Faith Sloan faces a June 18 deadline to respond to the Securities and Exchange Commission's amended complaint in the District Court of Massachusetts, despite her recent attempt to secure an extension. The SEC has rejected her request, labeling her claims as false and demanding she meet the established timeline.
Sloan filed a motion asking for an extension until June 29 to file a reply to the SEC's preliminary injunction. This request came three weeks after the injunction was granted, rendering the request largely pointless for that specific filing. Sloan's actual deadline to answer the amended complaint remained June 18. The SEC quickly filed an objection to her motion.
Sloan claimed she lacked "actual notice" of the complaint until Tuesday, May 27, 2014. She also stated that a process-server delivered documents to her mother, Antoinette Sloan, and argued the age description on the service form did not match her.
The SEC called both statements "nonsense." Commission attorney Scott Stanley spoke with Sloan on April 17, informing her of the lawsuit. Sloan then asked how to get a copy of the complaint, and Stanley directed her to the Commission's public website.
Stanley also requested an email and home address to send the complaint and an April 16 order. Sloan refused, telling him, "You just sued me. You must know everything about me so you can figure it out." She hung up while Stanley tried to ask her to have her lawyer contact the Commission.
Sloan acknowledged her mother, Antoinette, received the summons, complaint, and April 16 order from a process-server on May 6 at Sloan's Illinois residence. The SEC noted the return of service specified the recipient as "Over 65 Yrs.," referring to Antoinette Sloan. Faith Sloan did not deny her mother's name, the delivery of pleadings, or that she lived at that address on May 6.
The SEC stated Sloan offered no valid reason why she could not answer the amended complaint by June 18. Her motion for an extension was unnecessary because the 21-day clock under Federal Rules of Civil Procedure Rule 12(a) restarted on May 28, when her lawyer was served. This set the new deadline for June 18. The Commission noted Sloan's "verified" motion contained false statements about her knowledge and service receipt, asserting she did not know about the case until late May. The SEC views this as a "flagrant falsehood" made under penalties of perjury.
The SEC maintains that Sloan has known about the case since April 17 and was served with the summons and complaint on May 6. Her official response is due by June 18.
