WORCESTER — A federal judge has cleared TelexFree co-owner James M. Merrill for pre-trial release, reversing a magistrate judge's decision that had kept the Ashland man in custody on a charge of wire fraud.
Mr. Merrill must post bond of $900,000 secured by his house, his sister's Sutton home and a friend's home in East Falmouth, and he must meet other conditions, U.S. District Judge Timothy S. Hillman wrote in an order today.
Prosecutors had argued that Mr. Merrill could secure funds and assistance to flee. But prosecutors' evidence was not strong enough to counter the factors that could keep Mr. Merrill here, according to Mr. Hillman.
The judge wrote that, "given Merrill's strong family and community ties and the inability of the government to more fully substantiate its contention that Merrill has the international funds and contacts that would allow him to successfully flee the country, this Court finds that Merrill should be released," subject to conditions.
Prosecutors allege that TelexFree Inc. of Marlboro was a massive pyramid scheme run by Mr. Merrill and co-owner Carlos Wanzeler, who has apparently fled the United States to his native Brazil. Mr. Merrill was arrested in May.
TelexFree sold internet telephone services in a number of countries. Most of its money, however, came from promoters who paid set amounts on the promise that they could earn guaranteed returns simply by placing advertisements for TelexFree on designated websites, authorities allege.
The company filed for bankruptcy protection in April, and a number of individuals associated with the business are facing criminal charges.
In May, Magistrate Judge David H. Hennessey ordered Mr. Merrill held pending trial, saying the matter was a close call.
Mr. Hillman agreed, writing that, "Merrill, if convicted, could face a substantial sentence and that the case against Merrill appears, at this juncture, to be a strong one."
Yet Mr. Merrill has demonstrated strong family and community ties and did not flee when he had the opportunity, Mr. Hillman wrote.
Mr. Merrill must post bond of $900,000 secured by his house, his sister's Sutton home and a friend's home in East Falmouth, and he must meet other conditions, U.S. District Judge Timothy S. Hillman wrote in an order today.
Prosecutors had argued that Mr. Merrill could secure funds and assistance to flee. But prosecutors' evidence was not strong enough to counter the factors that could keep Mr. Merrill here, according to Mr. Hillman.
The judge wrote that, "given Merrill's strong family and community ties and the inability of the government to more fully substantiate its contention that Merrill has the international funds and contacts that would allow him to successfully flee the country, this Court finds that Merrill should be released," subject to conditions.
Prosecutors allege that TelexFree Inc. of Marlboro was a massive pyramid scheme run by Mr. Merrill and co-owner Carlos Wanzeler, who has apparently fled the United States to his native Brazil. Mr. Merrill was arrested in May.
TelexFree sold internet telephone services in a number of countries. Most of its money, however, came from promoters who paid set amounts on the promise that they could earn guaranteed returns simply by placing advertisements for TelexFree on designated websites, authorities allege.
The company filed for bankruptcy protection in April, and a number of individuals associated with the business are facing criminal charges.
In May, Magistrate Judge David H. Hennessey ordered Mr. Merrill held pending trial, saying the matter was a close call.
Mr. Hillman agreed, writing that, "Merrill, if convicted, could face a substantial sentence and that the case against Merrill appears, at this juncture, to be a strong one."
Yet Mr. Merrill has demonstrated strong family and community ties and did not flee when he had the opportunity, Mr. Hillman wrote.
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