Santiago De La Rosa settles with SEC and TelexFree Trustee
Following denial of his motion to dismiss, Santiago De La Rosa entered settlement negotiations with the SEC and TelexFree Trustee.
Those negotiations lead to a proposed settlement, which was approved by the court on July 31st.
Specific details of De La Rosa’s settlement haven’t been made public.
From court filings we know De La Rosa and his wife’s net winnings from TelexFree were calculated to be $585,731.
The SEC’s claims against De La Rosa for $1.7 million, including prejudgment interest.
As part of the approved settlement, De La Rosa will surrender balances in three bank accounts, two in his name and one held by Magica Media Corp.
De La Rosa will also return an additional $100,000 to the Trustee.
Of the original eight individually named defendants in the SEC’s 2014 lawsuit, only Carlos Wanzeler and Faith Sloan have not settled.
Wanzeler fled the US and is a fugitive hiding out in Brazil. Sloan, through her “Cryptocurrency Queen Wiki” persona, continues to promote dubious cryptocurrency schemes on Facebook.
Update 15th August 2018 – The SEC has revealed De La Rosa’s specific clawback amount in an August 14th press-release;
The judgment also orders De la Rosa to pay $1,092,013 in disgorgement and prejudgment interest, but that is deemed satisfied by an order requiring De la Rosa to transfer certain assets valued at $992,013 and pay $100,000 to settle an adversary action in a related bankruptcy case.
Wanzeler is still hiding in Brazil. No word on the current status of Sloan with respect to TelexFree litigation.
FAITH SLOAN- This scumbag needs to be behind bars for stealing from victims all over the world. I hope the SEC comes down hard on this crook….
Wasn’t Sloan court ordered to not participate in any ponzie or pyramid schemes?
I guess she feels that she is above any law.
Will the money stuck pay all creditors? I have $ 16,000, how much of this money should I recover?
No, only those with approved claims.
Depends on your claim determination. If you’ve submitted a claim, had it approved but haven’t yet received a determination, sit tight.
Article updated with specific De La Rosa clawback amount (over a million).
FRCKING A!!!!! Looks like Clawback efforts will be VERY effective/fruitful.