telexfree-logoEarlier in August the SEC filed a Motion For Contempt against Sannderly Rodrigues.

In their motion, the SEC argued that Rodrigues had failed to provide the regulator with detailed accounting records for over a year. This, the regulator contended, was grounds to send Rodrigues back to jail until the court order had been complied with.

Rodrigues’ initial defense against the motion saw him hilariously claim he doesn’t speak English.

After the SEC declared this to be “nonsense“, Rodrigues dropped the defense and instead claimed that providing the requested information might incriminate him in related investigations.

That was back in October, with mediation efforts continuing between the SEC and Rodrigues in an attempt to resolve the ongoing issue.

Now, in a Status Report filed by the SEC on November 30th, it has been revealed that these mediation efforts have failed to resolve the matter.

The parties have not resolved the issue of the return of funds reflecting dissipation of assets by Rodrigues in violation of this Court’s Asset Freeze order.

That’s not to say the SEC didn’t obtain the information they wanted though…

How the regulator obtained Rodrigues’ detailed financial records is unclear, with the agency only revealing that

The Commission has also taken other steps to obtain the information required by the court-ordered accounting without causing defendant Rodrigues to waive his right against self incrimination under the Fifth Amendment.

As a result of these other steps to obtain information, the Commission received almost all information required by the court-ordered accounting.

Missing information pertains to Rodrigues’ offshore accounts, through which Rodrigues laundered stolen TelexFree Ponzi funds.

To what extent the information gleaned by the SEC will assist them (and other agencies with access to the information), is unclear. Ditto how important Rodrigues’ offshore accounting records are.

What we do know though is that even though they have most of the information they sought, the SEC aren’t letting up.

Arguing that despite most of the information sought being obtained through alternative methods, Rodrigues to date has still failed to hand over stolen victim funds he dissipated through identified accounts.

Because Rodrigues has failed to return funds equal to his prior dissipation of assets, the Commission respectfully requests that this Court take action on that part of its motion for contempt.

Whereas Rodrigues might argue his accounting records might incriminate him, I don’t think the same argument will hold up with respect to funds transferred.

The SEC likely have a blueprint of funds Rodrigues transferred outside of the US, with where those funds wound up irrelevant to compliance with their being turned over.

Rodrigues has to turn over those funds now that they’ve been identified, with the SEC otherwise looking to win their contempt motion against him.

Whether or not that will see Rodrigues returned to jail is uncertain, but it’s what the agency are pushing for.

Personally I think the SEC and courts have been more than patient with Rodrigues. If further jail time is what it takes to get him to comply, then so be it.

Stay tuned…


Footnote: Our thanks to Don@ASDUpdates for providing a copy of the SEC’s Status Report, filed on November 30th, 2015.