TelexFree Victims’ Collection of Seized Funds May Be Delayed

While state and federal prosecutors in Massachusetts have secured more than $150 million of the $1 billion raised by alleged investment fraud, known as “TelexFree”, victims’ claims for restitution have yet to be processed.  Authorities have said that these funds will not be available until the conclusion of the U.S. Department of Justice’s criminal case against the perpetrators of the fraud, Carlos Wanzeler and James Merrill.   The court handling TelexFree’s pending bankruptcy proceedings also has approved a method for disbursing funds.

Also, in September of this year, Massachusetts Secretary of State, William Galvin, negotiated a $3.5 million settlement with Fidelity Bank in Fitchburg for allegedly failing to properly investigate TelexFree’s financial activity.  Galvin’s office is in the process of establishing a procedure for filing claims.  He has advised victims that they are not entitled to recover the gains promised by TelexFree, only the money they actually invested in the alleged scam.

In addition to the funds obtained by the government, investors could potentially recover damages from any third parties, who may have aided TelexFree’s fraudulent activities.  No such claims have been filed to date.

Source: The Boston Globe


The above information is provided by Boston Accident Attorney, Keith L. Miller, a Boston, Massachusetts civil trial lawyer, specializing in the legal representation of individuals who believe that they have been injured as the result of the negligence of others and have been involved in all types of accidents causing personal injury. If you or a loved one has been injured in an accident where you believe someone else is at fault, contact Keith L. Miller to arrange a free consultation 24 hours a day, 7 days a week either by telephone at (617) 523-5803, or click here to send him an email. You will be contacted within 24 hours.