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TelexFree Class Action Suit


The TelexFree bankruptcy case is filed and will be heard in The Commonwealth of Massachusetts, United States.

The Honorable Judge Hoffman of the United States Bankruptcy Court for the Commonwealth of Massachusetts has extended the deadline for creditors to file their proofs of claim against Telexfree and it’s affiliates. [Read more…]

TelexFree co-owner arrested in Worcester

The Boston Globe has reported that the co-owner of TelexFree Inc. has been arrested in Worcester, Massachusetts. Here’s the story.

Boston Globe By Priyanka Dayal McCluskey

James Merrill, co-owner of TelexFree Inc., the Marlborough company accused of bilking investors in an elaborate pyramid scheme, has been arrested, US Attorney Carmen Ortiz’s office confirmed today.

James Merrill

Authorities also have issued a warrant for the arrest of co-owner Carlos Wanzeler, who is now a fugitive, thought to have fled to Brazil amid a criminal grand jury investigation of the company.

Merrill was arrested by Homeland Security agents this afternoon on Route 9 in Worcester. Charges against him will be filed in US District Court in Worcester.

An attorney for Wanzeler said at a hearing Wednesday that he didn’t

know the whereabouts of his client, but it “wouldn’t terribly surprise anybody” if the TelexFree principal had traveled to Brazil recently. He said Wanzeler had dual citizenship in Brazil and the United States.

Regulators sued TelexFree and froze the company’s assets last month, alleging the business and its principals were operating an illegal pyramid scheme that may have raised more than $1 billion from people around the world. [Read more…]

TelexFree, Inc. Bankruptcy

If you invested money or worked for Telexfree, Inc. and its affiliates, you can protect your rights by submitting a Proof of Claim through Bostonian Legal Group by August 13, 2014.

The Telexfree bankruptcy cases were recently transferred to Judge Melvin Hoffman in the Federal Bankruptcy Court located in Worcester Massachusetts. On May 8, 2014, Judge Hoffman issued Orders for victims and will be convening a hearing on the matter on May 27, 2014. If you invested money or worked for Telexfree and its affiliates, you can protect your rights by submitting your TelexFree claim to the Bostonian Legal Group.

Bostonian Legal Group is a Massachusetts bankruptcy law firm. We represent victims throughout the world and the United States who have lost money in corporate bankruptcy cases. We offer TelexFree victims a free Claims Evaluation and  the opportunity to join the Class Action Suit against TelexFree. We will file the Bankruptcy Proof of Claim Form on your behalf, preserve your rights as a TelexFree victim, and represent your interests during the TelexFree bankruptcy process in an effort to return your investment.

The Deadline to file your Proof of Claim Form is August 13, 2014

 Background Information:

On April 13, 2014, TelexFree, Inc. filed for protection under Chapter 11 of the Bankruptcy Code. TelexFree is accused of running a multi-level pyramid and Ponzi scheme, receiving approximately $1,000,000,000 in allegedly fraudulent sales, and owing in excess of $4,000,000,000. If you participated in any of the company’s programs, including the sale of voice over Internet telephone service (“VOIP”), or the sale of advertising packages, you may have claims in the bankruptcy case.

We regularly represent clients in front of Judge Hoffman and are experienced with the Worcester Bankruptcy Court. We will protect your rights and meet the requirements under the Bankruptcy Code.

TelexFree bankruptcy case back to Mass.

Boston Globe By Beth Healy

A federal judge in Las Vegas has ruled that the TelexFree Inc. bankruptcy case will be moved to Massachusetts, after regulators argued that the Marlborough phone-service company had virtually no operations in Nevada.

US Bankruptcy Judge August B. Landis made a ruling from the bench Tuesday to move the case to Massachusetts and temporarily suspend proceedings, a court official confirmed.

TelexFree filed for Chapter 11 protection on a Sunday night last month, 2,700 miles away from its main office in Massachusetts, just days before state and federal securities regulators brought civil fraud charges against the company’s principals.

Federal agents raided TelexFree’s Marlborough office on April 15, two days after the bankruptcy filing, and regulators soon froze the company’s assets. Secretary of State William F. Galvin accused the company of luring $90 million from Massachusetts residents who signed up for TelexFree’s Internet phone service and opened investment accounts with the company on promises of large returns. [Read more…]

Selecting the best bankruptcy attorney for your needs

For those considering bankruptcy, one of the first things that needs to be understood is the difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy. While there are similarities, there are tremendous differences as well.

  • Chapter 7 defined – The simplest form of bankruptcy, Chapter 7 literally wipes away consumer debt through a liquidation process. Some assets such as a primary residence and automobile may be exempt depending on your individual case.
  • Chapter 13 defined – More commonly called wage-earners bankruptcy, this allows the debtor to restructure existing debt. Borrowers who do not qualify for Chapter 7 are often able to file Chapter 13.

