TelexFree: Bankruptcy Claims Disqualified?

In addition to finding that TelexFree was a Ponzi/Pyramid, Judge Melvin S. Hoffman also issued this decision; allowing the Motion to find TelexFree a Ponzi Pyramid causes “all prior claims files by any person against the debtors or governmental authorities to be disqualified.”

The Trustee must serve a Notice of this by December 7, 2015.





Vemma: Benson K. Boreyko Files Motion to Approve Sale of 25% Interest in LLC

This Motion was filed today in the Vemma case:

Defendant Benson K. Boreyko (“Boreyko”), by and through undersigned counsel, requests that the Court approve the sale of a 25% interest in AZPACK Properties, LLC (“AZ Pack”), an Arizona limited liability company that owns certain real property located in Tempe, Arizona. AZ Pack will be the purchaser of the 25% interest currently held by Mr. Boreyko, for a purchase price of $500,000. A copy of the proposed Purchase and Sale Agreement is attached as Exhibit “A.”

While Boreyko asserts that the proposed transaction does not constitute “assigning, concealing, converting, disbursing, dissipating, encumbering, liquidating, loaning, pledging, selling, spending, transferring, or otherwise alienating any real estate asset that is owned or controlled by, or held for the benefit of, Defendant Boreyko, directly or indirectly” [9/18/15 Order, Dkt. #118], he seeks this Court’s confirmation that the transaction may proceed.

The proceeds from this sale will be utilized by Boreyko to make a capital infusion to fund ongoing company operations and expenses. While this transaction does not constitute a transfer of real property, out of an abundance of caution, counsel for Boreyko consulted with counsel for the FTC, who declined to stipulate to the transaction. Accordingly, Boreyko respectfully requests that this Court enter an order in the form attached as Exhibit “B,” approving the sale of Boreyko’s interest in AZ Pack.

DFRF: A Non-Motion, Batsh*t Crazy Letter

dfrf-enterprises-logoOn the Criminal case docket yesterday, we found this 45 page rambling nonsense wherein an “attorney-in-fact” is demanding all kinds of batshit crazy ‘Sovereign citizen” stuff, based upon the “Covenant of One Heaven”. It seems to be some “religious” cult-like group who define things in “space-time” coordinates and “register numbers” as their one true identifier.

The Court allowed it to be Filed, which in the original ASD/AdCashGenerator case, and related cases, Judge Collyer did not allow some of these ridiculous filings to go onto the docket, especially the “Motions to Intervene” filed by over 100 non-party individuals to the case. ASD was also rife with “sovereign citizens”.

I am including a link to document 42 so you can read this total fantasy stuff. Below is the first page, complete with a “seal”.

There is a more in-depth story on BehindMLM.


Case Updates, Nov 15, 2015

Achieve Community

  • Kristine Johnson – 15-cr-158 (WDNC) – The majority of docket entries are sealed by the Court. In June 2015, Johnson entered into a Plea Agreement (also sealed), sentencing was set for November 19. Forfeiture of moneys (over $7,301,255 ) and property ordered on November 10th.
  • Troy Barnes – 15-cr-254 (WDNC) – Case filed October 22nd, 4 Felony Counts; Trial was originally set for 30 days following arraignment; Motion to Continue was granted, Trial set for January 19, 2016.
  • SEC v Johnson, et al – 15-cv-299 (Colorado) – Trial set for December 5, 2016, at 8:30 a.m. United States Courthouse Annex, 901 19th Street, Denver, Colorado 80294

DFRF Enterprises, Inc.

  • SEC v DFRF Enterprises, Inc – 15-cv-12857 (Massachusetts) – On October 10, 2015, the SEC filed a ‘Motion to Intervene and Stay Discovery’ pending the resolution of a parallel criminal investigation.  The case was Ordered as Stayed on October 23, 2015.
  • USA v Filho – 15-cr-10214  (Massachusetts) – Case was filed August 5, 2015. Initial appearance was on September 3, 2015. Filho was remanded into custody. At the initial status conference on October 8, 2015, the defendant, represented by counsel, elected to voluntarily consent to detention without prejudice.  (the defendant was committed to the custody of the Attorney General for confinement in a corrections facility separate, to the extent practicable, from persons awaiting or serving sentences or being held in custody pending appeal)

eADGear / GoFunPlaces

  • USA v Wang, et al – 14-cr-488 (NDCal) – Both Wang and Yuen pleaded Guilty, judgement was ordered on October 27th; both men were sentenced to 46 months, and 3 years of supervised release.

Profitable Sunrise / Inter Reef, Ltd

  • SEC v Inter Reef, Ltd. – 13-cv-1104 (Northern Georgia) – This case has been static since July 2015. The last Order issued was for the repatriation of funds from a European Bank


  • USA v. Wanzeler et al – 14-cr-40028 (Massachusetts) – Due to the complexities of this case, things are progressing slowly. So far, 6 status conferences have been held, with another one prior to the scheduled trial date set for April 4, 2016. Carlos Wanzeler is still outside of the USA.
  • SEC v TelexFree, Inc., et al – 14-cv-11858 (Mass.) On October 8th, an Order was issued Granting the USDOJ’s Motion to Intervene and Stay Discovery pending the resolution of a parallel criminal proceeding. Fourth Status report was issued on October 15th.


