASD Updates for the tipoff.