Alleged ‘Key Figure’ In TelexFree Declares Bankruptcy

newtelexfreelogoUPDATED 1:05 P.M. EDT U.S.A. SEPT. 23 In April 2014, TelexFree declared corporate bankruptcy. Now, an alleged “key figure” in TelexFree being pursued by the court-appointed trustee has declared personal bankruptcy.

Jay Borromei of Opt 3 Solutions Inc. filed his petition Sept. 13 in U.S. Bankruptcy Court for the Central District of California, according to a new filing in the TelexFree bankruptcy case. Borromei, who resides in California, is requesting an automatic stay of TelexFree Trustee Stephen B. Darr’s April 2016 lawsuit against him and Opt. 3 in Massachusetts Bankruptcy Court for the return of more than $1.8 million.

Both Borromei’s bankruptcy filing and Darr’s adversary action against him demonstrate one of the often-ignored dangers of becoming involved in an MLM scheme that promises or suggests a return on investment: financial ruin and the emotional consequences of one court appearance after another in multiple jurisdictions.

Darr accused Borromei of aiding and abetting the TelexFree Ponzi- and pyramid scheme that affected hundreds and hundreds of thousands of people worldwide.

Specifically, Darr accused Borromei of helping shape TelexFree’s compensation plan and continuing to assist the company even after TelexFree’s Ympactus branch in Brazil was accused of operating a pyramid scheme in that country.

Whether this was the first personal bankruptcy filing by a defendant in one of Darr’s adversary actions was not immediately clear. The trustee effectively has sued tens of thousands of alleged TelexFree winners in the United States and other countries.

On July 13, Borromei notified the Massachusetts Bankruptcy Court that he and Opt3 “have been and continue to be in discussions with counsel to the Trustee regarding the claims in this action, and expect to continue those discussions over the next several weeks.”

No defense has been entered to Darr’s claims, and Borromei declared bankruptcy in California two months later.

Sept. 26 [Edit on Sept. 23: Dec. 31 is the new claims deadline] is the deadline for TelexFree victims to file claims in the Massachusetts bankruptcy case through TelexFreeClaims.com.



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