Following a request that a proposed order be drafted up and sent a court email address, an actual order on the Trustee’s motion for privilege waiver was posted yesterday.

The short of it is
the order was approved
, with any client-attorney privilege TelexFree might have otherwise enjoyed waived in connection

with the prosecution by the United States Department of Justice of criminal indictments issued against Carlos Wanzeler and James Merrill, and in connection with the civil action commenced by the Securities and Exchange Commission against the Debtors and other parties.

Objections filed by TelexFree owners Carlos Wanzeler and James Merrill were acknowledged, but overruled.

Since the order was passed two additional interesting documents have appeared on KCC’s log of documents related to the case.

Both of the documents in question have been filed are from Joseph Davis, an attorney an shareholder of Greenberg Truarig.

The documents in question are supplement declarations, which appear to be in support of assertions the Trustee made relating to the seized data, concerning any possible breach of attorney-privilege between Merrill, Wanzeler and their personal lawyers.

To that end, Davis in both declarations
distances himself and Greenberg Traurig from having personally represented Wanzeler or Merrill
in any extended capacity.

At the hearing on September 23, the Court directed Greenberg Traurig to supplement paragraph 6 of the Declaration of Joseph P. Davis III in Support of the Greenberg Traurig Retention Application to further clarify Greenberg Traurig’s role in connection with the interviews on the record of Carlos Wanzeler and James Merrill by the Massachusetts Securities Division.

Greenberg Traurig was retained by Debtor TelexFree, Inc. (“TelexFree”) in February 2014 as co-counsel with the firm of Garvey Schubert Barer in connection with the investigation initiated by the MSD and in responding to information requests from the MSD (the “Investigation”).

Jeffrey Babener of the firm of Babener & Associates also provided legal counsel to TelexFree related to the Investigation.

On February 12, 2014, attorneys Mark Berthiaume of Greenberg Traurig and Robert Weaver of Garvey Schubert Barer attended a meeting with representatives of TelexFree, including Mr. Wanzeler and Mr. Merrill, at the offices of TelexFree in Marlborough.

At the meeting, Mr. Berthiaume and Mr. Weaver instructed Mr. Wanzeler and Mr. Merrill that Greenberg Traurig and Garvey Schubert Barer had been retained by, and would be acting on behalf of, TelexFree and not Mr. Wanzeler and Mr. Merrill individually.

On March 3, 2014, Mr. Weaver, on behalf of Garvey Schubert Barer and Greenberg Traurig, emailed letters to Mr. Wanzeler and Mr. Merrill regarding the subpoenas for the sworn testimony of Messrs. Wanzeler and Merrill scheduled for March 25, 2014 and March 26, 2014.

In the Representation Notice Letter, Mr. Weaver stated that he was writing “to memorialize a discussion Ma

🤖 Quick Answer

What was approved regarding TelexFree's trustee privilege waiver?
The court approved the trustee's motion to waive client-attorney privilege held by TelexFree. This waiver applies to the criminal prosecution by the Department of Justice against Carlos Wanzeler and James Merrill, and the civil action filed by the Securities and Exchange Commission against the debtors and related parties.

Did TelexFree owners challenge the privilege waiver decision?
Yes, objections were filed by Carlos Wanzeler and James Merrill against the privilege waiver. However, the court acknowledged but overruled their objections, allowing the order to proceed as proposed by the trustee.

🔗 Related Articles

- TelexFree insiders try to cut prelim injunction deals
- James Merrill “regrets ever being associated” with TelexFree
- James Merrill denied bail, Carlos Wanzeler surfaces in Brazil
- TelexFree communications registrations in jeopardy?
- TelexFree file for bankruptcy in the US