Remember folks, when you read news, even ones provided here, you should check the links I provided to make sure I was representing the new properly, and you should do the same for ALL the "news" you come across, unless you encounter news such as those from major newspapers, which has readers to account for and has a reputation of telling the truth, rather than what you want to hear. Stop reading crap meme and spreading them.
Stephen B. Darr selected as US trustee to oversee TelexFree bankruptcy
As directed by the judge Hoffman, US trustees has appointed Stephen B. Darr of Merisow Financial Consulting as trustee to takeover the TelexFree bankruptcy.
Here's the actual court order making the appointment: (Thanks to Attorney Tim Durken for the lead)
What exactly does a trustee do? Here's Cornell Law School's link to actual law on that:
You can find a short profile on Mr. Darr on the Merisow website:
Faith Sloan, part of TelexFree 8, claim to know nothing (i.e. blame Merrill, Wanzeler and Nehra)
According to "motion to dismiss" filed with the court, Faith Sloan, one of four promoters (along with the four executives charged by SEC in the civil fraud case, together informally known as the TelexFree 8) claims to know nothing, and claims she's as much a victim of TelexFree's officers as any one else.
Sloan seemed to be playing dumb, according to SEC filings. On 17-APR-2014, when SEC called up Sloan and informed her she's among the people being sued by the SEC, Sloan started indignantly claiming "why are you picking on me, there are bigger promoters than me". She then asked to see the complaint. SEC agent on the phone then informed her how to get a copy of the complaint from SEC website. When asked for an address so a copy can be sent to her directly, she refused, stating "you must know everything about me so you can figure it out." She then hung up on the SEC agent.
On 02-JUN-2014 Sloan filed a motion requesting more time to respond to the lawsuit, claiming she did not receive the SEC complaint until 27-MAY-2014, when her lawyer forwarded her a copy. Her excuse, even though TelexFree closure was all over the news since APRIL? AND the SEC agent had called her on 17-APR-2014? The process server served her mother Antoinette Sloan with the complaint, not Faith Sloan herself. Even though they live at the same address.
SEC does not like this at all, and basically accused Sloan of wasting the court's time playing word games (i.e. "legal sophistry")
Judge granted her a partial extension.
Sloan then followed up with a motion to dismiss, where she claimed to know nothing about the fraud, it's all Merrill, Wanzeler, Labriola, and Nehra, and SEC haven't proven that she's defrauding people if she didn't know it's fraud because she's defrauded too.
Experts in this field called this the "Sgt Shultz defense", aka "dummy defense", and it was rarely (if ever) successful.
On the other side of the world... in the meanwhile...
Lyoness not a "illegal pyramids sales system" in Norway Now
Norwegian Gaming Board, which oversees pyramid schemes, has apparently cleared Lyoness of suspicion of pyramid scheme after an initial investigation several months ago where it did announce that Lyoness was a suspect pyramid scheme.
What is worth noting is that Lyoness had, since the original suspicions back in December 2013, separated into two entities: Lyoness, and Lyconet. Lyoness will be consumer only, while the merchant side will deal with Lyconet. Before, both Merchant and consumer deal with Lyoness.
Norwegian Gaming Board has yet to publish its full decision or the reason it had made such determination. Indeed, the news was announced by Lyoness itself.