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[Investar]

Prospectus Supplement dated July 29, 2009
For distribution solely in the State of Connecticut
http://www.prosper.com/Downloads/Legal/Prospectus_Supplement_Connecticut_2009-07-29.pdf

"On July 27, 2009, Prosper Marketplace, Inc. (“Prosper”) and the Banking Commissioner for the Department of Banking of the State of Connecticut executed a Consent Order to resolve matters relating to Prosper’s offers and sales of unregistered securities, and ... paid the State of Connecticut the sum of $12,602. The Consent Order was based on a ... template consent order finalized between Prosper and NASAA on April 21, 2009 ..."

Edit/add Connecticut's Department of Banking reports "Approximately 600 Connecticut residents purchased almost 25,000 notes and have financed Prosper loans totaling approximately $2.2 million during the period in question."
http://www.ct.gov/dob/cwp/view.asp?a=2246&q=444062

Subsequently, Connecticut approved lending and note trading on the 'new' Prosper 10 days after this sanction was issued (approved 08/07/09).

Edit/Update Michigan has also sanctioned Prosper (effective 06/25/09). Michigan received $20,461 in consideration of 40,000** unregistered securities (Prosper loans) sold in their state. Total unregistered sales were $6,452,422. **Michigan said 40,496 lenders were affected (meaning the average Michigan lender had just $90 invested). It is more likely 40,496 Loans were involved.
PDF of order: http://michigan.gov/documents/dleg/Prosper_Marketplace_Inc._-_Administrative_Consent_Order_285088_7.pdf
 
(suggest this move to The Lobby with the rest of the NASAA announcements)

[God-Father]

(suggest this move to The Lobby with the rest of the NASAA announcements)

Second

[112233]

I give blanket approval to move any nsaa-related thread I started to the lobby

[Investar]

I put together a table of what we know so far. Based on that, Prosper has settled just 8% of the potential $1 million involved to put the matter behind them. One has to wonder if some of the states will postpone until the outcome of the disenfranchised lender's class action is known. States are not required to participate in the NASAA sanction. If the lenders are successful their case would set nice precedent for state-level litigation. If they are not, the states can fall back on the NASAA protocol, which is open ended.

Edit/Update Michigan has also sanctioned Prosper (effective 06/25/09). Not on the table, adding their $20,461 the total sanction is just over $100,000, or 10% of potential. Total unregistered securities 'cured' moves from 14m to near $18 million. Michigan has not certified the 'new' Prosper.

[NewHorizon]

One has to wonder if some of the states will postpone until the outcome of the disenfranchised lender's class action is known.

In which case, states who've settled might not have put the screws to Prosper as much as deciding to let Prosper off easy.  (Of course as with Montana, the states can still use this settlement to rattle their sabres with words like "we will find you and we will punish you.”)

[mothandrust]

What's the running total of monies obtained that's been returned to residents of these states?

Is it 0 + 0 + 0 + 0 + 0 = 0 ?

[Capital_Finance_Group]

I have yet to see any money from any of these "settlements" paid to the rightful owners of the funds - those Lenders that lost their money in Prosper.

[Beerbud1]

http://www.ct.gov/dob/cwp/view.asp?a=2246&q=444062

2. No later than the date this Consent Order is entered by the Commissioner, Prosper shall remit to the State of Connecticut by certified or bank check payable to “Treasurer, State of Connecticut” the following amounts totaling Twelve Thousand Six Hundred Two dollars ($12,602):  Eleven Thousand and Six Hundred dollars ($11,600) as an administrative fine and One Thousand Two dollars ($1,002) to be applied to defray the Division’s investigative costs

Investar: they paid a larger fine than you originally quoted. FYI

[Beerbud1]

Colorado settles with Prosper marketplace:

http://www.dora.state.co.us/securities/pdf_forms/enforcement/prosper-consent.pdf

Prosper settled for a fine of $19,900.

[Investar]

http://www.ct.gov/dob/cwp/view.asp?a=2246&q=444062

2. No later than the date this Consent Order is entered by the Commissioner, Prosper shall remit to the State of Connecticut by certified or bank check payable to “Treasurer, State of Connecticut” the following amounts totaling Twelve Thousand Six Hundred Two dollars ($12,602):  Eleven Thousand and Six Hundred dollars ($11,600) as an administrative fine and One Thousand Two dollars ($1,002) to be applied to defray the Division’s investigative costs

Investar: they paid a larger fine than you originally quoted. FYI

Yes, I see. No, wait. I have it right. Thanks. Also, more states have sanctioned since I did my table and at least five are missing. According to pg39 of Prosper's last 10-Q filing, five more not shown had acted by Jun 30th. Not all regulators announce their actions to the web.

[Beerbud1]

http://www.kfi.ky.gov/NR/rdonlyres/10B36694-69A8-4AFB-AB18-725B97A46FFE/0/62008ProsperMarketplaceincagreedorder.pdf