So weak was Faith Sloan’s case for requesting a carve-out of $30,800 in suspected stolen Ponzi funds, that the Judge signing the order didn’t even bother to provide a reason for its denial.

On May 17th Judge Gorton denied Sloan’s second carve-out request with a scribbled “motion denied”, dated and signed.

Sloan had
requested $30,800
currently frozen through a
preliminary injunction
granted against her in May 2014.

Sloan offered up no proof to back her claim that the $30,800 was untainted. She also cited criminal litigation that had no bearing in the SEC’s civil case against her.

In response to Sloan’s carve-out request
the SEC pointed out as much
. In a second sur-reply to the request, the regulator went a step further and accused Sloan of lying and wasting the court’s time.

In denying Sloan’s carve-out request, it appears Judge Gorton agreed.

Sloan meanwhile is busy promoting
5000 Families
 and
Divvee
on Facebook, with a post made 3 hours ago stating:

COME SEE WHY THOUSANDS OF PEOPLE ARE LOVING THIS! ‪#‎10K1DAY‬ ‪#‎DIVVEE‬ ‪#‎WHYSGUYS‬ ‪#‎5000FAMILIES‬

5000 Families is of particular concern, as it’s a cash gifting scheme believed to be run by Sloan herself.

Naturally this would be in violation of the 2014 preliminary injunction, which prohibits Sloan from further engaging in acts of fraud.

At the time of publication the SEC has yet to take any additional action against her.

Footnote: 
Our thanks to Don@ASDUpdates for providing a copy of Judge Gorton’s May 17th order.

🤖 Quick Answer

What was Faith Sloan's carve-out request?
Faith Sloan requested a carve-out of $30,800 in suspected stolen Ponzi funds that were frozen through a preliminary injunction granted against her in May 2014. She sought to have these funds released, claiming they were untainted assets, but provided no supporting evidence for her claim.

Why did Judge Gorton deny Sloan's second carve-out request?
Judge Gorton denied the request with a simple notation of "motion denied" without providing detailed reasoning. The SEC argued that Sloan offered no proof the funds were legitimate and cited irrelevant criminal litigation unrelated to the civil case against her.

What was the SEC's position regarding Sloan's carve-out request?
The SEC opposed the carve-out request in multiple filings, pointing out the lack of evidence supporting Sloan's claims

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