BULLETIN: SEC Accuses Faith Sloan Of Violating Asset Freeze In TelexFree Case By Sending Thousands To ‘Changes Worldwide LLC,’ Company That Lists Zeek Figure Robert Craddock As Copyright Enforcer

From an SEC filing today that alleges Faith Sloan violated the TelexFree asset freeze by sending money to a "program" known as Changes Worldwide LLC. Redactions by PP Blog.

From an SEC filing today that alleges Faith Sloan violated the TelexFree asset freeze by sending money to a “program” known as Changes Worldwide LLC. Redactions by PP Blog.

BULLETIN: (4th Update 10:01 a.m. EDT June 13 U.S.A.) The SEC has accused Faith Sloan of violating the asset freeze imposed against her in the TelexFree pyramid- and Ponzi case by sending nearly $15,000 to Changes Worldwide LLC for the purchase of “business promo packs.” On its website, Changes Worldwide identifies Robert Craddock as its copyright agent. He also is believed to be an affiliate for Changes Worldwide.

Whether the SEC would seek return of the money from Changes Worldwide was not immediately clear. Recipients of ill-gotten gains can become relief defendants in SEC actions.

Craddock emerged as a figure in the Zeek Rewards Ponzi scheme case, with the SEC asserting in 2012 that he encouraged affiliates not to cooperate with the court-appointed receiver in the Zeek case. The receiver said at the time that he had obtained information “indicating that large sums of Receivership Assets may have been transferred by net winners to other entities in order to hide or shelter those assets.”

While a purported consultant for Zeek in July 2012, Craddock, citing alleged trademark and copyright violations, sought to shut down a Hubpages site by K. Chang that questioned the Zeek program, which the SEC and federal prosecutors later described as an $850 million fraud. K. Chang publishes the MLM Skeptic site.

One of the assertions against Sloan today by the SEC is that she had the sole power of direction and was the sole beneficiary of a real-estate trust, but amended trust documents after the TelexFree freeze to transfer her interest to her mother — in violation of the asset freeze. Sending money to Changes Worldwide and a separate entity known as Changes Trading LLC also violated the freeze, the SEC alleged.

The SEC said that it had linked Sloan to three transactions with Changes Worldwide on April 25, eight days after Sloan learned of the asset freeze. Two of the transactions were for $5,000 each, and a third was for $4,854, the SEC asserted.

On April 28, 11 days after she learned about the freeze, Sloan sent $3,990 to Changes Trading, using two separate checks for $1,995 each, the SEC alleged.

Neither of the “Changes” entities nor Craddock has been accused of wrongdoing, but the alleged Sloan transactions lead to questions about whether MLM promoters accused of fraud are hiding money in other “programs” and abusing trusts in bids to avoid detection and keep their interests in schemes intact.

A crime known as structuring also could be occurring if the transactions are set up to evade bank-reporting requirements. In a civil action against TelexFree in April, the Massachusetts Securities Division raised the issue of structuring.

The SEC said today that Sloan had asserted her Fifth Amendment right against self-incrimination over a TelexFree related matter involving the asset freeze cited in a preliminary injunction. The injunction requires her to identify her assets. She has not been charged criminally, but it is known that a criminal probe is under way.

Read a November 2013 review of Changes Worldwide on BehindMLM.com.

NOTE: Our thanks to the ASD Updates Blog.

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6 Responses to “BULLETIN: SEC Accuses Faith Sloan Of Violating Asset Freeze In TelexFree Case By Sending Thousands To ‘Changes Worldwide LLC,’ Company That Lists Zeek Figure Robert Craddock As Copyright Enforcer”

  1. Quick note: Today’s SEC documents do not address whether Sloan was a “winner” in Zeek. Her name is not listed in Zeek court filings as a winner, but some of the folks could have used business entities and trusts, rather than their names.

    Alleged Zeek winner Todd Disner, formerly of AdSurfDaily, is seeking to file pro se in the actions against winners. Disner allegedly was associated with an entity known as Kestrel Spendthrift Trust.

    Longtime readers will recall that Disner was on post-SEC action phone calls with Robert Craddock in which they tried to poison the well against the Zeek receiver. Zeek luminary and alleged winner T. LeMont Silver was on at least one of the Craddock calls.

    Patrick

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  2. Hilarious that she keeps poking the bear and thinks the Government has nothing on her. I bet they have a boatload of info of the scams she is/was involved in.

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  4. Well, this explains why she tried to get it into the record that she didn’t learn of the SEC action until “late May”, she had a few things she wanted to get arranged before the enforceable date of the injunction.

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  5. That’s called “willful blindness”, i.e. “I didn’t know about the SEC freeze order because I refused to look for it”. It will be charged as contempt and she’ll be hit even harder by the penalty.

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