Wednesday, July 16, 2014

Breaking News: TelexFree trustee announced "no intention to reorganizing or restarting"

TelexFree trustee Stephen B. Darr, in filing today to the court, announced that he has "no intention to reorganizing or restarting" the TelexFree business, and have conceded that the entire business is a ponzi / pyramid scheme. Quoting from the court filing:
"based upon the information available to the Trustee, it appears that the early investors were paid not from sales of the VoIP services but rather from the money received from the later investors, thus evidencing a classic Ponzi/pyramid scheme..."
Jordan "Ponzitracker" Maglich, who is a lawyer that specialized in tracking ponzi schemes, opined that this wording indicates that the trustee will likely convert the bankruptcy from Chapter 11 reorganization to a Chapter 7 liquidation, in the near future. 

You can see the actual filing documents by clicking through to the Ponzitracker site:

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