The Telexfree program has
run into problems.
This is what we know about this.
Please understand that for now you will not be able to access the back
office. You will not be able to post ads. You will not be able make
withdrawals or access any of your information until the company is allowed
to conduct operations again. There is no way to know when that may be. For
now TelexFREE is shut down and will not be able to start operations again
until these allegations have been answered. This could be a prolonged
period.
TelexFREE faces some very
serious legal challenges. I assume you have all read the various articles
and postings online. Here is a summary of what we know:
BANKRUPTCY FILING:
TelexFREE filed for a chapter 11 bankruptcy in Nevada. This type of
bankruptcy allows a company to basically stop operations, reorganize and
then start operations again. It
appears that a judge has now allowed that to continue and there is a hearing
scheduled for April 17th in Nevada.
The reason it is filed in
Nevada is because that is the state where TelexFREE LLC is actually
registered. Many companies use Nevada to actually set up the company because
there is no state income tax there and they are quite business friendly.
Here is a link to the
document allowing the bankruptcy filing to continue.
http://www.kccllc.net/telexfree/document/1412524140415000000000005
Of
even greater importance now is a complaint filed by the State of
Massachusetts’ SEC Division. The complaint alleges the company engaged
in the fraudulent offer or sale of unregistered securities in the State of
Massachusetts. This is a very
serious charge and the document filed states that the SEC Division is
issuing a “ceast and decist order”. This means the company will have to
provide the SEC with all of the information they request. This could take a
prolonged time. Here is a link to the SEC filing.
http://www.sec.state.ma.us/sct/current/scttelexfree/Administrative-Complaint-TelexFREE-4-15-14.pdf
If the SEC determines they
are guilty, there would be a long process through the court system.
We all hope TelexFREE will
be able to meet these challenges and resume operations. But there is no way
to know what the future holds. We will continue to provide information and
we will notify you of any conference calls. There is a call scheduled for
later today at 4:00 PM Eastern Time. See the link below.
That is all we know at this time. We will update you if we get any other information.