Day: May 2, 2014

  • TelexFree Live Bankruptcy-Court Coverage By Jordan Maglich Of Ponzi Tracker

    Jordan Maglich of PonziTracker is providing live coverage of today’s key TelexFree session in U.S. Bankruptcy Court in Nevada:

    12:44 p.m. Hearing beginning:

    Click here.

    1:07 p.m. PPBlog note: Based on Jordan’s reporting, it looks as though the U.S. Attorney’s office has filed civil and criminal forfeiture actions. This is similar to what happened in the AdSurfDaily MLM HYIP case in 2008.

    1:18 p.m. PPBlog note: One way to view the forfeiture actions is that the United States perceives an attack on the country’s banking infrastructure, opening the door for banks and payment processors effectively to become warehouses and distribution centers for fraud proceeds. For the sake of discussion, let’s say TelexFree has 700,000 members. This could mean there are 700,000 conduits to offload proceeds accumulated during a Ponzi scheme. The FBI has been warning about this type of thing for YEARS.

    4:30 p.m. PPBlog note: Testimony resumes after break for lunch. Visit PonziTracker.

  • DEVELOPING STORY: Reports Of TelexFree-Related Arrests In Dominican Republic

    (2ND UPDATE 11:39 A.M. EDT U.S.A.) In the hours leading up to a key appearance by TelexFree in Bankruptcy Court in Nevada today, there are reports in Dominican media that a TelexFree-related police raid occurred in San Pedro de Macoris and that arrests were made.

    TelexFree is accused in the United States of operating a combined Ponzi- and pyramid scheme that gathered more than $1.2 billion.

    Also see this report.