A former TelexFree attorney’s estate and investors who lost money in the company’s multibillion-dollar Ponzi scheme are seeking preliminary approval for a $3.45 million settlement.
The settlement involves Anthony Cellucci, along with four other named plaintiffs, and the estate of Jeffrey A. Babener, a late corporate attorney of TelexFree. According to a joint filing in the US District Court for the District of Massachusetts, the arrangement aims to resolve claims linked to the infamous TelexFree scam that defrauded nearly 2 million people from 2012 to 2014.
The TelexFree scam led to numerous legal battles and lawsuits involving both the company and various associated entities, including banks that managed the illicit funds. Half of the affected investors pursued legal redress against TelexFree and a plethora of defendants.
The current settlement proposal is subject to judicial review and seeks to meet all pre-approval requirements. Defendants have consistently denied liability in the matter, but the settlement, if approved, would bring some closure to the long-standing legal saga for the involved parties.