Faith Sloan, identified as a TelexFree operator, recently asked a Massachusetts District Court to release $15,800 in frozen funds. She stated the money was needed for living expenses and legal fees. The Securities and Exchange Commission (SEC) quickly filed an opposition to this motion yesterday.

The SEC's opposition filing presented evidence of Sloan's "flouting" of a preliminary injunction. Bank records indicate Sloan holds at least two undeclared accounts with Chinese banks. She has also made numerous payments using assets subject to a freeze order.

Three specific payments went to the company Changes Worldwide. These transactions covered Sloan's investment buy-in and that of at least one downline affiliate investor. The court's preliminary injunction against Sloan specified there would be no carve-outs from the asset freeze for defendants failing to identify their assets.

Sloan has not yet identified her assets to the SEC, a requirement of the injunction. She now argues that non-compliance does not matter because she "is now considering compliance." This consideration is based on her lawyer's research and opinion that identifying assets may not incriminate her.

Another point of contention involves when Sloan became aware of the injunctions. A temporary injunction was granted on April 15. This order was ignored. It then converted into a preliminary injunction in early May. Sloan continued to disregard this order until her recent claim of "considering" acknowledgement.

Sloan insists she "has not violated the asset freeze." She claims that when SEC attorney Scott Stanley contacted her by phone on April 17, 2014, he did not inform her that Judge Casper had entered a temporary restraining order against her. She also states he did not provide any related documents. Court records show the temporary restraining order was indeed entered on April 16, 2014.