When owners James Merrill and Carlos Wanzeler decided they would no longer face TelexFree’s angry owners, it was left up to Steven Labriola to come up with excuses.
Perhaps the most infamous statement by Labriola was in relation to TelexFree’s bankruptcy.
In misguided belief it would see the SEC ignore millions of dollars in Ponzi fraud, TelexFree filed for an emergency Chapter 11 bankruptcy in early 2014.
At the time, Labriola described TelexFree’s collapse as “
the most awesome thing
“.
When angry TelexFree investors stormed the company’s offices a month earlier, Labriola was
sent out to deal with them
while management hid in their offices.
Despite the appearance of “rock star” status at TelexFree events, ultimately Labriola was a fall guy.
While the owners of TelexFree and top investors made millions, Labriola publicly fronted the $3 billion dollar Ponzi scheme for less than $100,000.
Steven Labriola was a named defendant in the original
TelexFree SEC complaint
filed in April, 2014.
In a new “Agreement For Judgement” filing on July 3rd, Labriola and the SEC have agreed he’ll pay back TelexFree victims $98,963.
An additional $25,453 civil penalty was dropped, owing to Labriola’s “sworn representations” of Labriola’s current financial condition.
Labriola’s disgorgement payment plan will see a number of bank account cleared out, after which he’s required to cough up $20,727 ‘
in quarterly installments for five years
‘.
The agreement also sees Labriola consent to waiving his right to a jury trial and appeal.
Should the DOJ press criminal charges against Labriola at a later date (unlikely IMO), the SEC judgement agreement will have no bearing on the case.
The Final Judgment agreement is dated June 7th and was filed on July 5th.
As at the time of publication Judge Gorton has yet to approve the agreement.
Last I heard Labriola was
working as a night shift manager at Domino’s Pizza
. Whether he’s still working at Domino’s is unclear.
Update 17th July 2017 –
On July 13th Judge Gorton approved Final Judgment
against Steven Labriola.
🤖 Quick Answer
Who is Steven Labriola and what is his connection to TelexFree?Steven Labriola served as a public-facing representative for TelexFree, a Ponzi scheme operated by owners James Merrill and Carlos Wanzeler. He was tasked with managing investor relations and addressing angry stakeholders when the fraudulent company collapsed in 2014, ultimately becoming a fall guy for the scheme.
Why was Steven Labriola ordered to return $98,963 to TelexFree victims?
Labriola was ordered to return funds as part of legal proceedings against TelexFree's Ponzi fraud. His involvement in promoting and representing the scheme during its operations made him liable for restitution to defrauded investors who lost money in the fraudulent multi-level marketing enterprise.
**What role did Labriola play during TelexFree's
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