Archives on September, 2015

Achieve Community: Johnson To Be Sentenced, Case Documents Still Sealed

Posted by ASDUpdates on September 29, 2015No Comments

achieve-community-logoIt’s hard to tell what is going on within the criminal trial of Kristine Johnson since almost everything filed by each party is under seal. This was done to mostly to prevent information leaking to Troy A. Barnes.

Sentencing for Johnson is scheduled on or after October 11, 2015. Perhaps some documents will be unsealed so we can see what actually happened.

TelexFree: Affidavit From Bank Manager, Rodrigues Speaks English!!

Posted by ASDUpdates on September 29, 2015No Comments

newtelexfreelogoNot a total surprise, we have yet another party contradicting the assertion from Sanderley Rodrigues that he does not speak English. Now, we have an affidavit in support filed by Jason Carpenter, the Bank Manager of the BMO Harris Bank in Orlando, Florida.

In this affidavit Carpenter repeats the SEC’s claims that Rodrigues speaks and reads English sufficiently well to open Commercial bank accounts at the bank, beginning in August of 2013. All of the 8 commercial accounts opened by Rodrigues were closed on May 6, 2015.

Carpenter states that over an approximately 10 month period, he spoke in person with Rodrigues at least every two weeks and the conversations were all in English. These conversations covered topics including transferring money by wire, moving money between internal accounts, and filling out and signing forms.

Moreover, all of these forms that were filled out and signed by Rodrigues were in English and he had no problems negotiating them.

So much for the “No English” arguments, eh?

 

Zeek Rewards: Judge Orders Darryle Douglas to Return Receivership Property

Posted by ASDUpdates on September 28, 2015One Comment

ZeekThe Order below originates from a posting on Facebook. I have no idea why people post things on the internet without realizing that one day, it may come back to haunt you, and never goes away even if you delete it. Sometimes, braggadocio doesn’t work out so well. And, it’s a bit silly to think the Feds are not watching the serial promoters. Here’s what the receiver had to say:

“It has come to the attention of the Receiver that Mr. Douglas has begun promoting a new investment scheme known as “Auction Attics” and intends to use a copy the ZeekRewards affiliate database to solicit investors into this new scheme.”

In addition, the Facebook page contains a long statement from Mr. Douglas which reports he will use his “business database” which contains “over 2 million plus contacts,” of which “[o]ver 90% . . . have already bought bids before!”

 

Judge Mullen agreed with the Receiver and issued the Order:

THIS MATTER is before the Court on the Receiver’s Motion for Order Requiring Return of Receivership Property, Deposition, and Production of Records. The Court has considered the Receiver’s Motion and finds in its equitable discretion that the measures requested are appropriate.
It is, therefore, ORDERED, that Darryle Douglas shall:

1. return the ZeekRewards affiliate database along with all copies of such database to the Receiver  and cease using it;
2. submit to a deposition by the Receiver at a mutually convenient time and location no later than September 24, 2015; and
3. produce to the Receiver all financial records from November 1, 2011 to the present for his personal and business-related accounts prior to such deposition.

TelexFree: Trial Date Set For James Merrill

Posted by ASDUpdates on September 27, 2015No Comments

telexfree-logoAlmost as an aside on the docket for the TelexFree criminal case, there was a brief mention that a Jury trial date has been set for April 4, 2016, at 9 AM, in Courtroom 2, Worcester. Mass.

His co-defendant, Carlos Wanzeler, fled to Brazil like a frightened school girl.

carlos-wanzeler-and-james-merrill-telexfree-management-criminals

Pictured here are Wanzeler (l) and Merrill (r), the two alleged Ponzi/Pyramid operators of the estimated 1.8 Billion dollar scam known as TelexFree.

TelexFree: Motion Filed to Amend Complaint and Approve “Net Winners” Class

Posted by ASDUpdates on September 26, 2015No Comments

on September 23rd, a Motion was filed to Amend the Second Amended Complain, and if approve it would become the Third Amended Complaint in a Multiple Federal District case, 14-md-2566. Attorney Robert J. Bonsignore, Esq. (NH Bar No 21241) filed the Motion for Leave to Amend, and add an “unjust enrichment cause of action”, and a putative Defendant Class.

“Upon information and belief, in excess of 20,000 persons were “net winners.”

“Since these Direct Payment Recipients profited purely through their participation in an unlawful Scheme, and since they provided nothing of real and lawful value to the Scheme’s victims in exchange for the Direct Victim Payments they received, their gains constitute unjust enrichment.”

