Fidelity Bank president subpoenaed in TelexFREE case
Courtesy photo
John F. Merrill, president of Leominster-based Fidelity Bank, has been subpoenaed in the TelexFree case. Merrill will testify before the Massachusetts Securities Division on May 29.
UPDATED: Secretary of State William F. Galvin has subpoenaed Fidelity Bank President John F. Merrill to be interviewed in connection with the alleged TelexFREE pyramid scheme that imploded in April.
Brian McNiff, a spokesman for Galvin, said Merrill is the brother of James Merrill, a co-owner of TelexFREE who is facing criminal charges in connection with the alleged $1 billion scheme, which Galvin’s office claims preyed on Brazilian immigrants. Headquartered in Marlborough, TelexFree filed for Chapter 11 bankruptcy protection last month.
McNiff said Leominster-based Fidelity provided banking services to TelexFREE, but that Galvin’s office is only interested in Merrill’s knowledge of the alleged scheme at this time, not the bank’s involvement. Merrill is to testify before the Securities Division of Galvin’s office on May 29, according to McNiff.
James Merrill is being held pending trial after being ruled a flight risk. His business partner, Carlos Wanzeler, fled the country.
Karen Schwartzman, a Boston-based crisis public relations expert hired by Fidelity to handle media inquiries related to the TelexFree matter, said Merrill has declined to comment on the matter. Schwartzman said Fidelity has complied with investigators.
“Normal banking procedures for opening accounts were followed. The accounts were closed by the bank within months of them having been opened. We have no reason to believe that the bank did anything wrong. The audit committee of the bank is conducting an independent review to ensure that there was no inappropriate handling of these accounts. The bank is cooperating fully with law enforcement and has been from the beginning and the bank has been fully transparent with its regulates,” Schwartzman said.
Schwartzman declined to provide details about why the accounts were closed, or how much money Fidelity handled for TelexFree.
Merrill’s position as president has not changed as a result of the investigation, Schwartzman said.
WBJ Web Partners
Most Recent
Most Recent
0 Comments