Over a decade since the shutdown of TelexFree, a group of TelexFree net-winners have settled with the court-appointed Trustee.

A net-winner in a Ponzi scheme is an investor who withdrew more than they invested. In TelexFree the net-winner class numbers in the thousands.

The TelexFree defendant net-winner class is represented by Frantz Balan (US), Marco Puzzarini and Sandro Paulo Freitas (overseas).

A Joint Motion seeking preliminary approval with the TelexFree net-winner class was filed on August 15th.

Terms of the settlement were sent out to all TelexFree investors classified as a net-winner by the Trustee.

Under the terms of the settlement, the TelexFree net-winner class will individually be liable for no more than

  • 100% of net Direct Transactions, i.e. money directly invested into TelexFree or received from TelexFree to redeem credits;
  • 85% of net Triangular Transactions, i.e. accepting money from recruited investors and using credits to fund their accounts; and
  • 75% of net Credit Transfers, i.e. the transfer of credits from a net-winner’s TelexFree account to that of another

The court granted preliminary approval of the settlement on November 18th.

The TelexFree Trustee has been instructed to provide notice of the settlement to both net-winners and net-losers by December 3rd, 2024.

Net-winners in the net-winner class can file objections to the approved settlement by February 20th, 2025.

A Final Approval Hearing is then scheduled for March 6th, 2025.

Thus far TelexFree victims with allowed claims have received two distribution payments from the Trustee. The second distribution took place in 2022 and raised victim recovery to around 45%.

It’s expected following approval of the TelexFree net-winner class that additional distribution payments will be made. There is of course no timeline for this.

 

N.B. BehindMLM isn’t the place to ask for legal advice. Any TelexFree net-winners seeking legal advice should consultant a lawyer.