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Trustee Wants TelexFree’s Merrill To Appear At Meeting Next Week, Setting Stage For Potential 5th Amendment Showdown In Front Of Large Crowd

Trustee Wants TelexFree's Merrill To Appear At Meeting Next Week, Setting Stage For Potential 5th Amendment Showdown In Front Of Large Crowd

BULLETIN: TelexFree Trustee Stephen B. Darr today asked Judge Melvin S. Hoffman for an order that would compel TelexFree executive James Merrill to appear at a meeting of creditors at 11 a.m. on Feb. 10 at Mechanics Hall in Worcester, Mass. Darr also wants Hoffman to designate Merrill as TelexFree’s corporate representative, setting the stage for him […]

Purported JAG Lawyer Linked To SVM Global Initiative Pleads Guilty To Unlicensed Practice Of Law And Offering A False Instrument For Filing

Purported JAG Lawyer Linked To SVM Global Initiative Pleads Guilty To Unlicensed Practice Of Law And Offering A False Instrument For Filing

UPDATED 6:29 P.M. ET U.S.A. Kenneth Goldstein, who became a curious sidebar in the bizarre story of the SVM Global Initiative “program” led by Sheila V. Tabarsi, has pleaded guilty to unlicensed practice of law and offering a false instrument for filing. The latter charge is a felony, according to the office of Bronx County District […]

BULLETIN: Zeek Receiver May Push For Contempt Against Payza

BULLETIN: Zeek Receiver May Push For Contempt Against Payza

BULLETIN: New court filings in the Zeek Rewards’ Ponzi- and pyramid-scheme case brought by the SEC in 2012 say Zeek receiver Kenneth D. Bell may ask a federal judge for a finding of contempt against Payza, a payment processor. The news comes as federal prosecutors continue a criminal investigation involving Payza and Obopay, another payment processor. Prosecutors […]

EAdGear Case: Judge Orders More Than $26 Million In Disgorgement And Penalties

EAdGear Case: Judge Orders More Than $26 Million In Disgorgement And Penalties

Another pyramid scheme has proven costly for its operators. Here, according to the SEC, is the rundown from the EAdGear case brought in 2014. eAdGear Holdings Limited and eAdGear Inc. have been ordered to disgorge $21 million in ill-gotten gains, pay prejudgment interest of $640,000 and pay a civil penalty in the amount of $1,000,000. […]

BULLETIN: MyAdvertisingPays (MAPS) Again Referenced In TelexFree Litigation; Lawyer Calls It A Ponzi Scheme While Calling Simon Stepsys A ‘Ponzi Mogul’

BULLETIN: MyAdvertisingPays (MAPS) Again Referenced In TelexFree Litigation; Lawyer Calls It A Ponzi Scheme While Calling Simon Stepsys A 'Ponzi Mogul'

BULLETIN: (6th update 7:23 p.m. ET U.S.A.) Class-action lawyers pursuing claims against TelexFree promoters have called the My Advertising Pays (MAPS) “program” a Ponzi scheme and described MAPS promoter Simon Stepsys as a “Ponzi mogul.” The case itself is not against MAPs. Even so, the lawyers now have made repeated references to MAPs and are lambasting the serial […]

UPDATE: Sann Rodrigues Wants To Avoid ‘Con Air’ Flight

UPDATE: Sann Rodrigues Wants To Avoid 'Con Air' Flight

Through defense counsel, TelexFree figure Sann Rodrigues said in court filings today that he wanted to avoid a flight on “Con Air” from Florida to Massachusetts to face a contempt proceeding in federal court there. “Con Air” is a nickname for the Justice Prisoner & Alien Transportation System (JPATS) operated by the U.S. Marshals Service. It’s […]

‘Phone Card’ Ponzi Schemer Caught With Pipe Bombs, IEDs And Thousands Of Rounds Of Ammunition Sentenced To Prison

'Phone Card' Ponzi Schemer Caught With Pipe Bombs, IEDs And Thousands Of Rounds Of Ammunition Sentenced To Prison

Istvan Merchenthaler, the “PhoneCard USA” Ponzi schemer who fabricated ties to Walmart and later was caught with pipe bombs, improvised explosive devices, a machine pistol and 16 other firearms spread across three states, has been sentenced to 140 months in federal prison. U.S. District Judge Robert F. Kelly of the Eastern District of Pennsylvania also ordered Merchenthaler to […]

Is Profitable Sunrise Pyramid Case At Risk? SEC Declines Comment

Is Profitable Sunrise Pyramid Case At Risk? SEC Declines Comment

The SEC this afternoon declined comment on an order by a federal judge in Atlanta that could lead to the dismissal of the agency’s 2013 case against Profitable Sunrise, an alleged international pyramid scheme and offering fraud targeted at U.S. residents by one or more murky figures. Such a dismissal almost certainly would embolden overseas HYIP scammers […]

Full Statement Of SEC On Jailing Of Sann Rodrigues

Full Statement Of SEC On Jailing Of Sann Rodrigues

EDITOR’S NOTE: As the PP Blog reported yesterday, TelexFree figure Sann Rodrigues has been jailed. The SEC today released a litigation statement on the matter and related developments. It is reproduced below in its entirety.  **__________________________** Florida Resident Ordered to Jail Based On Violating Court Orders Obtained by the SEC The Securities and Exchange Commission […]

BULLETIN: Sann Rodrigues, TelexFree Figure, Ordered Jailed

BULLETIN: Sann Rodrigues, TelexFree Figure, Ordered Jailed

BULLETIN:  (2nd Update 10:46 P.M. ET U.S.A.) TelexFree figure Sann Rodrigues has been ordered jailed. The order, dated Jan. 15, was issued by U.S. District Judge Nathaniel M. Gorton of the District of Massachusetts. Gorton found Rodrigues in civil contempt last month for violating an asset freeze. Rodrigues did not purge the contempt by Jan. 15, so Gorton ordered the […]

TelexFree Trustee’s Proposed Class Actions May Affect Nearly 100,000 Alleged ‘Winners’ Globally

TelexFree Trustee's Proposed Class Actions May Affect Nearly 100,000 Alleged 'Winners' Globally

It’s another MLM legal and PR catastrophe. Let’s begin with the numbers, which are staggering: In two separate actions on Jan. 15, TelexFree bankruptcy Trustee Stephen B. Darr sued 56 named alleged “winners” in the MLM Ponzi- and pyramid scheme believed to have generated about $3 billion in corrupt, cross-border economic activity. These 56 promoters […]