Massachusetts announces settlement in pyramid scheme
BOSTON (AP) — Officials say some 14,000 Massachusetts residents who were victims of an alleged pyramid scheme will receive money from a settlement reached with a Fitchburg bank.
Secretary of State William Galvin says the bank held accounts for Telexfree, the Internet phone company accused last year of operating the international scheme that targeted Brazilian immigrants in the Boston-area.
Each of the investors will receive $202.52 from a fund created under the $2.9 million settlement. Galvin says while it won’t make investors whole, it marks the first monetary relief for Massachusetts victims.
Telexfree filed for bankruptcy in Nevada in April 2014 and its two principals have been indicted on federal charges or wire fraud and conspiracy. Securities regulators have frozen the company’s assets.