Jordan Maglich Comments on Investment Scheme in Wall Street Journal LawBlog

8/14/2014

Jordan_Maglich

Trustee Starts Years-Long Task of Tracing Assets of Alleged Ponzi Scheme

by TOM CORRIGAN
Stephen Darr is no stranger to complex bankruptcies, but one case tops the list.

In June, a bankruptcy judge authorized Mr. Darr to take control of TelexFree LLC, a Massachusetts-based company accused by federal securities regulators of operating a massive pyramid scheme.

“I’ve been involved in a lot of interesting cases,” said Mr. Darr, a senior managing director at Mesirow Financial Consulting LLC in Boston. “TelexFree is number one.”

Mr. Darr, who has 35 years of experience including cases involving radiation contamination, environmental damage and illegal firearms distribution, is investigating possible fraud at TelexFree as well as marshaling assets that might one day be returned to its investors.

“He has a very difficult and time-consuming task ahead of him,” said Jordan Maglich, an attorney with Wiand Guerra King and the author of the Ponzitracker blog. “He’s in charge of a scheme that may not be the largest scheme in terms of assets, but it may be one of the largest frauds in terms of victims.”

Read the article in its entirety

Visit Ponzitracker, authored by Mr. Maglich.