BehindMLM: 2 More TelexFree Stories (sucks to be them)

These come from BehindMLM.com:


TelexFree Trustee goes on clawback rampage

telexfree-logoDating back to early March, the TelexFree Trustee has filed no less than thirteen clawback lawsuits against non-investors who profited from TelexFree.

Under counts of fraudulent transfer filed in adversary proceedings, the parties the TelexFree Trustree is suing are as follows: [Continue reading…]


More top US TelexFree investors named & shamed

telexfree-logoIn a court filing that flew under the radar until Patrick Pretty reported on it earlier today, TelexFree’s top US investors have been named and shamed.

Sorted by the amount of money they stole from victims in the $3 billion dollar Ponzi scheme, the one hundred and five TelexFree affiliates cited in the filing are as follows: [Continue reading…]


Thanks Oz for more good articles about this scam.

From BehindMLM: TelexFree Fined for “Crimes Against the Economy”

TelexFree fined $1.5 million for “crimes against the economy”

telexfree-logoIn another blow to TelexFree’s Brazilian based Ympactus, the company has been fined $1.5 million for “crimes against the economy”.

The fine stems from a National Bureau of Consumer Law (Senacon) investigation, which found Ympactus operated as a “Ponzi pyramid scheme”.

Senacon, a department of Brazil’s Ministry of Justice, claimed Ympactus operated

as a Ponzi pyramid scheme, breached the principle of goof faith and transparency, violated the confidence of consumer protection relations and conducted misleading and abusive promotion of the scheme.

The $1.5 million dollar fine was imposed on April 20th, with Ympactus given 30 days to pay up.

TelexFree’s lawyers in Brazil did not respond to Brazilian media requests for comment.

Late last year the Brazilian state of Acre fined TelexFree $782,512 after ruling it operated a Ponzi scheme. Last month Brazil’s IRS also slugged the scheme with a whopping $130 million dollar tax penalty.

 

Zeek Rewards: Government Opposes Burks’ Motion for Bill of Particulars

zeeklerThe government has filed an Opposition to Paul Burks’ request for a Bill of Particulars and for Brady Materials. The AUSA states in this Opposition:

On October 24, 2014, a federal Grand Jury indicted Defendant Burks on four charges related to his role as leader of ZeekRewards. Defendant is charged with, among other things, conspiracy to commit mail and wire fraud (18 U.S.C. §§ 1341, 1343 and 1349) and conspiracy to commit tax fraud (18 U.S.C.
§371). (Doc. 1). The Indictment sets out the fraud scheme in great deal over six single-spaced pages that include introductory language, a section on relevant entities and individuals, and
numerous pages devoted to the details of the scheme. Despite the detail set forth in the speaking indictment, the Defendant now asserts that he has insufficient notice of the allegations against him in order to prepare his defense.

In May 2015, this Court granted a continuance in this case until May 2016. Two months before the peremptory trial setting and approximately seventeen months after the Indictment, Defendant Paul Burks filed a Motion for a Bill of Particulars, seeking among other things the definition of Ponzi scheme1 and a detailed forecast of the Government’s trial evidence. Additionally, Defendant filed a Motion for Brady materials theoretically held by third parties. These motions are both baseless and untimely and should be denied.

The Assistant US Attorney points out that a motion for a bill of particulars is barred procedurally if not filed within 14 days of arraignment. Burks was arraigned in November of 2014.

Specifically Defendant alleges that he cannot determine: (1) who his alleged co-conspirators are; (2) what a Ponzi scheme is; (3) what conduct was in furtherance of the scheme; (4) what automated programs were used in the scheme; and (5) where Zeekler and Zeek Rewards maintained offices. (Doc. 40,
pgs 5-7).

I have uploaded this filing onto the Files website, USA v Burks

Zeek Rewards: Burks Criminal Trial Continued

THIS MATTER is before the court on the joint oral Motion to Continue. Having considered the joint Zeekmotion and reviewed the pleadings, the court enters the following Order.

ORDER

IT IS, THEREFORE, ORDERED that the joint oral Motion to Continue is GRANTED, this matter is continued from the peremptory setting in May 2016, to a peremptory setting of July 5, 2016, and the court finds the delay caused by such continuance shall be excluded as the ends of justice served by granting such continuance outweigh the best interests of the public and the defendant in a speedy trial. Specifically, defendant, his counsel, and the government have shown that the previous peremptory scheduling would result in a non-contiguous trial due to the intervening Fourth Circuit Judicial Conference, and that a resetting of the trial for a time without a substantial interruption would further the interests of all in a fair trial.

Zeek Rewards: Receiver Announcement for March 28th

ANNOUNCEMENT FROM THE RECEIVER – March 28, 2016

On March 16, 2016 the U.S. District Court approved a settlement between the receivership and NewBridge Bank in the amount of $10,000,000. The settlement arose out of claims the receivership had against NewBridge Bank for its continuing to provide banking services to Rex Venture Group after mid-April 2012, by which time the receivership alleged that the bank and its executives knew or should have known that Paul Burks and RVG were using their accounts to conduct an illegal Ponzi and pyramid scheme.

Details of the receivership’s potential claims and the settlement may be accessed and reviewed by clicking on the highlighted links below:

Motion to Approve Settlement and Settlement Agreement
Court’s Order

On behalf of the victims of RVG and Zeek Rewards the receivership team continues to pursue and collect assets that will be paid to those with recognized claims. We hope to bring to a conclusion in 2016 our class action against more than 9,000 net winners, which will be a significant milestone.

I have written many times encouraging tens of thousands of claimants with recognized claims who have not yet received a distribution check to log into the claims portal and electronically sign the Court required Release and OFAC Certification. At some point, I will be required to distribute the funds that have been reserved for these claimants to other Affiliates who have completed the process and, therefore, hold Allowed Claims. I don’t want any claimant with a recognized claim to lose out on receiving a distribution simply because they did not complete all of the steps required by the Court’s Orders.

Thank you for your support as we continue to work on your behalf.

Zeek Rewards: Jaymes Meyer, Preferred Merchant Solutions, Enters Into Plea Agreement

On March 10th, the Department of Justice files criminal charges against Jaymes Meyer, of Preferred Merchant Solutions. The criminal Counts charged in this case are 18USC 1503(a) INFLUENCE/INJURING OFFICER/JUROR/WITNESS (1). and 18USC 2 (accessory to a crime).

The Bill of Information charges that Meyers engaged in an elaborate obstruction of justice to conceal millions of dollars from the Government using a series of foreign and domestic banking and brokerage accounts.

“In or about July 2012, RVG and Meyer, through Preferred Merchants, executed a Declaration of Trust establishing the RVG Corporate Trust”. It goes on to say that “On or about August 1, 2012, approximately $20 million of RVG assets was deposited into the RVG Trust account. The next day, Meyer contacted Bay Area Escrow and directed approximately $2.6 million to be transferred to Preferred Merchants.”

But wait, it gets better….  after an Assistant Director of the SEC contacted Meyer (by phone) on August 16, 2012 of a securities fraud investigation and a Court order freezing RVG’s assets, within about 20 minutes of this call from the SEC, Meyer directed another transfer from the RVG Trust in the amount of $4.8 million.

The list goes on and on, the full document is available here 1-Bill of Information

Meyer entered a guilty plea on March 8 or 9, prior to the case being filed. This Order of Forfeiture adds to the assets garnered by the Zeek receiver.

Profitable Sunrise: Default Final Judgment Entered

ProSun

I checked the docket just now and saw this; it’s sort of what I thought would happen. Not sure what it means for the victims of “Roman Novak” or whoever that low life crook actually is.


 

 

DEFAULT FINAL JUDGMENT ENTERED against Defendant Inter Reef Ltd. dba Profitable Sunrise and Relief Defendants Melland Company S.R.O., Color Shock S.R.O., Solutions Company S.R.O., and Fortuna-K S.R.O., the Court hereby enters final judgment in favor of the Securities and Exchange Commission and against the Defendant and Relief Defendants.

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934 [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of any security.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant and Relief Defendants are liable, jointly and severally, for disgorgement of all sums raised in the enterprise described in the Commissions Complaint, including, but not limited to, all amounts transmitted from the United States to accounts outside the United States, including to accounts held in the name of the Relief Defendants wherever those accounts are located, together with prejudgment interest thereon. The Commission may move to amend this Final Judgment within 90 days to more precisely quantify the amount of disgorgement and prejudgment interest and defendant and relief defendants shall satisfy the disgorgement obligation within 14 days after entry this Final Judgment.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. (See judgment for further details) Signed by Judge Thomas W. Thrash, Jr. on 3/16/2016


 

 

Here is the Final Judgment Order for those who would like to see the details.

Zeek Rewards: Darryle Douglas In Custody

On December 10, 2015, Judge Mullen issued an arrest warrant for Darryle Douglas, for Contempt.  This darryl-douglas-sales-director-zeek-rewardswarrant was returned as executed on March 2, 2016. Douglas was arrested in Riverside, Ca.

Douglas was ordered to appear and show cause why he should not be found in Contempt for failure to comply with the Court’s September 15, 2105 order which required him to return to the Receiver the Zeek Rewards database in his possession, to produce certain financial records, and to submit to a deposition by the Receiver.

TelexFree: Judge Issues Stay in the Multi-District Case

It seems that a group of Plaintiffs have tried to circumvent one of the Judge’s Orders, so he responded with this:

ORDER STAYING ALL ACTION CASE

March 2, 2016
Hillman, D.J.

Background

This Court is presently overseeing the TelexFree Securities Litigation, Civ. Act. No. 14-2566-TSH, which was assigned to it by the Multidistrict Litigation pursuant to its order of October 21, 2014. On January 15, 2016, I denied the motion ot the plaintiffs’ in the TelexFree Securities Litigation (MDL No. 4:14-md-2566-TSH) to amend their Second Consolidate Amended Complaint to add a putative class of “Direct Victim Net Winner Recipients” to their unjust enrichment claim. On January 26, 2016, I denied the plaintiffs motion to reconsider. On February 24, 2016, Maria Murdoch, Angela Batista Jimenez, Elisangela Oliveira, and Diogo Deraugo (“Plaintiffs’) filed this action which asserts an unjust enrichment claim against what appears to named “Direct Victim Net Winner Recipients.”

Discussion

Plainiffs are reperesented by Bonsignore, PLLC, the law firm that, at present, has been appointed Interim Lead Class Counsel in the TelexFree Securities Litigation and therefore, are aware that that motion to amend the Second Consolitated Amended Complaint in that case to add a putative class of Direct Net Winners Recipients was denied. Because this action appears to be an attempt to obviate my prior order denying the motion to amend the Second Consolidated Amended Complaint in the TelexFree Securities Litigation, I am staying all further action in this case until further notice.

Conclusion

The Complaint filed in this action, 16-40018-TSH, is hereby stayed and Plaintiffs shall take no further action until the stay is lifted by the Court.
So Ordered.

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