TelexFree, LLC (D. Mass.) Bankruptcy New Filing Alert: Order Regarding The Motion For Authority To Enter Into A Transaction Which Is Outside The Ordinary Course Of Business

On November 25, 2015, an order regarding the motion for authority to enter into a transaction which is outside the ordinary course of business was filed in the bankruptcy case of TelexFree, LLC (D. Mass.) and its affiliates.

The filing was assigned docket number 654 and is described on the court’s official docket as follows:

Order dated 11/25/2015 Re: [623] Motion filed by Trustee Stephen Darr for Entry of Order Finding that Debtors Engaged in Ponzi and Pyramid Scheme and Related Relief . EVIDENTIARY HEARING HELD ON NOVEMBER 24, 2015. FOR THE REASONS SET FORTH ON THE RECORD OF THE HEARING I HEREBY FIND AND ORDER THAT: 1. EACH OF THE DEBTORS IN THESE JOINTLY ADMINISTERED CASES OPERATED A PONZI AND PYRAMID SCHEME. THIS RULING IS THE LAW OF THE CASE IN EACH OF THE JOINTLY ADMINISTERED CASES. 2. THE DEBTORS ARE JOINTLY AND SEVERALLY LIABLE FOR THE CLAIMS OF THE PARTICIPANTS (AS THAT TERM IS DEFINED IN THE MOTION) IN THESE CASES. IN ADDITION, I FIND THAT THE RELIEF SOUGHT BY THE TRUSTEE IN THIS MOTION DID NOT REQUIRE THE COMMENCEMENT OF AN ADVERSARY PROCEEDING PURSUANT TO FRBP 7001 AND THAT IN ANY EVENT ALL CREDITORS AND PARTIES IN INTEREST, INCLUDING PARTICIPANTS, RECEIVED ADEQUATE NOTICE AND AN OPPORTUNITY TO BE HEARD AS TO PRAYERS (I), (III) AND (IV) OF THE MOTION. AS TO PRAYER (II), A FURTHER HEARING (NON-EVIDENTIARY) WILL BE HELD ON JANUARY 26, 2016, AT 10:00 A.M. (BOSTON TIME). RESPONSES, INCLUDING PROPOSED ORDERS, ARE DUE BY JANUARY 19, 2016, AT 4:30 P.M. (BOSTON TIME). ON OR BEFORE DECEMBER 7, 2015, THE TRUSTEE SHALL SERVE NOTICE OF THE HEARING AND RESPONSE DEADLINE AS WELL AS A PLAIN LANGUAGE EXPLANATION OF THE RELIEF SOUGHT IN PRAYER (II) OF THE MOTION ON THE SAME PARTIES AND IN THE SAME MANNER AS THE MOTION WAS PREVIOUSLY SERVED AND FILE A CERTIFICATE OF SUCH SERVICE. (meh, Usbc)

TelexFree, LLC (D. Mass.) filed for bankruptcy protection, or had an involuntary bankruptcy petition filed against it, on April 13, 2014. The bankruptcy case is pending before the United States Bankruptcy Court for the District of Massachusetts. The case number for the lead bankruptcy case is 14-40987. The bankruptcy case is currently assigned to United States Bankruptcy Judge Melvin Hoffman. The law firm of Greenberg Traurig, LLP is acting as lead bankruptcy counsel to TelexFree, LLC (D. Mass.) in the bankruptcy case.

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