Despite vehement objection from former TelexFree affiliate Daniil Shoyfer, a preliminary injunction was granted against him on February 12th.

Scott Miller was also named in the injunction however, until Shoyfer, he offered up no opposition.

The injunction was granted as part of
a civil lawsuit brought against several top TelexFree investors
, with Shoyfer and Miller the only two not already subject to a preliminary injunction.

Putative Class Representatives Rita Dos Santos and Celio Da Silva had sought the injunction, on the basis

their lawsuit against the defendants would likely succeed

that if Shoyfer and Miller weren’t restrained, they would “suffer irreparable harm”

the balance of equities tipped in favor of the plaintiffs and

the granting of an injunction against Shoyfer and Miller was in the public interest

In his ruling, Judge Hillman wrote

I am satisfied that Plaintiffs have established a reasonable likelihood of success on the merits as to their unjust enrichment claim.

Hillman did however stipulate that Santos and Da Silva’s claim that Shoyfer and Miller were “top level promoters” in TelexFree would need to be supported.

The Plaintiffs’ depiction of Shoyfer as a “Top Level Promoter” who swindled TelexFree victims out of millions of dollars is, on the current record, nothing more than unsupported rhetoric.

Indeed, the affidavits submitted by Plaintiffs in support of their request for injunctive relief are replete with unauthenticated texts and e-mails and in some instances, include assertions by the affiant which from their context are clearly not based on personal knowledge (and therefore, should not have been included).

With respect to Santos and Da Silva suffering irreparable harm, Hillman acknowledged this was “a more difficult question”.

Although this is a close call, I find that the nature of Plaintiffs’ unjust enrichment claim is such that they do not have an adequate remedy at law.

At the same time, I find that the assets restrained must have a nexus to Plaintiffs’ claim, that is, any assets restrained must be directly or indirectly traceable to money received by Shoyfer in his capacity as a TelexFree promoter.

Little discussion is warranted with respect to the last two factors.

Unless restrained and enjoined by the Court, Shoyfer may dissipate and/or conceal assets that would be available to compensate the Plaintiffs.

Therefore, I find that the balance of equities tips in Plaintiffs’ favor, and that an injunction is in the public interest.

The Plaintiffs have established that all four factors weigh in their favor, and therefore, a preliminary injunction shall enter against the Individual Defendants.

The preliminary injunction granted takes into consideration the specific circumstances of Santos and Da Silva’s filed lawsuit, with Hillman ordering Shoyfer and Miller’s assets frozen.

An allowance for “ordinary living expenses” is permitted, with Shoyfer and Miller required to file a “statement of accounting” e

🤖 Quick Answer

Who were the defendants named in the TelexFree preliminary injunction?
Daniil Shoyfer and Scott Miller were the two defendants named in the preliminary injunction granted on February 12th. They were the only top TelexFree investors not previously subject to such restrictions, making them the final defendants in the civil lawsuit brought by putative class representatives Rita Dos Santos and Celio Da Silva.

What grounds justified granting the preliminary injunction?
The court determined that the plaintiffs' lawsuit would likely succeed, that Shoyfer and Miller would cause irreparable harm if unrestricted, and that the balance of equities favored the plaintiffs' position, thereby satisfying all requirements for granting preliminary injunctive relief.

How did the defendants respond to the injunction proceedings?
While Daniil Shoyfer vehemently opposed the preliminary injunction against him

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