Gerry Nehra

Quick summary on Gerry Nehra

Gerry Nehra, a legal professional known for his involvement in the multi-level marketing (MLM) industry, recently settled a class-action lawsuit related to his role as outside legal counsel for TelexFree, a company exposed as operating a $3 billion Ponzi scheme.

Background on TelexFree: TelexFree was a company that operated a massive Ponzi scheme, defrauding investors of approximately $3 billion. The scheme promised high returns through the sale of Voice over Internet Protocol (VoIP) services but primarily compensated participants for recruiting new members rather than selling products.

Nehra’s Involvement: As TelexFree’s U.S. outside legal counsel, Nehra provided legal services through his now-defunct firm, Nehra and Waak. His responsibilities included facilitating communications between TelexFree and various entities, consulting on legal matters, and performing other tasks for the company. Notably, in 2013, Nehra demanded that BehindMLM, a watchdog website, cease reporting on TelexFree’s fraudulent operations.

Settlement Details: In the settlement of the class-action lawsuit, Nehra agreed to cooperate fully with the ongoing legal proceedings. This cooperation includes authenticating documents, providing evidence against current and former defendants, and testifying about TelexFree’s unlawful business model. Importantly, the settlement did not involve any monetary compensation from Nehra, as he asserted that he had not received any funds beyond his disclosed legal fees for services rendered between 2012 and 2014.

Conclusion: The settlement between Gerry Nehra and the plaintiffs in the TelexFree class-action lawsuit highlights the significant role legal professionals can play in either enabling or preventing fraudulent schemes. Nehra’s agreement to cooperate emphasizes the importance of accountability and transparency in the legal field, especially concerning MLM enterprises.