“The proposed amendment is brought in good faith, without dilatory motive, and will not result in any undue delay of these proceedings. In fact, Plaintiffs Executive Committee strongly advances the position that the sooner the cause against the Net Winners is advanced, the better the interests of the Putative Class of Net Losers will be served. In sum, Plaintiffs’ proposed amendment, which includes the addition of a class of Defendant Net Winners to the unjust enrichment claim, are important to Plaintiffs’ recovery in this matter, but will otherwise not affect existing claims or the schedule of this Court. The addition of the putative class will serve to increase the efficiency of this litigation and reduce the burden of this court and the parties while preserving the rights of all parties involved. The Plaintiffs’ Motion should therefore be granted.”

 

TelexFree: SEC Replies to Sann Rodrigues, Calls “Bullshit!!”

Posted by ASDUpdates on September 26, 20152 Comments

telexfree-logoI had a lot of enjoyment from reading the SEC’s reply to the total and complete nonsense put forth by Rodrigues’ former and current “legal mouthpieces”.  Namely, he “no speaky the English”. The SEC is not buying that asinine and specious reasoning as to why Rodrigues failed to comply with the Court’s Asset Freeze Order due to his inherent lack of knowledge and/or understanding of the English language, both written and spoken.

Rodrigues raised the “No English” argument by his turnstile-like attorneys (they leave because he does not pay them) on September 18th and then again on September 21st.  He stated that he did not understand the Freeze Order because he can barely speak English. Secondly, he argues that he was not represented by Counsel until June 13, 2014 and needed the attorney to explain to him the asset freeze order as entered on April 16, 2014.

The SEC further states, “With all respect, those arguments are nonsense.”

In 2 separate foot notes on this reply, he SEC puts forth these arguments regarding the “nonsense”:

His attorneys make this argument using slightly different formulations. The original attorney asserts that Rodrigues “does not speak English” and has “extremely limited knowledge of the English language.” The new attorney asserts that Rodrigues “is almost completely unable to read English and has between no proficiency and an elementary proficiency in speaking in English.”

A copy of the video is has burned to a CD that has been delivered to the Court. The link is www.youtube.com/watch?v=luIX7sKvOCw. In the 14-minute video Rodrigues switches between English, Spanish and Portuguese – speaking English at least 40 percent of the time. For the ease of the Court, he speaks English at approximately the following time stamps: 1) :01-:15; 2) :37-:39; 3) 1:30-2:05; 4) 3:51-4:31; 5) 6:46-8:24; 6) 8:42-9:07; 6) 9:16-9:22; 7) 9:30-10:00; 8) 10:22-10:42; 9) 11:29-12:02; 10) 12:55-13:30; and 11) 14:00-14:05.

As the Court can determine by watching the video, Rodrigues has no trouble speaking English.

And if this is not sufficiently damning regarding his ludicrous language claims, the SEC now mentions Rodrigues’ involvement in iFreex as further proof he speaks English:

 Rodrigues also made a short promotional video for a scheme called “iFreex” that was posted on the internet on October 16, 2014. Although the title of the second video is in Portuguese, Rodrigues speaks English in the video. A copy of the video has also been also burned to DVD that has been delivered to the Court. The link is www.youtube.com/watch?t=1&v=1joLWgsLO2E.

A little further down the Reply, the SEC repeats that Rodrigues understands English well, because this is not the first asset freeze order he has ever seen:

Rodrigues did not need a lawyer to explain the asset freeze orders in this case, because he had seen orders just like them before. Rodrigues was a defendant in a prior Commission enforcement action entitled SEC v. Universo Foneclub Corp. et al. (D.Mass. Case No. 1:06-cv-10940). In that case, Judge O’Toole entered a TRO and Asset Freeze and then a Preliminary Injunction and Asset Freeze. The operative language of the asset freeze orders in Universo Foneclub and in this case is virtually identical.

It strains credulity to suggest that Rodrigues did not understand that his assets had been frozen in this case, when his assets had been frozen in exactly the same manner in the prior case.

Yes, everything remotely related to Sanderley Rodrigues de Vasconcelos strains credulity.

TelexFree: Report After Seventh Status Conference

Posted by ASDUpdates on September 26, 2015One Comment

telexfree-logoIn the TelexFree criminal case (14-cr-40028, District of Massachusetts) a seventh status conference was held on September 24th. Pursuant to the Court’s Order, counsel for the parties attended in person.  Magistrate Judge David Hennessy filed the following in his report: (emphasis added)

In an effort to balance the interests of all stakeholders in that right, it is hereby ORDERED:
At a status conference on October 9, 2015, the parties shall propose a schedule for the completion of the production and review of discovery. The proposal shall expressly address the timing of any government expert disclosure relating to the financial information on which the United States bases its allegation, described generally herein, that TelexFree was a Ponzi scheme. The proposal shall also include an estimated deadline from Defendant for loading discovery into whatever electronic database Defendant is using.
The parties shall propose a deadline for discovery requests.

