Why TelexFree victim distribution payments are taking so long
There’s probably no group more salty in MLM right now than TelexFree victims with approved claims.
The TelexFree claim portal went live back in mid 2016. Almost three years later, not one distribution payment has been made.
Now, a Status Report filed by the Trustee on April 12th, provides insight into why.
Not surprisingly, while it may appear nothing much is going on inside the Trusteeship, that’s not the case.
Of the 131,351 claims filed, 99,549 were only partially allowed.
To get to that point however, the Trustee had to undergo the following process:
- send a notice to claimants informing them that their claims did match TelexFree records;
- wait for a response (if any) for 30 days;
- if no response was received file a notice with the court either allowing or disallowing the claim and serve the same notice to the claimant;
- wait for a response (if any) for 14 days;
- if a response to the initial notice was received, negotiate with claimant with the aim of resolving the claim;
- file an affidavit notifying the court the claim had been resolved; or
- file an omnibus objection detailing why the claim was disallowed.
Yep, that process had to occur for almost one hundred thousand individual claims.
And if the responses I’ve seen filed over on the Trustee’s website are anything to go by, the process is a complete nightmare.
This comes down not so much to the process itself, but to idiots clogging up the system.
To give you an idea of just how pervasive the idiocy among TelexFree victims is, here’s some perspective;
- just 38 of the 98,549 claims were resolved on the first notice;
- a further 33 claims were resolved after a second notice was sent;
- 1360 claimants didn’t bother responding to any notices sent;
- the $45 million in claims resolved by the first 38 claimants, were eventually reduced to just $372,403;
- the $1.03 million in claims outstanding as of a second notice being sent, were eventually reduced to $194,983;
- the $54 million claimed by claimants who failed to respond has, upon examination, been reduced to $6.4 million;
And these are just the resolved claims. There are tens of thousands of “where’s muh Ponzi money?!” disputed claims the Trustee team has had to process.
More than 12,000 claims received were by scammers who stole more money from actual TelexFree victims than they “lost”.
$587 million in bogus claims have been rejected outright.
777 TelexFree affiliates filed claims after the final bar date, seeking $34.3 million. All of these claims have been rejected.
And those are just the numbers we have as of April 12th.
The claims determination process is ongoing and, as set forth above, substantial progress has been made.
The Trustee will continue to pursue resolution of the remaining unresolved claims.
Part of that process will see the Trustee file its omnibus objections, denying outstanding claims en masse.
No, we don’t have a timeframe for that.
What I will leave you with is the following thought:
If you are a TelexFree victim waiting on a distribution payment, the next time you feel a sense of impatience coming on, imagine yourself in a room with the rest of the claimants.
Look to your left, and then your right.
There’s a good chance at least one of the claimants standing next to you has claimed far more than they were entitled to.
Getting to the bottom of their bogus claim and determining what they’re actually entitled to claim (if anything), has and continues to waste your time and Trustee resources.
Remember, TelexFree was a Ponzi scheme that attracted gullible idiots who thought they were going to get rich quick. You were one of those idiots.
That’s the harsh truth of it. Getting angry at the Trustee or whinging on here isn’t going to make the claims process go any faster.