According to the Boston Globe, Federal Securities regulators filed a motion requesting the bankruptcy judge in the TelexFREE case to move the case to Massachusetts.

According to the filing, the hastily filed bankruptcy on a Sunday evening in Las Vegas, just two days before the Marlboro, MA TelexFREE offices were raided, was an act of "blatant forum shopping".

The SEC urged the judge not to reward such behavior.

The US Department of Justice has also requested control over the company and assets during the pending bankruptcy. Over thirty-eight million dollars in cashier's checks were recovered when the company's CFO, Joseph H. Craft, attempted to leave the building after a judge ordered the company's assets frozen.