Prosper order to cease and desist by SEC

[beerbud1]

Just sent an e-mail to Pensioner to inform him.

[bamalucky]

Incorporation doesn't cover you from liability in criminal activity.Any of the resident lawyers want to weigh in on going after personal assets if they bankrupt?

[DakotahFury]

Well...it's been fun. 

[bamalucky]

The Main Customer Support: (800) 208-0103  is a non working number 

[Shenandoah]

The Main Customer Support: (800) 208-0103  is a non working number 

Where's that number from?  It's not the number I see when I click on the Contact Us link.

[112233]

415-593-5400 still works

[NewHorizon]

The Main Customer Support: (800) 208-0103  is a non working number 

Where's that number from?  It's not the number I see when I click on the Contact Us link.

Another piece of our Prosper directory that's gone out of date, it seems.

[112233]

They probably saved money by getting rid of the 800#.

[bamalucky]

I called all 14 direct numbers from here

http://www.prospers.org/wiki/Prosper%20Directory

Not a single person picked up.Voicemail on all.

[cowdog]

Déjà vu.

"Right now the (Red Gorilla) system is offline, all the employees were let go, and there's no money in the bank," said chief executive John Witchel. "Officetool.com has agreed to continue operating the Web site so that our customers can continue to use our software."

http://news.cnet.com/Red-Gorilla-cant-survive-capital-market-jungle/2100-1017_3-247212.html

 

[Mtnchick]

I called all 14 direct numbers from here

http://www.prospers.org/wiki/Prosper%20Directory

Not a single person picked up.Voicemail on all.

They're being vewy, vewy qwiet....

[bamalucky]

I called all 14 direct numbers from here

http://www.prospers.org/wiki/Prosper%20Directory

Not a single person picked up.Voicemail on all.

They're being vewy, vewy qwiet....

Quiet period was all bullshit.This was what was really happening.They just tried to piggyback on the LC excuse.

[ira01]

I called all 14 direct numbers from here

http://www.prospers.org/wiki/Prosper%20Directory

Not a single person picked up.Voicemail on all.

They're being vewy, vewy qwiet....

Quiet period was all bullshit.This was what was really happening.They just tried to piggyback on the LC excuse.

Of course -- didn't I say that immediately after their so-called "quiet period"?

This is almost certainly the end of Prosper.  I believe that every lender is probably entitled to have their "unregistered securities" repurchased by Prosper (even the defaulted ones), which Prosper obviously doesn't have the money to do.  I think a BK filing by Prosper is almost assured.  An interesting question is going to be the personal liability of Prosper's Officers and Directors.  While I don't know for sure, I think there is a pretty good shot at digging into Chris Larsen's personal assets.  Presumably, Prosper (and its Officers and Directors) will also be suing their legal counsel, since I imagine Prosper got a pre-launch legal opinion that they did not need to regsiter.  What a mess. 

I also want more information about this:

In view of the foregoing, the Commission deems it appropriate to impose the sanctions agreed to in Respondent Prosper’s Offer.

I haven't checked (and don't have time to now), but I wonder if the settlement agreement is also posted on the SEC site.  I want to know what the "sanctions" are. 

[bamalucky]

I haven't checked (and don't have time to now), but I wonder if the settlement agreement is also posted on the SEC site.  I want to know what the "sanctions" are.

It reads as if the offer is this

Accordingly, it is hereby ORDERED that: Pursuant to Section 8A of the Securities Act, Respondent Prosper cease and desist from committing or causing any violations and any future violations of Sections 5(a) and (c) of the Securities Act.

Based on the above, the Order orders Prosper to cease and desist from committing or causing any violations and any future violations of Sections 5(a) and (c) of the Securities Act of 1933. Prosper consented to the issuance of the Order without admitting or denying any of the findings in the Order. (Rel. 33-8984; File No. 3-13296)

http://www.sec.gov/news/digest/2008/dig112408.htm

[DakotahFury]

Larsen has been a pretty large donator to the Democrats over the years...maybe he can phone in a favor to have the feds pick up the tab for the outstanding loans.