Randy Crosby has given up. After three and a half years of denying everything, the man the SEC calls "one of the most successful promoters of TelexFree" is now negotiating a settlement with federal regulators.

The shift marks a dramatic reversal. When the SEC froze his assets with a preliminary injunction, Crosby claimed ignorance. He said he knew nothing about TelexFree being a $3 billion Ponzi scheme. That defense has crumbled.

On December 12th, Crosby filed a motion asking for more time to respond to the SEC's Second Amended Complaint. The court rejected it the same day. Three days later, he tried again with a motion for reconsideration. This time, he revealed what had really been happening behind the scenes.

Crosby and the SEC had been talking since September 28, 2017, when the SEC filed the updated complaint. Crosby prepared detailed financial statements. The SEC reviewed them. Both sides began mapping out a settlement.

The SEC said it would complete its financial review and make an offer within 60 days. Crosby asked for a 30-day extension. The court granted it. The timeline suggests the SEC's offer window closes around January 10th—the deadline Crosby requested.

When exactly Crosby handed over those financial statements remains murky. What's clear is that he's ready to make a deal.

His capitulation leaves only two major TelexFree operators still fighting. Faith Sloan and Santiago De La Rosa continue to resist. De La Rosa recently tried to get the second amended complaint dismissed, dismissing the SEC's Ponzi scheme findings as mere "theory."

Both are digging in for what looks like a long legal battle. The odds are terrible. The evidence is overwhelming. They're fighting anyway.

The next meaningful development should come around January 10th, when Crosby's extension expires and the court gets an update on whether settlement talks have produced results. Until then, two scheme promoters remain determined to drag out their cases indefinitely, even as their former partner heads toward surrender.

🤖 Quick Answer

Who is Randy Crosby and what was his role in TelexFree?
Randy Crosby was identified by the SEC as one of the most successful promoters of TelexFree, a $3 billion Ponzi scheme. He initially denied any knowledge of the fraudulent operation when the SEC froze his assets, but later entered settlement negotiations after three and a half years of refusing culpability.

Why did Randy Crosby change his legal strategy in December?
Crosby filed motions requesting additional time to respond to the SEC's Second Amended Complaint, which were rejected. His subsequent motion for reconsideration revealed ongoing negotiations with the SEC since September 2017, indicating a strategic shift toward settlement rather than continued denial.

What does Crosby's settlement negotiation indicate about his previous defense?
Crosby's decision to negotiate represents an abandonment of his initial defense claiming ignorance

🔗 Related Articles

- SEC file for lift of stay in TelexFree civil case
- De La Rosa & Crosby preliminary injunction granted
- TelexFree delay preliminary injunction hearing
- TelexFree insiders try to cut prelim injunction deals
- SEC file $23.5M Wings Network Ponzi scheme lawsuit