Ponzitracker: TelexFree Wants To Eliminate Promoter Obligations

From Ponzitracker.com:

TelexFree Asks Bankruptcy Court To Eliminate Promoter Obligations

On the date it filed bankruptcy in a Nevada federal court, and just days before Massachusetts regulators and the Securities and Exchange Commission accused the company of being a massive pyramid and Ponzi scheme that had raised at least hundreds of millions of dollars from investors worldwide, TelexFree LLC filed a rather innocuous-sounding motion to “Authorize the Debtors to Reject Certain Executory Contracts Nunc Pro Tunc As Of The Petition Date.”  Cloaked in bankruptcy parlance, the title of the motion holds little meaning to the estimated hundreds of thousands of “promoters” that, until recently, were promised lucrative returns for placing daily advertisements and recruiting new investors.

However, a casual read of the Motion makes clear that the company accused by regulators of being an “egregious” pyramid scheme seeks now to use the Bankruptcy Court’s power to eliminate the obligation to pay accrued compensation likely totaling hundreds of millions of dollars to “promoters” – under the theory that elimination of these obligations will allow the company to “ultimately prove successful and profitable.”  Ironically, one of the chief concerns cited by TelexFree related to questions “raised as to whether the Original Comp Plan is compliant with law, which jeopardized the Debtors’ business.”

Continue reading “Ponzitracker: TelexFree Wants To Eliminate Promoter Obligations”

TelexFree Makes DHS “Top Story”

DHS LogoTop Stories

  • The Massachusetts Securities Division charged TelexFREE Inc., with running a Ponzi scheme targeting Brazilian-Americans that has raised over $90 million from Massachusetts residents and around $1 billion globally. – Forbes (See item 5)

5. April 15, Forbes – (International) Massachusetts regulators allege TelexFREE is $1 billion Ponzi scheme. The Massachusetts Securities Division charged TelexFREE Inc., based in Massachusetts and TelexFREE LLC based in Nevada with running a Ponzi scheme targeting Brazilian-Americans that has raised over $90 million from Massachusetts residents and around $1 billion globally. Source: http://www.forbes.com/sites/jordanmaglich/2014/04/15/massachusetts-regulators-allege-telexfree-is-1-billion-ponzi-scheme/

 

For the full press releases, click here.