Source: 6/9/2014

Trustee Appointed for TelexFREE, Class Action Lawsuits Filed

Boston, MA -- Stephen B. Darr, Senior Managing Director of Mesirow Financial Consulting in Boston, has been appointed the Chapter 11 trustee for TelexFREE. Darr will take over management of TelexFREE through the company's bankruptcy.

Meanwhile, three class-action lawsuits seeking in excess of $10 billion have been filed against TelexFREE on behalf of plaintiffs in North Carolina, Massachusetts, and Nevada.

The Securities and Exchange Commission and the Massachusetts Secretary of State have both charged TelexFREE with securities fraud. One of the company's co-owners, James Merrill, is being held in federal custody, while the other, Carlos Wanzeler, has fled to Brazil. Merrill is petitioning the court to allow home detention at his Massachusetts home under conditions including surrender of his and his wife's passports, GPS monitoring, and payment of a $900,000 personal recognizance bond. Prosecutors have said Merrill is a flight risk. Merrill's attorney pointed out that despite being aware of the government's criminal investigation, Merrill did not take the opportunity to flee to avoid prosecution, unlike his co-defendant.

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