Patrick Pretty BULLETIN: Trustee: ‘It Appears That [TelexFree’s] Merrill, Wanzeler, And Craft Have All Fallen Down The Rabbit Hole And Are Now Expecting The [Bankruptcy] Court To Follow’

BULLETIN: In a blistering response to TelexFree’s bid to continue its business and move forward with its Chapter 11 bankruptcy case, the United States’ trustee said the embattled firm has not engaged in “in full and fair disclosure.” “The former CFO and board members have disappeared with no explanation,” U.S. Trustee Tracy Hope Davis alleged. “The […]

Patrick Pretty Reports: SEC: TelexFree’s Sann Rodrigues On YouTube: God Started MLM And Made ‘Binary’; ‘I Am Never Going To Stop This’

(UPDATED 8:21 P.M. EDT U.S.A.) The U.S. Securities and Exchange Commission says in new court filings that accused TelexFree promoter and securities fraudster Sann Rodrigues appeared in an April 16 YouTube video and asserted that “God” made MLM and “binary” and that Rodrigues claims he’s “never going to stop this.” Rodrigues is now a two-time […]

Behind MLM Reports: TelexFree Court Status – 30th April 2014

The big news on the 30th was the granting of a preliminary injunction against TelexFree top pimps Santiago De La Rosa and Randy Crosby. In addition to this order, which was handed down in Massachusetts, several other filings were made in the Nevada bankruptcy court. As at the 30th of April 2014, here’s where we’re [Continue reading…]

Source: TelexFree Court Status – 30th April 2014

Read the full article and join in the discussion over at BehindMLM.

Behind MLM Reports: De La Rosa & Crosby preliminary injunction granted

A sign of what’s to come on May 2nd? Following a hearing on April 25th and despite responses being filed in protest by both Randy Crosby and Santiago De La Rosa, on the 30th of April the Massachusetts District Court granted a preliminary injunction against the two. Relying on TelexFree’s business model and evidence collected [Continue reading…]

Source: De La Rosa & Crosby preliminary injunction granted

Read the full article and join in the discussion over at BehindMLM.

Ponzi Tracker Report: Six Suicides Linked To TelexFree Collapse

Last week, both state and federal regulators alleged that TelexFree, Inc. and related entities were a massive Ponzi and pyramid scheme that may have raised hundreds of millions of dollars from victims worldwide.  In addition to the financial carnage inflicted on these victims, many of whom invested significant sums, one recent report claims that at least six people have committed suicide in the wake of the scheme’s collapse.  According to Dominican Today, one well-known TelexFree promoter has claimed that at least six recent suicides in the town of El Seibo, Dominican Republic, are attributable to TelexFree.

Maria Cordones, originally from the Dominican Republic but currently residing in New York, indicated that she had recruited at least 40 people to invest in TelexFree, which promised exorbitant returns in exchange for several minutes of work daily that purportedly entailed approving computer advertisements.  For example, an investment of $1,375 resulted in a weekly payout of $100 – an annual return of over 200%.  Authorities have estimated that TelexFree raised at least $300 million from United States investors alone.

One reason for TelexFree’s popularity was its practice of incentivizing investors to recruit new investors to the scheme.  This incentive-based system rapidly expanded the scheme’s reach, and the promised returns were especially well-received in poorer countries such as the Dominican Republic and Brazil.  According to Cordones, the 40 people she recruited in the Dominican Republic – where the average annual wages pales in comparison to larger countries – collectively lost thousands of dollars.

A morbid topic that is not often discussed, suicides attributable to Ponzi schemes do occur.  In one particularly grim example, at least ten suicides were linked to the collapse of of a massive Indian Ponzi scheme last year.  Given that the suicides linked to TelexFree are isolated to one town in Dominican Republic, the possibility certainly exists that this number could increase.

Patrick Pretty Reports: FROM COURT FILINGS: TelexFree Promoter Faith Sloan To SEC: ‘Why Are You Picking On Me?’

(UPDATED 1:03 P.M. EDT U.S.A.) When contacted by the U.S. Securities and Exchange Commission April 17 by phone, alleged TelexFree promoter and securities swindler Faith Sloan shot back, “Why are you picking on me? There are bigger promoters than me.” The assertion is contained in new SEC filings dated yesterday in the agency’s Ponzi- and […]

Ponzi Tracker Reports: Claim Deadline Set For Victims In TelexFree Bankruptcy

Victims of the alleged TelexFree pyramid and Ponzi scheme, including over 700,000 so-called “promoters” promised annual returns exceeding 200%, must file a Proof of Claim in TelexFree’s bankruptcy proceeding on or before August 20, 2014 according to a Notice filed today.  The Nevada Bankruptcy Clerk of Court filed a Notice of Chapter 11 Bankruptcy Cases, Meeting of Creditors, and Deadlines (the “Notice”) today setting various deadlines, including the initial meeting of creditors and the due date to file a proof of claim.

According to the Notice, a Meeting of Creditors is scheduled for May 22, 2014 at 3:00 P.M. in the Jury Assembly Room of the Lloyd D. George U.S. Courthouse in Las Vegas, Nevada.  The meeting, known as a 341 Meeting in Bankruptcy parlance for its reference in the U.S. Bankruptcy Code, does not require attendance of all creditors but does require attendance of the debtor(s).  At the 341 Meeting, the debtor will be examined under oath, and there is typically the opportunity for creditors to pose questions to the debtor.

In addition to the scheduling of the 341 Meeting, the Notice also established the deadline by which any creditor must file a proof of claim.  Pursuant to the Notice, all creditors (except governmental units) must file their Proof of Claim within 90 days after the 341 Meeting – resulting in a claim deadline of August 20, 2014.  Creditors must file their Proof of Claim forms with the Claims Agent for the Debtor, whose address is:

TelexFree Claim Processing

c/o Kurtzman Carson Consultants LLC

2335 Alaska Avenue

El Segundo, CA 90245

The Notice specifically forbids creditors from filing Proof of Claim forms with the Court, and failure to heed this warning could result in serious consequences.  Indeed, the untimely submission of a Proof of Claim can result in the claim’s denial.

Previous Ponzitracker coverage of TelexFree is here.

A sample Proof of Claim form is below.  Ponzitracker will provide an in-depth guide to submitting a Proof of Claim form in the near-future: