TelexFree: Criminal Case Status Report by USA
On Monday, the USA filed their “Interim Status Report” and a “Joint Motion to Adjourn Upcoming Status Conference”. The parties want to adjourn the status conference set for today (Feb 12) in light of the report and the unavailability of counsel.
The Report begins by saying the government has produced around 100 GB of additional information from a database seized back in April 2014 and another 75 GB from a Trustee overseeing TelexFree’s affairs (I am guessing the Bankruptcy Trustee).
Certain materials remain to be produced, either because (a) they are still being processed for electronic production, or (b) the government anticipates receiving the materials from outside sources. As to the former, the government has experienced some delays in processing and producing materials because of technical errors committed by outside vendors and the diversion of resources (paralegals and litigation technical support staff) to the ongoing Marathon bombing litigation.
At this stage, the following discovery remains to be produced:
• Approximately 45 GB of material recently received from Google (YouTube) in response to a search warrant.
• Data contained in two Hotmail email accounts and one Apple email account, also received in response to a search warrant. Production of this material has been delayed by errors in the data as produced by the email providers.
• Data the government anticipates receiving in response to a search warrant submitted to the Court this week.
• In March 2015, the government will receive a large amount of material, both hard copy and electronic, from the Brazilian government. Law enforcement authorities in that country have been independently investigating TelexFree for fraud and securities offenses. TelexFree was partly based in Brazil and had hundreds of thousands of Brazilian investors. Moreover, the third owner of TelexFree (the other two being defendants Merrill and Wanzeler), lives in that country. To date, the Brazilian government has executed about nine search warrants and seized approximately $450,000,000.
• Various recordings made by undercover HSI agents at TelexFree conference and in conversations with a TelexFree promoter.
The US government is suggesting an interim status conference in approximately 60 days, or some other date that reflects their anticipated acquisition of materials from Brazil in March 2015.