BULLETIN: U.S. TelexFree Probe May Expand Overseas

James Merrill.

James Merrill.

BULLETIN: Federal prosecutors in the United States have informed a federal judge that “evidence underlying this case is closely tied to certain foreign countries, especially Brazil” and that “it is likely that the parties will need to review evidence in foreign countries and arrange for foreign witnesses and/or law enforcement officers to travel to the United States to testify at trial.”

The assertion by U.S. prosecutors is part of a motion to designate TelexFree as a “complex case” that calls for an exception to the Speedy Trial Act, a law that requires an indicted defendant to be tried within 70 days. Former TelexFree executives or managers James Merrill and Carlos Wanzeler were indicted on July 23.

It was unclear whether Merrill, who remains in the United States, would challenge prosecutors on the issue. Wanzeler ducked out of the United States through Canada on April 15, and flew to Brazil on April 17, according to prosecution filings.

From a prosecution filing today (italics added):

Relief from the requirements of the Speedy Trial Act is needed to allow the parties enough time to produce and examine discovery and evidence in this case and to prepare for trial. In the event of trial, substantial lead time will be required to secure the attendance of foreign witnesses, including the permission of host countries and travel. The ends of justice served by relief from Speedy Trial Act requirements in this case outweigh the best interests of the public and the defendant in a speedy trial; failure to grant relief may deny the parties the time needed for effective trial preparation, taking into account the exercise of due diligence, and may result in a miscarriage of justice.

U.S. prosecutors asserted today that they had seized 400 terabytes of data “spanning 46 servers.”  Meanwhile, prosecutors said they’d “seized about 26 separate computers from TelexFree’s headquarters – all containing independent drives that are not networked to the servers described above – as well as about three other computers obtained via grand jury subpoena.”

At the same time, prosecutors said the U.S. government had “also issued approximately 185 grand jury subpoenas in the course of its investigation so far, nearly all for large productions of business records, including from multiple banks, brokerage houses, and payment processing services. The government is in the process of scanning the seized documents and, along with the subpoenaed materials, compiling a single database for production to the defense.”

NOTE: Our thanks to the ASD Updates Blog.

 

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5 Responses to “BULLETIN: U.S. TelexFree Probe May Expand Overseas”

  1. Test. Please ignore.

    Patrick

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  2. Quick note: A glitch of some sort appears to have created a condition in which some readers cannot see the story above. I put a note in a separate thread about this because it appears not to be affecting all readers:

    http://patrickpretty.com/2014/08/18/missouri-raised-grave-concerns-over-telexfree/comment-page-1/#comment-117141

    This could be a caching issue. Something similar happened last week. It affected operations for about three hours.

    Patrick

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  3. This document is available in ASD Updates Blog?

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  4. Patrick, Carlos Costa has just released a new video, commenting on bad translations of three paragraphs you wrote here in this text. Check it out at 4:30 and 5:15 here: https://www.youtube.com/watch?v=zllahv4i8Lg

    The texts seem to be automatically translated. Interestingly, Carlos Costa reads only part of what is on the screen. The other parts, he says on his own words.

    It seems Carlos Costa keeps an eye on your blog, hehehe.

    So, if you’re reading this, Costa, surrend once for all. There’s no way out. Call your friend Wanzeler and go with him to a police station, and surrender. :)

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  5. Here’s a link to Doc 105, “MOTION FOR COMPLEX CASE DESIGNATION AND EXCLUSION OF TIME”

    https://docs.google.com/a/asdupdates.com/viewer?a=v&pid=sites&srcid=YXNkdXBkYXRlcy5jb218ZmlsZXMtd2Vic2l0ZXxneDoxYzFlMGE2MDhhOTU1MTRl

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