Faith Sloan is lying about her assets, and the SEC is done playing around.

The federal regulator filed a blunt three-page response in May 2016 to Sloan's latest attempt to unlock $30,800 frozen under a court order from 2014. This is her second try. The court already rejected her identical arguments once. She's trying again anyway.

The SEC's message: nothing has changed, and Sloan knows it.

In the original motion, Sloan claimed she had identified all her assets sometime after June 13, 2014. The SEC called her out directly: she offers no proof because it isn't true. The regulator has caught her in the same lie before.

Sloan's second argument simply recycled her previous motion word-for-word. She claimed she never violated the asset freeze. The court rejected those exact arguments the first time around. Sloan filed them again. The SEC told the judge to reject them again.

Then Sloan got creative—or desperate. She started throwing constitutional law at the problem, apparently hoping something would stick. She invoked a Supreme Court case about criminal proceedings in a civil matter. She claimed the asset freeze violated the Fourteenth Amendment and the Massachusetts Declaration of Rights. She even cited the Eighth Amendment, which doesn't apply to civil cases.

The SEC's frustration was palpable in the filing's conclusion: "Enough is enough."

The regulator pressed on: "The Court should not waste any time denying Sloan's motion to release funds, which is a rehash of an earlier motion that the Court denied, which rests on the false claim that Sloan has identified her assets, and which relies on provisions of the U.S. Constitution (and even the Massachusetts Declaration of Rights) that do not apply."

Judge Gorton had not ruled as of the filing date.

While the legal battle dragged on, Sloan was busy running 5000 Families, a cash gifting scheme she operates despite a TelexFree preliminary injunction that explicitly prohibits her from engaging in fraud. The scheme has not appeared in any regulatory filing, but Sloan was actively recruiting members online, posting motivational messages attacking people who don't join as "weak" and pushing hashtags like #DONTBEWEAK and #FAITHSLOAN.

The contrast was stark: in court, the SEC portrayed Sloan as a repeat liar who wastes judicial resources with frivolous arguments. On social media, she was building what appeared to be another fraudulent operation while the frozen assets case remained unresolved.

🤖 Quick Answer

What were the SEC's main accusations against Faith Sloan?
The SEC accused Sloan of lying about identifying her assets and of submitting identical, previously rejected arguments to unlock $30,800 frozen since 2014. The regulator stated Sloan provided no evidence supporting her claims and had been caught in the same deception multiple times before.

Why did the SEC file a response to Sloan's motion?
The SEC filed a three-page response in May 2016 to challenge Sloan's second attempt to access frozen funds. The regulator rejected her arguments as recycled and unchanged, emphasizing that the court had already dismissed identical claims previously.

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