The United States has produced almost all discovery it expects to produce. An ongoing criminal investigation by authorities in Brazil which may generate some further discovery; the United States expects that this would be a modest amount.

Defendant has engaged outside services to load discovery in a searchable format into electronic files. Defendant expects this process to be done within one week. There are no pending discovery requests. Defendant is in the process of reviewing discovery. The parties anticipate the need for protective orders and will seek such orders as the need for them may arise.

Given the posture of discovery and Defendant’s need to review it as it is produced, it is too early to set reliable schedules for motion practice, expert witness disclosures, and a report on whether Defendant Merrill will raise defenses of alibi, public authority or insanity. The court will take up these matters at a future interim status conference.

It is apparent that a continuance that allows Defendant the opportunity to review this discovery serves the interests of justice. No time is chargeable against the statutory speedy trial clock. See Order of Excludable Delay entered on this date.

It is too early in the case to report on meaningful plea discussions.

An eighth Interim Status Conference will take place in this case on Friday, October 9, 2015 at 2:00 p.m., in Courtroom #1, Fifth Floor, Donohue Federal Building, 595 Main Street, Worcester, Massachusetts. Counsel may appear by telephone.

 

No Wonder Things Are So Messed Up……

Posted by ASDUpdates on September 23, 2015No Comments
Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
Tuesday, September 22, 2015

Owner of Polygraph.com Sentenced to Two Years in Prison for Training Customers to Lie

A former Oklahoma City law enforcement officer and the owner of Polygraph.com has been sentenced to two years in prison for training customers to lie and conceal crimes and other misconduct during polygraph examinations.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Commissioner Matthew Klein of U.S. Customs and Border Protection’s Office of Internal Affairs and Special Agent in Charge Scott L. Cruse of the FBI’s Oklahoma City Division made the announcement.

Douglas G. Williams, 69, of Norman, Oklahoma, pleaded guilty on May 13, 2015, to two counts of mail fraud and three counts of witness tampering.  Chief U.S. District Judge Vicki Miles-LaGrange of the Western District of Oklahoma imposed the sentence.

According to admissions made in connection with his plea, Williams owned and operated Polygraph.com, an Internet-based business through which he trained people how to conceal misconduct and other disqualifying information when submitting to polygraph examinations in connection with federal employment suitability assessments, background investigations, internal agency investigations and other proceedings.  In particular, Williams admitted that he trained an individual posing as a federal law enforcement officer to lie and conceal involvement in criminal activity from an internal agency investigation.  Williams also admitted to training a second individual, posing as an applicant seeking federal employment, to lie and conceal crimes in a pre-employment polygraph examination.  Williams also admitted to instructing the individuals to deny receiving his polygraph training.

The investigation was conducted by U.S. Customs and Border Protection’s Office of Internal Affairs and the FBI’s Oklahoma City Division.  The case was prosecuted by Trial Attorneys Heidi Boutros Gesch and Brian K. Kidd of the Criminal Division’s Public Integrity Section.

15-1156
Updated September 22, 2015

Yogi Berra, a legend has died

Posted by ASDUpdates on September 23, 2015No Comments

What a guy he was; 10 World Series Championships, a veteran of the Normandy invasion, Hall of Fame, coach, manager, and all around good guy.

He was also the originator of many famous and often quoted malapropisms.  He died on the 69th anniversary of his first appearance in major league baseball, September 22nd.

 

Here are a few of his “Yogi-isms”:

You better cut the pizza in four pieces because I’m not hungry enough to eat six.

Yogi Berra

If you don’t know where you are going, you might wind up someplace else.

Yogi Berra

I never said most of the things I said.

Yogi Berra

And my all time favorite:

You can observe a lot by watching.

Yogi Berra

For more quotes from a true legend, click here:  http://www.brainyquote.com/quotes/authors/y/yogi_berra.html

 

Sann Rodrigues: New Lawyer, Same Nonsense

Posted by ASDUpdates on September 22, 2015No Comments

After loosing representation in the SEC civil case against TelexFree for not paying his legal fees, it seems Rodrigues has found some money with which to retain new counsel. New docket entries indicate he now has two attorneys representing him, Andrea L.R. McGeehan and Robert Eckard.

The latter has filed a “non-motion” wherein he repeats most of the assertions made in the recently filed “Opposition” to the “MOTION for Contempt as to Defendant Sanderley Rodrigues de Vasconcelos filed by Sanderley Rodrigues De Vasconcelos.” Here is part of this “non-motion”:

Clipboard10

 

So, to hear the arguments, there is an Evidentiary Hearing scheduled for September 30th, at 3:30 PM in Courtroom 4 before Judge Nathaniel M. Gorton.