TelexFREE appointed Stephen Barr as Chapter 11 trustee to oversee case

By Kali Hays

New York, June 5 – TelexFREE, LLC has been appointed Stephen D. Barr as U.S. trustee in its Chapter 11 bankruptcy case, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Massachusetts.

Barr is a senior managing director of Mesirow Financial Consulting, LLC, a wholly owned subsidiary of Mesirow Financial Holdings, Inc., and the amount of his bond as trustee is set at $1 million.

As previously reported, the appointment of a trustee to oversee TelexFREE’s case was ordered May 30 by the U.S. Bankruptcy Court for the District of Nevada.

Before TelexFREE's case was transferred to Massachusetts from Nevada, U.S. trustee Tracy Hope Davis asked the Nevada court to order the appointment of a Chapter 11 trustee in light of a complaint filed against the company by the Securities and Exchange Commission.

The April 15 complaint filed by the SEC accuses the company of operating a $1 billion Ponzi scheme through "a fraudulent and unregistered offering of securities to Brazilian and Dominican immigrants," according to the motion.

TelexFREE, a private, Marlborough, Mass.-based telecommunications and multi-level marketing company, filed bankruptcy April 14. The Chapter 11 case number in the Massachusetts court is 14-40987.

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