TelexFREE Sends 'Important Information' to its Customers and Promoters (Independent Sales Associates)

INFORMATION FOR CUSTOMERS AND PROMOTERS

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The embattled TelexFREE, which at various times had shamelessly lied to its loyal promoters, have in the midst of its present woes, just communicated what it calls 'Important Information' to all of its customers and promoters (which it now refers to as 'Independent Sales Associates').

The information entitled, "Important Information for TelexFREE Customers and Independent Sales Associates" can be seen on visiting the now inactive Telexfree website at http:///www.telexfree.com.

The Official Communication

Reproduced below is the message by Telexfree. Also see the image below.

Important Information for TelexFREE Customers and Independent Sales Associates
On April 13, 2014, TelexFree, Inc., TelexFree, LLC and TelexFree Financial, Inc. filed for protection under chapter 11 of the United States Code. Those cases currently are pending in the Bankruptcy Court for the District of Massachusetts under Case Nos. 14-40987, 14-40988 and 14-40989. Information can be found on the Bankruptcy Court’s docket at https://ecf.mab.uscourts.gov/ or at the Kurtzman Carson website at http://www.kccllc.net/TelexFree.

TelexFREE has suspended all business activity while we address certain issues in the Bankruptcy Court and address pending proceedings by the SEC and other government agencies. Since we are not currently in a position to support our network, it is likely Customers will experience either interruption or discontinuation of service. Independent Associates and Promoters should not be representing TelexFree on a going forward basis absent approval of a new compensation plan by the Bankruptcy Court.

We continue to believe strongly in the TelexFREE VoIP product and the direct selling model. At this point, however, we do not know when or if we will be able to persuade the Bankruptcy Court and other legal bodies of the value of our VoIP service and the potential new TelexFREE products, and the viability of the TelexFree business. We continue to be hopeful that we will obtain approval from the Bankruptcy Court to restart day-to-day operations and restructure TelexFree’s VoIP business.

To our Customers and our Independent Associates, we thank you for your loyalty. While the issues we are facing are unfortunate, we remain dedicated to continuing the TelexFree VoIP and related telecommunications services.

Until then, you have our sincerest regard,
Telexfree

Below is a screenshot of the message.

Following Telexfree's filing for bankruptcy protection, the SEC had two days later on April 16 frozen all of the company's assets and filed a civil suit against it. However, last week, the US Attorney's Office launched a criminal case against the company and its principals, a move that resulted in the arrest of one of Telexfree co-owners (James Merril) with the other co-owner (Carlos Wanzeler) now on the run, all in a major escalation of events in the ongoing investigation of the firm.

In a press release last week, the DOJ had encouraged all potential victims to contact it by sending in their personal information.

If you believe that you are a victim of the alleged TelexFree, Inc. scheme, please send your contact information to the following address: USAMA.VictimAssistance@usdoj.gov

To access SEC TelexFREE Complaint Form, visit http://www.sec.state.ma.us/InvestorComplaint/telexfree.aspx (for ENGLISH); Or http://www.sec.state.ma.us/InvestorComplaint/telexfree_spanish.aspx (for SPANISH).