Stephen Darr, the TelexFree Trustee, has filed a second round of subpoena requests targeting eight individuals and companies. This action follows earlier permission granted to Darr for similar investigative measures. The trustee seeks documents and oral examinations to advance his investigation into TelexFree's financial affairs.
The subpoena requests name several parties. Telecom Logic and Opt3 Solutions, both IT service providers, are sought for documents related to their computer and network support for TelexFree. Lane Powell Prof. Corp and Garvey Schubert Barer, who provided prepetition legal advice to TelexFree, are also included.
Further requests target The Sheffield Group, a firm that offered multi-level marketing consulting to TelexFree before its bankruptcy filing. Joele Frank, Wilkinson, Brimmer, Katcher, a public relations and investor relations firm, provided services to TelexFree both before and after the bankruptcy petition date.
The subpoena list also includes Gerald Nehra and the law offices of Nehra & Waak, along with Babener and Associates. Both Nehra and Babener acted as prepetition counsel to TelexFree regarding its multi-level marketing program. They likely hold relevant information about TelexFree's business model.
A significant portion of the requests target payment processors: Global Payroll Gateway (GPG), International Payout Systems (i-Payout), ProPay, Argus Payments, and Allied Wallet. These companies allegedly processed entrance fees from participants to TelexFree and facilitated commission payouts.
i-Payout, in particular, previously maintained that TelexFree was not a Ponzi scheme. Gerry Nehra made similar assertions. The information obtained from these entities will clarify the basis for such claims. i-Payout handled TelexFree's funds until regulators intervened. The company only terminated TelexFree's account, citing money laundering concerns, once the legal actions began.