Ponzi Tracker Reports: Stephen Darr Appointed As TelexFree Trustee

An independent trustee has been appointed to manage the business operations of TelexFree Financial, LLC; TelexFree, LLC; and TelexFree, Inc. (collectively, “TelexFree”), the consortium of entities currently accused by state and federal regulators of operating a massive pyramid/Ponzi scheme that raised hundreds of millions of dollars from victims.  Stephen B. Darr’s appointment as Chapter 11 Trustee was made public in a filing by the Assistant U.S. Trustee in a Massachusetts bankruptcy where the TelexFree bankruptcy is currently pending.  In connection with his appointment, Darr’s bond was set at $1 million.

Darr is a principal of Mesirow Financial Consulting, LLC, an independent financial services firm that provides a wide array of corporate services, including restructuring, management, and consulting. Darr currently works out of Mesirow’s Boston office, where he serves as the Senior Managing Director. Darr has significant experience in providing financial advisory services to complex restructuring matters, including past engagements with well-known failed companies RefCo and WorldCom.

The Rest Of The Story…Ponzi Tracker Reports: Stephen Darr Appointed As TelexFree Trustee

Ponzi Tracker Reports: Zeek Receiver Seeks Approval For 40% Distribution

Nearly two years after his appointment, the court-appointed receiver for the $600 million Zeek Rewards Ponzi scheme has asked a North Carolina federal court for approval to make an initial 40% distribution to over 100,000 victims.  The Receiver, Kenneth D. Bell, filed his Motion to Authorize First Interim Distribution, Establish Record Dates, and Set First Interim Distribution Date (the “Distribution Motion”) yesterday.  In the Distribution Motion, the Receiver seeks to begin making distributions to victims as soon as September 30, 2014.

The Securities and Exchange Commission filed an emergency enforcement action against Zeek Rewards in August 2012, alleging that the wildly popular online penny-auction site was, in reality, a massive pyramid and Ponzi scheme that was on the verge of collapse.  After a claims process was initiated last year, Bell ultimately received approximately 175,000 claims asserting cumulative losses of over $650 million.

The Rest Of The Story…Ponzi Tracker Reports: Zeek Receiver Seeks Approval For 40% Distribution