This past Monday, Multinational company, TelexFree, filed for bankruptcy protection in a federal court in Nevada. The next day FBI and Homeland Security agents raided the company’s offices in Marlborough, Massachusetts.

On Thursday, the Securities and Exchange Commission disclosed it has filed charges against the Marlborough-based telecommunications and multi-level marketing firm TelexFREE.

The commission's pronouncement came two days after the Massachusetts Secretary of State's office filed its own complaint against the company , which is confronting charges of being a billion-dollar, international pyramid scheme, and federal investigators raided its Cedar Hill Street offices.

So far the SEC has identified roughly $39 million in assets in public records – just a minor piece of a large pie that estimates $300 million the company is alleged to have brought in since November 2012. During the agents’ search of the offices, a deputy sheriff stopped chief financial officer Joseph H. Craft as he sought to leave. He was carrying a bag and a computer. He told the deputy he was merely a consultant, helping TelexFree plan its bankruptcy case. When the Telex CEO was apprehended he had a bag with over $37,000,000 in cashiers checks. There must be more money to be located.

If the SEC's case against TelexFREE is fruitful in court, the commission could ultimately set up a method with which to repay investors who have lost money in the Ponzi scheme. But at this point, the commission has no procedure by which defrauded customers are able to file claims.

However, since TlexFREE filed for bankruptcy protection, the Bankruptcy Code does contain a specific manner for creditors of TelexFREE (the debtor) to file a claim for their share of the money located.

The Chapter 11 Bankruptcy Process

A Chapter 11 case begins with the filing of a petition in bankruptcy court. After filing the Debtor Continues running the Business Operations.

In most Chapter 11 cases, a trustee is not appointed. In its place, the debtor continues to manage its business in the ordinary course as the “debtor in possession” (or “DIP”). In some cases, the bankruptcy court will appoint a trustee to take over operations from the debtor if it discoveries sufficient cause. Sufficient cause for appointing a trustee includes fraud, dishonesty, incompetence, and gross mismanagement of the debtor’s affairs.

In the case of TelexFREE, there is little doubt that a Trustee will be appointed to run the day to day operation of the debtor, TelexFREE.

While some debtor ordinarily continues in business after it files Chapter 11, it loses control over major decisions. The bankruptcy court takes over. Including other things, the bankruptcy court must approve:

1. any sale of assets, such as property or real property (except for items such as inventory sold by a retail debtor in the ordinary course of business)

2. entering into or breaking a lease of real or personal property

3. mortgage or other secured financing arrangements that allow the debtor to borrow money after the case is filed

4. shutting down or expanding business operations

5. entering into or modifying union, vendor, licensing, and other contracts and agreements, and

6. the retention of, and payment of fees and expenses to, attorneys and other professionals.

Ordinarily, the debtor has the exclusive right for four months after it files Chapter 11 to propose a reorganization plan. Upon a showing of good cause, the court can extend the debtor’s “exclusivity period” to file a Chapter 11 plan to up 18 months after the petition date. The court also can shorten the exclusivity period depending on the circumstances.

A Chapter 11 plan allows a debtor to reorganize, or in other words, restructure, its financial affairs. A Chapter 11 plan is, in effect, a contract between the debtor and its creditors as to how it will operate and pay its obligations in the future.

Approval of a proposed plan is referred to as “confirmation.

What TelexFree Creditors (investors) must do To Protect their Interest and regain some or all of their investment.

Any creditor or indenture trustee may file a proof of claim within the time prescribed by the court.

File the Proof of Claim ASAP - also note, "Please file proof(s) of claim, if any, via US Mail or other hand delivery system. Facsimile and other electronic delivery methods are not acceptable. You must file an originally executed proof of claim. If you would like a copy of your claim returned to you as proof of receipt, please enclose an additional copy and a self-addressed postage-paid envelope."

WHERE TO FILE THE PROOF OF CLAIM

United States Bankruptcy Court, District of Nevada
Foley Federal Building
300 Las Vegas Boulevard South
Las Vegas, NV 89101
T: (702) 527-7000
http://www.nvb.uscourts.gov

Case Numbers: 14-12524, 14-12525, 14-12524

Any questions about this case call the U.S. Trustee:

United States Trustee
300 Las Vegas Boulevard
Suite 4300
Las Vegas, NV 89101

WHERE TO GET A FILLABLE PROOF OF CLAIM FORM TO FILE WITH THE BANKRUPTCY COURT?

You can get a sample of a Proof of Claim by going to http://www.wiwb.uscourts.gov/fillable_forms/ProofofClaim_B10.pdf..

YOU DO NOT NEED TO HIRE A LAWYER TO DO FILE YOUR CLAIM.

ADDITIONAL RECOMMENDATION TO PROVE TELLEXFREE DEFRAUDED YOU.

Also I recommend everyone to file a Complaint for Fraud with the Bankruptcy Court:

Office of the United States Trustee
Special Investigations Unit
300 Las Vegas Blvd. South,
Suite 4300
Las Vegas, Nevada 89101

Upon receipt, your complaint will be reviewed promptly. If the information furnished establishes a reasonable belief that a criminal violation has occurred, the matter will be referred to the United States Attorney. If the United States Attorney deems the matter to hold prosecutorial merit, it will be referred to the appropriate law enforcement agency for investigation. A clearly written statement containing copies of any available documentation will expedite this process.

Submit the following information:

• The bankruptcy case name and file number, together with copies of any pertinent court filings.
• A chronological summary of the matter.
• A narrative of what occurred. 
• Names, addresses and telephone numbers (to the extent available) of the subjects and witnesses known to you.

A LAST WORD

Most investors in Bernie Madoff's classic Ponzi scheme originally expected they had lost it all. But a new distribution announced Tuesday by court-appointed trustee Irving Picard brings the complete amount already returned to investors to over $5 billion. In total, Picard and his team have recouped about $9.3 billion.

So , don’t just give up. File your Proof of Claim as soon as you can and write a complaint to the U.S. Trustee as I explained about. If you do these two things, I am sure everyone will receive some money back. Best of Luck!

see also :http://news.jornal.us/article-681065.-Will-the-US-Bankruptcy-Laws-Protect-TelexFREE-.html