Category: Uncategorized
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TelexFree’s Merrill Concerned About Internet ‘Spectacle’
EDITOR’S NOTE: This is a follow-up to our Feb. 4 article that reported TelexFree figure James Merrill potentially could be forced to take the Fifth Amendment in front of a large audience at a music hall in Worcester, Mass., on Feb. 10. **____________________________** Forcing him to take the Fifth Amendment tomorrow at Mechanics Hall in…
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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
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…
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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…
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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.…
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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…
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‘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…
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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…
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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…
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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…