  • SEC v. Steve Chen et al – 15-cv-7425 – (Central Cal) Preliminary Injunctions, Asset Freezes, Receiver Appointed, Restraining Orders and Required Accounting are issued on October 8th.

Vemma Nutrition Company

  • FTC v. Vemma Nutrition Company et al – 15-cv-1578 (Arizona) On October 28th, an Order was issued Denying defendant’s Motion to Approve Revised Compensation Plan. The FTC is also opposing Vemma from using “Affirmative Defenses”.

Zeek Rewards

  • SEC v Rex ventures, et al – 12-cv-519 (WDNC) – Currently, the receiver, Kenneth Bell is still marshaling funds he has collected from a portion of “net winners”. The claw backs continue. Checks have been issued twice to approved claimants.
  • USA v Olivares, et al – 13-cr-335 *closed* – (WDNC) Dawn Wright-Olivares and Daniel Olivares pleaded guilty. Final judgements entered on February 28, 2014.
  • USA v Burks, et al – 14-cr-208 (WDNC) – After 3 Motions to Continue, a Court for a peremptory trial setting was requested for November 2015. A fourth Continuance was granted, trial is now set for the May 2016 term.
  • Bell v Burks, et al – 14-cv-89 (WDNC)  Default judgement entered against Defendant Darryle Douglas for $2,271,239.20
  • Bell v Disner, et al – 14-cv-0091 (WDNC) –
    • Default judgment entered for Defendants Trudy Gilmond and Trudy Gilmond LLC in the amount of $2,129,522.27.
    • Default Judgment entered against Defendant Sorrells in the amount of $1,197,241.12.
    • Order approving Class Counsel for Net Winners,  Kevin Edmunson .
  • Bell v Nehra, et al – 15-cv-437 (WDNC) – Malpractice lawsuit, Nehra was Zeek’s “Compliance Officer”, also a “prominent MLM attorney”.


USA v Sanderley Rodrigues de Vasconcelos (TelexFree and iFreeX)

  • 15-cr-10227 – (Mass.) – Rodrigues is charged for Visa Fraud, falsifying documents in order to enter the USA. His first lawyer quit for non-payment. Rodrigues has a second attorney now, but for how long?



eAdGear: Operators Plead Guilty to Criminal Charges

gofun-rewards-logoBehindMLM has a story up about the two operators of eAdgear/GoFunRewards/GoFunPlaces pleading guilty to 2 counts each and being sentenced to 46 months in prison. Here’s a link to that article.

I have added the relative documents to the Files website, under Archived Files.



Achieve: Forfeiture Ordered For Kristine Johnson

achieve-community-logo“BASED UPON the Defendant’s plea of guilty, the Factual Basis, and the record, and finding that there is a nexus between the property listed below and the offense(s) to which the Defendant has pled guilty and that the Defendant (or any combination of Defendants in this case) has or had a possessory interest or other legal interest in the property, IT IS HEREBY ORDERED THAT the following property is forfeited to the United States:”

Approximately $1,770,463.93 in funds currently subject to restraint, in the
name of Work with Troy Barnes, Inc.

Approximately $750,000 in funds currently subject to restraint pursuant to SEC v.

Approximately $30,502.31 in funds currently subject to restraint pursuant to SEC r.

Approximately $13,790.86 in funds held in DST Systems

Approximately $13,500 in funds held in the name or by or for the benefit of Kristi

Approximately 532,618,06 in funds held by 1st Bank

Approximately $23,000 derived from the sale by Defendant of a 2015 Ford Escape
which Defendant had purchased with funds derived from the offense

A forfeiture money judgment in the amount of S4,700,000, such amount constituting
the proceeds of offenses

The United States Secret Service (‘USSS’), Treasury Executive Office of Asset
Forfeiture (‘TEOAF’), and/or the agency contractor is authorized to take possession and
maintain custody of the above specific asset(s), pending release of the specific assets from
restraint in SEC v. Johnson.

Achieve: Troy Barnes Trial Rescheduled

achieve-community-logoInitially, Barnes’ trial was set a mere 30 days after arraignment, and his appointed Federal Defender filed a Motion to Continue, so they have sufficient time to prepare a defense. Good luck with that.



IT IS, THEREFORE, ORDERED that defendant’s Motion to Continue (#8) is GRANTED, and the court finds the delay caused by such continuance shall be excluded in accordance with 18 U.S.C. § 3161(c)(2) & (h)(7)(B)(iv), as trial is scheduled less than 30 days from arraignment and appearance of counsel, and failure to grant such a continuance would deny counsel for the defendant the reasonable time necessary for effective preparation, taking into account the exercise of due diligence. Further, the ends of justice served by granting such continuance outweigh the best interests of the public and the defendant in a speedy trial. This matter is continued to the January 2016 term, and the time is excluded.

Signed: November 10, 2015

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