Qualifying for Chapter 7

Debtors cannot simply decide to file Chapter 7, they must first pass a means test. The means test is based on a formula based on median income which the Census Bureau shows was $65,981 in Massachusetts between 2006 and 2011.  The median income is different for each debtor since factors like household size do have an impact on the rate. Borrowers who earn less than the median income for a family their size are generally eligible to file for Chapter 7. [Read more…]

Bankruptcy Attorneys Can Help with Chapter 7 or Chapter 13 Bankruptcy

If you are considering filing for bankruptcy and live in Massachusetts, you need to know the difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy. These are the two main types of personal bankruptcy but each have their own set of rules and stipulations that are paramount in choosing the right one for your own personal needs.

  • Chapter 7 Bankruptcy. This type of bankruptcy filing is known as straight bankruptcy. What it involves is a liquidation of your assets that are not considered exempt. Exempt property can be tools for work, automobiles and some household furnishings. You can file for Chapter 7 bankruptcy once every six years and some of your property may be sold or given to your creditors. You must also qualify for this type of bankruptcy since only those that cannot afford to pay on their debts are considered. If you can afford to pay some of your debtors then you have to choose the Chapter 13 status instead. Also keep in mind that some debts cannot be discharged. Some examples include back taxes and student loans.
  • Chapter 13 Bankruptcy. This type of bankruptcy is a little different. You receive a payment plan through the court as long as you have a steady income. You are allowed to keep your property that might otherwise be sold; this can include your home and automobiles. Once you have made the court approved payments, your debt is settled. This one is more of a debt consolidation as opposed to a Chapter 7 bankruptcy, which is a total liquidation of assets that are nonexempt.

Since both require the help of bankruptcy attorneys simply contact us in order to research the right information and choose the most experienced and appropriate lawyer in Massachusetts.

Proposed Amendments to the Massachusetts Local Bankruptcy Rules

The United States Bankruptcy Court, with the valuable assistance of the Attorney Advisory Committee chaired by Chief Judge Frank J. Bailey and Judge Melvin S. Hoffman, has drafted new and proposed amendments to the Massachusetts Local Bankruptcy Rules (PDF Version).


(a) A party filing a document amending a voluntary petition, list, schedule, statement of financial affairs, statement of intention or statement of current monthly income shall do so by notice as set forth in Fed. R. Bankr. P. 1009(a), except with respect to the following in an individual debtor’s case:
(1) amendment to add a creditor or to change a creditor’s address; or
(2) amendment to the schedule of exemptions after the deadline for objecting to the exemptions.
(b) If either exception set forth in subsection (a) applies, the debtor shall file a motion to amend seeking approval of the amendment.
(c) The following documents, to the extent applicable, shall be filed along with the documents required in subsections (a) and (b):
(1) the amended voluntary petition, list, schedule, statement of financial affairs, statement of intention, or statement of current monthly income, which shall clearly state in the caption that the document is “amended”;
(2) Official Form B6 -Declaration Concerning Debtor’s Schedules;
(3) an amended summary of schedules; and
(4) a certificate of service of notice to all parties in interest, including persons affected by the amendment.
(d) If the debtor is adding a creditor or is changing an existing creditor’s address on the mailing matrix, the motion to amend or notice shall include a separate list of the names and addresses of only the added creditors in compliance with MLBR Official Local Form 1.

[Read more…]

Selecting a Boston Bankruptcy Attorney

A Boston bankruptcy attorney can help you manage personal or professional debts you are unable to pay. Bankruptcy laws allow people and businesses to (1) get a “fresh start” by relieving most debts; and (2) repay the money owed to all creditors as fairly as possible.

When you file for bankruptcy protection, all other legal actions against you are put on hold. Creditors cannot sue you, garnish your wages, repossess your car or home entertainment system, or start or continue with a foreclosure action against your home. There are different types of bankruptcy filings and each has its own advantages. Since bankruptcy can significantly impact your future purchasing power and credit rating, you should see a bankruptcy attorney to make sure the benefits of filling bankruptcy outweigh the consequences.

The Boston bankruptcy lawyers at Esher Rossi will discuss your financial restructuring options. Our bankruptcy lawyers serve all of Massachusetts including Boston, the Greater Boston MetroWest region, Cape Cod and the cities of Boston, Cambridge, Cape Cod, Framingham, LowellNewton, and Worcester.

Bankruptcy Wipes Out Credit Card and Other Types of Unsecured Debts

The primary reason people file bankruptcy in Massachusetts is to obtain a court-ordered discharge of debt. However, not all forms of debt are dischargeable in bankruptcy. Before you file bankruptcy in Massachusetts, it is important to understand the nature of your debts, and which debts can and cannot be discharged in bankruptcy.

Esher Rossi is a full service Massachusetts insolvency and financial restructuring firm. Our bankruptcy attorneys represent consumer and business debtors as well as creditors, trustees, creditors’ committees, and investors, in all aspects of distressed economic  and bankruptcy situations including Chapter 7 bankruptcy, Chapter 11 bankruptcy, Chapter 13 bankruptcy, mediation and arbitration services. [Read more…]

Bostonian Legal Group