Office Of U.S. Trustee Says It Will Challenge Fee Applications In TelexFree Bankruptcy Case

newtelexfreelogoUPDATED 12:32 P.M. EDT U.S.A. A component of the U.S. Department of Justice has informed U.S. Bankruptcy Judge Melvin S. Hoffman that it will object to fee applications filed by two firms assisting Stephen B. Darr, the court-appointed trustee in the TelexFree bankruptcy case in Massachusetts.

In court filings yesterday, the office of U.S. Trustee William K. Harrington did not say precisely why it intended to challenge the billings. The two firms assisting Darr are Mesirow Financial Consulting LLC and Murphy & King, Professional Corporation, a law firm.

Harrington’s office said it will file a formal objection tomorrow with the assent of both Mesirow and M&K. Hoffman approved the request of Harrington’s office to file on June 5, instead of the original deadline of June 3. A hearing is scheduled June 10 to consider the applications and objections to them.

Mesirow is seeking $1,629,430, plus $20,942.56 in expenses incurred from June 5, 2014 through Feb. 28, 2015. M&K is seeking $1,307,858.50, plus $36,116.25 in expenses from June 6, 2014 through March 31, 2015. Both firms have said in court filings that they have assisted Darr in the recovery of more than $17 million so far.

Read the motion by Harrington’s office to object to the fee applications.

Read other filings in the TelexFree bankruptcy case. (The fee applications are Court Docket Nos. 0599 and 0598, both filed May 5, 2015.)

Visit the website of the U.S. Trustee.

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3 Responses to “Office Of U.S. Trustee Says It Will Challenge Fee Applications In TelexFree Bankruptcy Case”

  1. Quick note: At the moment, it looks as though the U.S. Trustee either didn’t file fee objections or whatever concern existed was worked out prior to today’s hearing.

    The judge has approved fee applications of Mesirow and M&K. See docs 0611 and 0610 here:


  2. From (Telegram & Gazette) today:



    Months of digging through electronic data left behind by the former Marlboro company has revealed that about 902,000 unique email accounts were registered with TelexFree, and participants linked to about 831,000 of those accounts lost money, Mr. Darr said Wednesday during a hearing in U.S. Bankruptcy Court. The average loss was about $1,928.



  3. Jordan Maglich of has a story on an update court-appointed trustee Stephen B. Darr provided the bankruptcy court today: