Randy Crosby folds, enters into negotiations with the SEC
After holding out for three and a half years, Randy Crosby has finally entered into negotiations with the SEC.
The SEC have identified Crosby as “one of the most successful promoters of TelexFree”.
The news of settlement negotiations is a notable departure from Crosby’s defense.
On December 12th Randy Crosby filed a motion requested an extension of time to reply to the SEC’s Second Amended Complaint.
The motion was denied the same day, with Crosby filing a Motion for Reconsideration three days later.
In the motion, Crosby reveals
(The SEC) filed its Second Amended Complaint on September 28, 2017.
Beginning on or around that date, Crosby and the SEC began discussing the possibility of resolving the case against him.
More specifically, Crosby prepared financial statements for the SEC containing detailed information, and the SEC has been diligently reviewing that information so that the parties can attempt to resolve the case.
The SEC has represented that it believes it will have completed its review of Crosby’s finances and will be prepared to make an offer within 60 days; Crosby has sought a 30- day extension and will update the Court on any progress or lack thereof at that time.
In light of this new information, Crosby’s motion was granted.
When exactly Crosby provided financial statements to the SEC is unclear. The SEC’s 60 day offer window expiry appears to be on or around January 10th, the date Crosby requested an extension until.
With Crosby folding, of TelexFree’s top scammers holding out only Faith Sloan and Santiago De La Rosa remain.
In a recent bid to have the second amended complaint dismissed, De La Rosa described the SEC’s assertion that TelexFree was a Ponzi scheme as mere “theory”.
Despite the odds being utterly stacked against them, Sloan and De La Rosa seem hell-bent on dragging out clawback litigation for as long as possible.
Our next TelexFree update will likely be on or around January 10th. Stay tuned…