Can you file an April Fool’s motion with a United States court?

As far back as I can remember, defendants in Ponzi scheme litigation have always had to prove seized and/or frozen funds were not related to financial fraud.

TelexFree investor Daniil Shoyfer provides the latest example of this. In a filing January 2016 filing, Shoyfer argued that recently frozen funds and assets belonging to him were
not related
to the
$3 billion dollar Ponzi scheme
.

Specifically, Shoyfer argued that

none of the money (he) ever made from TelexFree was ever used to purchase any of the investment properties (he) own(s).

To support the claim, Shoyfer filed evidence as attached exhibits to his filing.

Now comes Faith Sloan, demanding that $30,800 in frozen funds be released.

The funds Sloan (right) is demanding be released were frozen as part of a
preliminary injunction granted against her
 back in May, 2014.

In her April 1st filing, Sloan claims she needs the $30,800 to retain legal counsel to “defend her in this matter”.

The matter in question is the
SEC’s civil lawsuit against TelexFree
, in which Sloan is a named defendant.

Rather than provide proof that the funds in question weren’t derived from her involvement in TelexFree, Sloan asserts

the moneys and other assets that the Court has frozen belong to her; and the Government (“SEC”) has offered no evidence that the assets that the Court has frozen are in any way “tainted”, as that term is construed in Luis v. United States.

See also the Sixth Amendment to the Constitution of the United States.

Nor has the SEC offered evidence to prove that probable cause exists to believe that the assets the Court has frozen are traceable to the alleged misconduct that Sloan is charged with.

I’m not a lawyer… but is Sloan suggesting the SEC were granted a preliminary injunction against her without probable cause? 
Seriously?

For those unfamiliar with the Sixth Amendment cited,

the Sixth Amendment guarantees the rights of criminal defendants, including the right to a public trial without unnecessary delay, the right to a lawyer, the right to an impartial jury, and the right to know who your accusers are and the nature of the charges and evidence against you.

How that fits in I’m note sure. The asset freeze doesn’t deny her access to any of the above – it just stops her from using Ponzi money to fund it.

Of the funds in question, $800 is frozen in a Bank of America account and $30,000 was transferred to her attorney, two days before the preliminary injunction was granted.

How exactly Sloan transferred the money to her lawyer is unclear, as prior to the preliminary injunction Sloan’s assets were subject to
a temporary freeze via TRO
.

In any event, the lack of proof provided by Sloan as to the origin of the funds, in contrast to pretty much every other applicant I’ve ever seen requesting funds be unfrozen in Ponzi litigation, is telling.

Any lawyers reading want to clarify whether the onus is on the SEC to

🤖 Quick Answer

Can defendants in Ponzi scheme litigation recover frozen assets?
Defendants in Ponzi scheme cases must legally demonstrate that seized or frozen funds are unrelated to fraudulent activities. Courts require substantial evidence, such as documentation proving funds originated from legitimate sources independent of the scheme, before considering asset release requests.

What arguments did TelexFree investor Daniil Shoyfer present regarding his frozen assets?
Shoyfer contended that frozen funds and properties were unconnected to the TelexFree Ponzi scheme. He specifically argued that no proceeds from TelexFree investments were utilized to purchase his real estate holdings, submitting documentary evidence as exhibit attachments to support his claims.

What is Faith Sloan's position concerning the $30,800 in frozen funds?
Faith Sloan has filed a demand for the release of $30,800 in frozen assets, presumably arguing that

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