Joseph H. Craft, TelexFree's Chief Financial Officer, was caught attempting to flee with nearly $38 million in cashier's checks during an April 16th raid on the company's offices, according to a declaration filed in Massachusetts District Court. The FBI presented evidence related to Craft's actions.

Scott Stanley, an attorney with the SEC, filed the declaration. It came from John Soares, a special agent with the Department of Homeland Security. Soares' statement detailed events from a recent raid on TelexFree's offices by HSI and other agencies.

During the search warrant's execution, a Bristol County Deputy Sheriff encountered Craft entering an office. Craft tried to grab a laptop and a bag. He claimed he was a "consultant" helping TelexFree prepare for bankruptcy and that both items were personal property. The Deputy Sheriff stopped him, stating the items were subject to search.

HSI agents searched the bag. Inside, they found ten Wells Fargo N.A. cashier's checks. These checks totaled $37,948,296. Photos of the checks were included in the court declaration.

The SEC used this declaration to support an ex-parte emergency motion for a temporary restraining order against TelexFree. The court granted the order the same day.

TelexFree has since accused the Department of Homeland Security, the SEC, and the Bristol County Deputy Sheriff of lying. An April 19th press release from the company stated, "TelexFREE is concerned about recent inaccurate press reports and speculation regarding the Company and would like to set the record straight."

The release continued, "Joe Craft, TelexFree’s former consulting CFO, has been wrongfully accused of attempting to unlawfully remove funds or property from a TelexFREE location. The reports that Mr. Craft attempted to abscond with a laptop and cashier’s checks are false."

TelexFree offered an explanation for the checks. They claimed Craft held the cashier's checks because company bank accounts had closed. This closure, they said, forced the company to obtain funds as cashier's checks.

The company filed Chapter 11 bankruptcy cases. TelexFree stated it aimed to gather all company funds for the bankruptcy estate's benefit. Craft, they explained, took possession of the checks at the request of the company's counsel and advisors to protect the estate funds. Craft held the checks until they could be deposited into a new company safe deposit box or an escrow account TelexFree was establishing. The laptop, they maintained, was Craft's personal property.

TelexFree filed for Chapter 11 bankruptcy after closing its bank accounts.