Source: Npros 11/28/2014

TelexFree Victims May Have a Long Wait to Settle Claims

At least $153 million could potentially be used to settle claims of people who can prove they were defrauded by TelexFree Inc. For most, it will be a long wait before they receive any of their money back.

$3.5 million which resulted from a settlement by Massachusetts Secretary State William F. Galvin may soon be made available to reimburse victims. Galvin secured the funds by suing Fidelity Bank, which is run by the brother of TelexFree principal, James Merrill. The bank neither admitted nor denied Galvin's claims that it failed to fully vet TelexFree as a client, but settled the lawsuit. Claimants who wish to apply for funds must be Massachusetts residents.

An additional $150 million could be held up for some time. Before any claims against the funds seized by the Department of Justice or held in TelexFree's bankruptcy case can be processed, the company's principals must be found guilty of criminal fraud and the court must approve a claims process. Victims who want to apply for funds from the US Attorney's office must fill out an online claim form in English on an FBI website. Many of the victims are undocumented immigrants, which may make them reluctant to file a claim, despite assurances that doing so will not bring them to the attention of immigration authorities.

It will be challenging for authorities to determine how much each claimant is owed. Many alleged victims do not understand that they can only claim the amount they put into TelexFree, not the profits they believe they were owed.

View TelexFree Review

Related News

  • TelexFree President Sentenced
    James Merrill, former president of TelexFree, was sentenced on March 22 to six years in prison and three years of probation. Merrill pleaded guilty last October to one count of wire fraud conspiracy and eight counts of wire fraud.

    Merrill founded TelexFree with business partner Carlos Wanzel...  Read More...

  • Agents Seize Approximately 20 Million in Scheme to Launder TelexFree Funds
    January 26, 2017(Boston)--Approximately $20 million in cash hidden inside a box spring in a Westborough, Massachusetts, apartment was seized late yesterday, and a Brazilian man was arrested in connection with conspiring to launder proceeds of the massive TelexFree pyramid scheme.

    Cleber Rene ...  Read More...

  • TelexFree President Pleads Guilty
    Worcester, MA - October 25, 2016 -- James Merrill, president of TelexFree, pleaded guilty to one count of wire fraud conspiracy and eight counts of wire fraud in U.S. District Court. Prosecutors called TelexFree one of the largest Ponzi schemes in history, with nearly 1 million people losing close ...  Read More...
  • TelexFree Exec Requests Suppression of Evidence
    An attorney for James Merrill has requested suppression of evidence seized during a raid of TelexFree's offices in April 2014. In a court filing, Robert Goldstein said the document seizure was "unconstitutionally overbroad" and that his client "respectfully submits that all evidence seized pursuant...  Read More...

 

TelexFree News Archive

New Companies on Npros

Receive News and
Updates from Npros.com

 Send me news updates
 Send me New Companies

RSS Npros News Feed