Source: 8/16/2015

First Group of Claimants Receive TelexFree Settlement Checks

August 14, 2015 -- Thousands of former TelexFree customers have received checks from a $3.5 million fund set up by Fidelity Co-operative Bank of Fitchburg, MA as part of a settlement with the Securities Division of Massachusetts last year. The bank was accused of inadequate oversight and failure to detect suspicious activity in TelexFree's accounts. More than 14,000 Massachusetts residents were sent checks for $205.52 each.

This first group of claimants to receive restitution from the $3.5 million fund was derived from records subpoenaed from TelexFree and individuals who contacted the Securities Division. A statement from the Secretary of State said that a second group eligible for distribution will be those individuals who submitted claims but for whom additional information is needed to validate their claim.

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