TelexFree Members In Massachusetts Get Payout From Bank Fund

About 14,000 TelexFree members in Massachusetts have received a payout from a $3.5 million fund set up last year as a result of a settlement between the state Securities Division and Fidelity Co-Operative Bank, the office of Commonwealth Secretary William Galvin said today.

“While this money does not make the TelexFREE victims whole, the distribution does provide the first real monetary relief received by Massachusetts victims of this international pyramid scheme,” Galvin said. “I am very pleased that my office was able to get some money back for these victims.”

The first distribution consisted of $2.9 million from the fund. Each recipient of the first distribution will receive $205.52, Galvin’s office said.

From the news release dated today (italics added):

Under the terms of the consent order, the bank established a Massachusetts Victim Relief Fund and retained Grant Thornton LLP as independent claims administrator. The amount of the fund was set at $3.5 million.

This first group of claimants was assembled by Grant Thornton based on information provided to the administrator by the Securities Division. These Massachusetts victims were derived from records subpoenaed by the Division from TelexFREE as well as victims who contacted the Division.

A second group eligible for distribution will be those claimants who submitted claims to the Division but for whom additional information is needed to validate their claim. A third group are those claimants who file a valid claim to the independent claims administrator after July 3, the date the distribution plan was submitted.

Visit this page set up by Grant Thornton for more info.

About the Author

5 Responses to “TelexFree Members In Massachusetts Get Payout From Bank Fund”

  1. Poster LUTAYA SHAFIQ asks if TelexFree affiliates in Uganda will be able to file claims.

    I believe the answer is yes, but the trustee is still working on the mechanism.

    TelexFree participants should bookmark this site:

    http://www.kccllc.net/telexfree/document/list/3846

    Patrick

      (Quote)

  2. When will Ugandans be considered for Reimbursement of their money lost in telexfree???
    Imelda

      (Quote)

  3. Why is it that the case has not even taken-off? Is the re-imbursement by massachuest affecting us also since our participation was reaching the head-quatres of telexfree? How much shall we get if telexfree looses the case i.e shall we get only what we invested or including the profits we had made which were not payed by that time when the case started?

    Imelda Nalweyiso: When will Ugandans be considered for Reimbursement of their money lost in telexfree???Imelda

      (Quote)

  4. Hello, when shall we get our Money back from Telexfree,
    Am from Kampala , Uganda

      (Quote)

  5. LUTAAYA SHAFIQ:
    Hello, when shall we get our Money back from Telexfree,
    Am from Kampala , Uganda

    There is no way to tell right now. Sorry, Lutaaya.

    Patrick

      (Quote)

Leave a Reply