TelexFree victims to initially recover 40%, IRS claims resolved
Just under two weeks ago BehindMLM called out the TelexFree Trustee for failing to communicate with victims.
Today the Trustee has finally provided an update on parallel IRS proceedings and distribution payments.
In our April 19th article we cited the IRS’ $429 million dollar claim as a major risk to TelexFree victim claim distributions.
In light of that, the Trustee advises that he has
reached an agreement with the Internal Revenue Service to resolve the disputed matters.
Details of the agreement have not been made public. Given the Trustee goes on to talk about distribution payments however, we imagine the IRS isn’t going to claim anywhere near the original $429 million amount.
With respect to distribution payments, the Trustee writes;
My counsel and I are in the process of preparing a Plan of Liquidation for filing with the Bankruptcy Court which, if confirmed by the Bankruptcy Court, will allow me to distribute the available funds to TelexFree participants who have allowed claims in the Bankruptcy Cases.
I estimate that the initial distribution to TelexFree participants will be approximately 40% of their allowed claims.
There may be additional distributions in amounts to be determined as funds become available.
At some point in the future TelexFree victims with a valid claim will be given further information,
including a ballot for you to vote on the Plan, that you will need to complete and return in order to vote on the Plan and to receive your distribution.
We don’t have a timeline on that, but here’s hoping it doesn’t take another four years.
Bit sucky to those who sold their claims for 10%.
No refunds. Sorry for your loss.
why would they confuse these easily confusable victims, with polls and voting process??? just decide on the best way to do it. and do it.
let’s hope the voting process with these confusable victims doesn’t clog us up another year.
Andrew I dont think it will last that long, Mr Darr lately has been very proactive and I think this will be sorted out in 2020.
Also, let’s not forget that at least we are going to get something back, let’s be grateful for that and as Oz said, imagine how sour the people who sold their claims to PrimeShares must feel right now.
Lulz, as per recent filings on the Trustee website victims are still selling their claims.
While I don’t disagree, I wonder how destitute these people are? $100 to feed your kids now vs. $400 later isn’t an easy choice.
Having said that, they should’ve never joined an MLM company in the first place. Many participants were probably willing-victims, which further proves the message must be clear and simple especially for unsophisticated people:
Don’t join an MLM company. MLM is a scam. If you do make money with MLM, you are stealing it from those you recruit.
I read that the claim companies were offering $1000, leading me to believe they were targeting minimum $1000 claims.
So the hearing is set for the 27th of May via telefone. Let’s hope that this will be a straight forward process.
Does anyone now what is the total amount that people are claiming compared to the total amount of money and assets that Mr Darr has in his possession?
So far 360 millions claimes. Trustee has arround 180 in cash.
Because people are desperate. Because people need money NOW.
And the truth is…the trustee has given NO TIMELINE. So we could still be a good 4-6 months away if not a year from actual money being sent to victims by the trustee.
$346 million in allowed claims as of April 2019. Current figure unknown.
Trustee is sitting on ~$176 million.