SEC moves to drop securities fraud claims against Faith Sloan
In a March 27th filing, the SEC has moved to voluntarily dismiss two claims of securities fraud against TelexFree defendant Faith Sloan.
The two claims pertain to alleged violations of the Securities Act. No reason for the voluntary dismissal is provided.
The remaining claim the SEC has against Sloan is a $1.2 million summary judgment, which is still in place.
Without reasoning it’s difficult to assess why the SEC has dropped the securities fraud claims.
Given they’re still pursuing the summary judgment perhaps the SEC is happy with just recovering Sloan’s TelexFree gains plus interest.
I can’t speak to Sloan’s specific finances but maybe after returning $1.2 million there won’t be much left.
Still, it remains a bit of an odd move by the SEC. In the absence of a settlement they typically tend to pursue judgment regardless of whether the offending party’s finances.
As of March 28th, Sloan continues to commit securities fraud via participation in cryptocurrency Ponzi schemes;
SCF Token is part of Super CodingFly, an MLM crypto Ponzi scheme we reviewed a few days ago.
Given Sloan’s continued public participation in fraudulent schemes, the SEC’s decision to drop securities fraud charges against her is certainly ironic.
Sloan’s summary judgment hearing has been scheduled for May 13th. Stay tuned…
Update 12th April 2019 – Pending approval of a proposed settlement with the SEC, Faith Sloan’s trial has been postponed to June 10th.