The SEC just gave up on two major fraud charges against Faith Sloan, one of the defendants in the sprawling TelexFree case.

On March 27th, the agency filed paperwork to voluntarily dismiss both securities fraud claims linked to alleged violations of the Securities Act. The SEC provided no explanation for the move.

What remains is a $1.2 million summary judgment against Sloan—money the agency is still actively pursuing. The judgment hearing is set for May 13th.

The decision to drop the fraud charges while keeping the financial judgment is unusual. Typically, the SEC pursues full charges regardless of a defendant's ability to pay. Without a settlement announcement or court documents spelling out the reasoning, it's hard to know what prompted the reversal. One possibility: the SEC is satisfied recovering Sloan's TelexFree profits plus interest. If Sloan has to repay $1.2 million, there might not be much left to extract anyway.

But there's a wrinkle that makes the SEC's move look particularly odd. As of late March, Sloan was actively promoting SCF Token, part of Super CodingFly—a cryptocurrency MLM scheme running a classic Ponzi operation. She was publicly involved in another fraudulent scheme even as the SEC was deciding what charges to pursue against her.

The irony is thick. The agency drops securities fraud allegations while Sloan continues committing what appears to be securities fraud.

An April 12th update: Sloan's trial has been postponed to June 10th, pending approval of a settlement the SEC and Sloan are apparently negotiating. That might finally explain the earlier charge dismissal—a sign the two sides were already working toward a deal.

🤖 Quick Answer

Why did the SEC dismiss fraud charges against Faith Sloan?
The SEC voluntarily dismissed two securities fraud claims against Faith Sloan in the TelexFree case on March 27th without providing official explanation. The agency retained a $1.2 million summary judgment, indicating a strategic shift in prosecution approach while maintaining financial recovery efforts through the scheduled May 13th judgment hearing.

What charges remain against Faith Sloan?
Following the dismissal of securities fraud claims, a $1.2 million summary judgment remains the primary enforcement action against Sloan. The SEC continues actively pursuing this financial judgment, with proceedings scheduled for May 13th to determine recovery terms and payment obligations.

How unusual is the SEC's decision to drop fraud charges while maintaining financial judgment?
This approach represents an atypical prosecutorial strategy. Typically, the SEC pursues comprehensive charges independent of defendants' financial capacity. The absence of settlement

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